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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Pennsylvania

FOR IMMEDIATE RELEASE
Friday, January 20, 2017

UPMC Claims Manager Admits Paying $846K to Two Ghost Employees

PITTSBURGH - A resident of Georgetown, Texas, pleaded guilty in federal court to a charge of embezzlement in connection with health care, Acting United States Attorney Soo C. Song announced today.

Ronald Larry Locy, 48, pleaded guilty to one count before United States District Judge David Stewart Cercone.

In connection with the guilty plea, the court was advised that Locy was the Senior Director of claims for the UPMC Health Plan Claims Department. According to the government, Locy caused UPMC to pay two “ghost employees” of UPMC Health Plan, for work and bonuses to which those ghost employees were not entitled. The loss to UPMC Health Plan was approximately $846,819.

Judge Cercone scheduled sentencing for May 24, 2016, at 11 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Locy.

Updated January 20, 2017