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Virginia Man Sentenced to 63 Months for Kickback Schemes
A former employee of Medical Facilities of America Inc. has been sentenced to serve 63 months in prison for accepting kickbacks from contractors and evading federal income taxes, according to a federal court ruling. John D. Henderson, of Colonial Heights, Va., was found guilty of participating in two separate conspiracies involving the steering of contracts for the repair, maintenance and renovation at MFA health care and nursing home facilities.
The conspiracies, which took place from 1998 to 2006, involved Henderson accepting more than $560,000 in kickbacks and steering MFA contracts totaling more than $5 million. Henderson was also ordered to pay a total of $698,088 in restitution and additional taxes, penalties and interest to the Internal Revenue Service for his participation in the kickback schemes.
Henderson pleaded guilty on March 14, 2012, to two counts of conspiracy to commit mail and honest services fraud and to two counts for failing to include the kickbacks and other income he received on his federal income tax returns for years 2005 and 2006. Henderson’s sentencing is the latest in a series of convictions related to the award of repair, maintenance and renovation contracts at MFA facilities.
“Through this kickback scheme, Henderson and his co-conspirators deprived MFA of competitive pricing to its financial detriment,” said Acting Assistant Attorney General Joseph Wayland. “Today’s sentencing demonstrates the division’s commitment to holding executives accountable for disrupting the competitive bidding process for service contracts.”
Henderson is the fifth individual to plead guilty in the investigation into the award of repair, maintenance and renovation contracts at MFA facilities. Three other former employees of MFA have also been sentenced in connection with the scheme. Donald R. Holland and Larry R. Sumpter were each sentenced to two years of probation and fined $50,000 and $15,000, respectively. Edward T. Fodrey was sentenced to serve 37 months in prison and ordered to pay $326,799 in restitution. Gary L. Johns was sentenced to three years of probation and ordered to pay $169,341 in restitution.
The investigation into the kickback schemes was conducted by the Antitrust Division’s Philadelphia Field Office, the U.S. Attorney’s Office for the Western District of Virginia, the FBI in Roanoke and the Internal Revenue Service-Criminal Investigation in Roanoke. Anyone with information concerning fraudulent behavior relating to the award of contracts by MFA should contact the Antitrust Division’s Philadelphia Field Office at 215-597-7405 or visit www.justice.gov/atr/contact/newcase.htm
Henderson’s sentencing serves as a reminder of the importance of holding executives accountable for their actions and the consequences of engaging in kickback schemes. The case highlights the need for vigilance in monitoring the award of contracts and ensuring that they are awarded fairly and competitively.
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Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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