U.S. Department of Justice Alice H. Martin United States Attorney Northern District of Alabama

COMPUTER MANAGER SENTENCED FOR HEALTHCARE/TAX FRAUD

BIRMINGHAM, AL - United States Attorney Alice H. Martin of the Northern District of Alabama, Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation, and James D. Vickery, Special Agent in Charge, Internal Revenue Service-Criminal Investigations Division, announce that TIMOTHY V. BUCKNER, 41, of Springville, Alabama, was sentenced yesterday on charges of healthcare fraud and income tax evasion involving his position as Director of Technology at Eastern Health System, Inc., Birmingham, Alabama. United States District Judge C. Lynwood Smith, Jr. sentenced BUCKNER to 37 months in jail and three years supervised release after the prison term is served. He was ordered to pay $273,342.72 in restitution to Eastern Health.

According to U.S. Attorney Alice H. Martin, BUCKNER managed the computer systems at Eastern Health System, Inc., Birmingham, Alabama. He set up the nominee business name, “Network Services, Inc., Division of Network Partners, Inc.”, an unincorporated entity which allegedly provided computer services to Eastern Health. Network Services, Inc., consisted of a letterhead, a mail-drop address, and a checking account set up by using his wife’s social security number. BUCKNER created and submitted bogus claims in the name of Network Services, Inc. for purported computer goods and services, representing them to be legitimate for the purpose of causing Eastern Health System, Inc. to issue checks in payment of the alleged goods and services. BUCKNER received the checks from Eastern Health System, Inc. totaling over $273,000, deposited the checks into the Network Services bank account, and spent the proceeds. He did not report the proceeds as income on his1999, 2000, and 2001 federal tax returns.

“All income, from whatever source, is taxable income, even income generated by fraud. Convictions for healthcare fraud and tax fraud carry stiff sentences,” stated U.S. Attorney Alice H. Martin.

Special agents of the FBI and IRS investigated this case. Assistant United States Attorney Ron Brunson is prosecuting the case.

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