News and Press Releases

Former Head of State College Medical Billing Firm Sentenced for $2.46 Million Embezzlement of Health Insurance Reimbursements

FOR IMMEDIATE RELEASE
September 2, 2011

     The United States Attorney's Office for the Middle District of Pennsylvania today announced that the former head of a State College medical billing firm was sentenced in federal court on Tuesday, August 30, 2011, before United States District Court Chief Judge Yvette Kane.

     Ronald A. McFarland, age 53, of State College, Pennsylvania, was sentenced to a 37-month term of imprisonment and two years of supervised release. Judge Kane further ordered that McFarland pay $2,463,922 in restitution.

     According to United States Attorney Peter J. Smith, on February 24, 2011, an Information was filed charging McFarland with theft and embezzlement of $2.46 million in health insurance reimbursements belonging to two cancer treatment centers in Pittsburgh, Pennsylvania, and Liverpool, Ohio.

     McFarland was the president of Verimed Services, Inc. and Medical Alliance Partners, LLC, both based in State College. Through those companies, he provided third-party billing services to Rosewood Cancer Care, Inc., Pittsburgh, Pennsylvania, and Oaktree Cancer Care, Inc., East Liverpool, Ohio, which both provided outpatient radiation treatment programs for cancer patients.

     Verimed billed health insurance plans and programs for medical treatment provided to patients of Rosewood and Oaktree, and then it received, recorded, and forwarded checks payable to Rosewood and Oaktree from the insurance plans and programs.

     McFarland diverted and embezzled insurance payments for Oaktree and Rosewood, totaling $2.46 million, and transferred the stolen funds to business and personal accounts controlled by him. McFarland also concealed the theft by making false entries in daily collections logs and patient ledgers.

     McFarland pled guilty on March 17, 2011 to theft and embezzlement in connection to health care.

     The case was investigated by the State College office of the Federal Bureau of Investigation. Prosecution was handled by Assistant United States Attorney George J. Rocktashel.

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