Ronald Larry Locy, 48, of Southeast Olympia, Washington, is headed to federal prison after being nailed for an eight-year embezzlement scheme that bled UPMC Health Plan of $846,819. The former Senior Director of Claims orchestrated a rigged payroll scam using two non-existent employees, funneling cash and bonuses into his own pockets while covering his tracks with falsified records and emails.
U.S. District Judge David Stewart Cercone slapped Locy with 24 months behind bars, followed by three years of supervised release. The court also ordered full restitution of $846,819 — a sum tied directly to payments made to the phantom workers Locy invented and managed from within the claims department he once led.
According to court filings, Locy used his high-level access to manipulate internal systems, creating the illusion that the ghost employees were active, productive staff. He approved their fabricated workloads, issued false performance reviews, and even awarded them bonuses — all while collecting the payouts himself through controlled channels.
The scam ran from Locy’s post at UPMC in Pittsburgh, where he held significant authority over claims processing and payroll oversight. Instead of policing fraud, he became its architect, exploiting trust and bureaucratic inertia to keep the scheme alive for nearly a decade.
Judge Cercone didn’t mince words, calling the operation “sophisticated” and noting the deliberate falsification of emails and personnel files designed to throw off audits and internal reviews. The deception wasn’t sloppy — it was calculated, sustained, and costly.
U.S. Attorney Scott W. Brady credited the Federal Bureau of Investigation for cracking the case, saying the conviction sends a message: “No one is above the law — not even the executives meant to safeguard corporate integrity.” Locy will begin his sentence immediately and remain under federal supervision upon release.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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