Second Former Humana Inc. Employee Admits To Taking Kick-Backs Totaling $2 Million Dollars In An Insurance Sales Bribery Scheme
LOUISVILLE, Ky. – Former Humana Inc. regional sales director, Glen Allan Fine, pleaded guilty in United States District Court in Louisville, Kentucky today, to charges of racketeering and bribery, in connection with his former position, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Fine, age 56, of Louisville, pleaded guilty to a single count federal information charging him with taking kickbacks totaling at least two million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization. Co-defendant, James Wenger, age 50, of Louisville pleaded guilty to the charge on January 23, 2013.
According to the plea agreement, Fine admits that in 2005, he, along with Wenger and others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA). Fine and co-defendant James Winger, another Humana employee, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Fine and Wenger. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious businesses accounts in their wives' names. Fine admitted he sent agents to Cutler and McNerney's MGAs, and acknowledged his wife did not provide any service in exchange for the money received from Cutler. Fine was not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Fine received approximately $2,000,000 for his participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
At sentencing, Fine faces a combined maximum term of five years in prison, a combined maximum fine of $250,000, and a three year period of supervised release. Fine may also be ordered to forfeit any and all property derived from the gross proceeds of the offenses for which he has pleaded guilty.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, and the United States Postal Inspection Service, with assistance from the Humana Inc.