States Attorney's Office District of Connecticut
|January 5, 2010||
FORMER HAVEN HEALTHCARE CEO PLEADS GUILTY TO FEDERAL CHARGES
Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that RAYMOND TERMINI, 48, of Middletown, waived his right to indictment and pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of conspiracy to commit wire fraud and one count of monetary transaction in property derived from specified unlawful activity.
According to court documents and statements made in court, TERMINI was the Chief Executive Officer of Haven Healthcare, a defunct healthcare business with its headquarters formerly located in Middletown, Connecticut. Beginning in 2007, TERMINI and others engaged in a scheme to defraud Omega Healthcare Investors (“Omega”), a real estate investment firm located in Maryland. Omega owned nursing homes in Connecticut, Vermont, and New Hampshire, which Omega leased to Haven Healthcare, who operated and managed the homes.
In September 2007, Omega agreed to provide funding to Haven Healthcare for capital improvements to the fire sprinkler systems at two of its facilities, Haven Health Center of Jewett City and Haven Health Center Soundview in West Haven. Omega agreed to reimburse Haven Healthcare for “Actual Costs” of sprinkler improvements for the fire sprinkler systems at the Jewett City and Soundview facilities, up to an amount of $2 million.
In pleading guilty, TERMINI admitted that he and others obtained the sprinkler funds from Omega, but did not intend to use the money for the sprinklers at the facilities. TERMINI further admitted that upon receiving the sprinkler funding, he did not pay the vendors as he had told Omega he would, and did not spend the funds on the sprinklers.
“Individuals who operate nursing homes have an obligation to hold their conduct to the highest standards, and any criminal activity that occurs in this and other health care environments will be vigorously prosecuted,” stated U.S. Attorney Dannehy.
As part of his plea, TERMINI further admitted that in February 2005, he obtained on behalf of Haven Healthcare a $6 million loan from Allied Capital Corporation (“Allied”), a Maryland corporation with its principal offices located in Washington, D.C.. Although the purpose of the loan was to reduce Haven Healthcare’s debt, TERMINI admitted that he spent the money on other purposes, including purchasing real estate in his wife’s name and under an LLC she controlled.
As part of his plea, TERMINI agreed to forfeit $500,000, in the form of a lien on property owned by LLCs controlled by his wife.
“Today’s guilty plea and the others that have been secured in this investigation are a tribute to the outstanding efforts of all the federal agencies that worked on the Haven Healthcare case,” stated Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation in New Haven. “This investigation also serves as a reminder to all that our joint efforts to combat health care fraud here in Connecticut will continue.”
“Raymond Termini and others responsible for the care of care of elderly patients have been held accountable for their criminal conduct,” stated Susan J. Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Boston Regional Office. “Greed, at the expense of our most vulnerable citizens, will not be tolerated. The Boston Regional Office will continue to aggressively investigate those who commit health care fraud.”
“IRS Criminal Investigation welcomes the opportunity to work with our law enforcement partners on important investigations such as this,” stated Susan Dukes, Special Agent in Charge, IRS Criminal Investigation. “To combat health care fraud, CI provides financial investigative expertise to multi-agency task forces where we follow the money trail from the crime to the culprit.”
“Anyone abusing the trust and finances reserved for operating nursing homes commits a heinous crime that can impact some of the nation’s most vulnerable people, senior citizens,” stated Kenneth M. Donohue, Inspector General for the U.S. Department of Housing and Urban Development, Office of Inspector General.
Judge Underhill has scheduled sentencing for March 26, 2010, at which time TERMINI faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 on the unlawful monetary transaction count, and a maximum term of imprisonment of five years and a fine of up to $250,000 on the conspiracy count.
This matter is being investigated by the federal Health Care Fraud Task Force, including agents from the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; the Internal Revenue Service – Criminal Investigation Division; U.S. Department of Housing and Urban Development, Office of Inspector General; the U.S. Department of Veterans Affairs, Office of Inspector General, and the U.S. Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney David J. Sheldon and Auditor Susan Spiegel.
U.S. Attorney Dannehy encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 785-9270, or 1-800-HHS-TIPS.
U.S. ATTORNEY'S OFFICE
Department of Justice
Project Safe Neighborhoods