Columbia Officials Guilty of Massive Fraud Scheme Against Medicaid Program

COLUMBIA, S.C. – A Story of Fraud Unraveled

There’s no sugarcoating it: the recent news out of Columbia, South Carolina, is a stark reminder of how some individuals can misuse their positions for personal gain. In the most recent turn of events, two men, Richard Kirchner and Brian Devanney, found themselves in hot water after pleading guilty to what can only be described as a serious case of fraud against the South Carolina Department of Health and Human Services (SCDHHS).

How the Scheme Worked

According to the federal indictment that was released on July 10, the troublemakers in question, aged 71 and 66 respectively, held managerial positions at Conduent State Healthcare LLC. This company had the essential job of assisting callers with questions regarding Medicaid — a vital service that many rely on daily. However, instead of providing honorable service, Kirchner and Devanney came up with a sneaky plot.

Their primary goal? To defraud the state out of millions of dollars over several years. They managed to pull this off by fabricating calls through technology, which allowed them to show that they were receiving more inquiries than they actually were. This little trick enabled them to inflate their billing to the state, resulting in over $8.1 million in overcharges.

Background on the Contract

The contract signed with SCDHHS stipulated that at least 80% of incoming calls needed to be answered within 60 seconds. Pretty reasonable, right? But here’s where the situation took a turn for the worse. The payments that Conduent received were designed to increase based on the volume of calls they handled. In simpler terms, the more calls they logged, the more money they could potentially make. All of this came crashing down when the company chose to do the right thing.

Turning Point: Self-Disclosure

Fast forward to June 8, 2023, when Conduent decided to come clean. They reported their fraudulent activity to the United States Attorney’s Office, making it clear that the honest path was the best route to take. The company not only informed SCDHHS about the discrepancies but also suspended any invoices that were still pending with the state. Kirchner and Devanney were shown the door as part of the company’s efforts to clear up the mess.

What’s more, the company also returned the funds that were unlawfully taken, hoping to undo some of the damage that was caused. This kind of voluntary self-disclosure resonates with many, as it highlights the importance of integrity and accountability in government contracting.

A Statement from Authorities

Adair F. Boroughs, U.S. Attorney for the District of South Carolina, emphasized the government’s role in protecting taxpayer dollars by stating, “Protecting taxpayer dollars from such fraud and abuse is an important part of our work. This settlement highlights the importance of integrity in government contracting, the benefits of voluntary self-disclosure…”. It’s evident that the authorities are serious about holding individuals accountable for their actions.

The Road Ahead

While Kirchner and Devanney have admitted their guilt, they are still awaiting sentencing. This leaves many wondering what the ultimate consequences will be for their actions. There’s a lesson to be learned here for both businesses and individuals working with government contracts: transparency and honesty should always be prioritized to ensure that our public resources are used appropriately.

In the end, Columbia’s community is left to ponder the impact of this case. It’s a tough lesson, but it’s crucial to remember that accountability is essential in maintaining trust in our public services. Hopefully, this situation serves as a wake-up call to anyone tempted by the allure of easy money at the expense of integrity.

Stay engaged, informed, and connected as the story develops!