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Does UK’s President Have A Medicare Problem?

May 6th, 2011 · 6 Comments

A legal blog says the University of Kentucky’s new president – Eli Capilouto – has ties to Medicare fraud:

According to two whistleblower lawsuits, filed under the U.S. False Claims Act, UAB engaged in a research-fraud scheme involving hundreds of millions of dollars during much of the time Capilouto was a dean or provost at the school.

The lawsuits, filed in U.S. District Court in the Northern District of Alabama, allege that UAB engaged in about $600 million worth of research fraud over at least a 10-year period. The Bush Justice Department settled the qui tam cases in 2005, while Capilouto was provost, for $3.4 million, which was less than one percent of the alleged fraud. Under the treble-damages provision of the False Claims Act, UAB could have been liable for approximately $1.5 billion.

-SNIP-

Allegations in the qui tam complaints involve misappropriation of funds from Medicare, Medicaid, the National Institutes of Health (NIH), and other federal entities. The government alleged that UAB submitted claims under Title XVIII of the Social Security Act, which involves health insurance for the aged and disabled. UAB also allegedly defrauded a health-insurance program for military personnel and their dependents.

-SNIP-

As we noted earlier, part of the fraud involved a Social Security program for the aged and disabled. And what is CHAMPUS? Now known as TRICARE, it provides civilian health benefits for military personnel, military retirees, and their dependents.

In other words, UAB’s scheme involved bilking federal programs designed for the aged, the disabled, veterans, active-duty military personnel, and their dependents.

The University of Kentucky chose a president who was in the midst of all that? Have UK officials ever heard of “doing your homework”?

Click here to read it all.

Regardless of qualifications, it seems UK may not have, you know, bothered to investigate all of these messes.

Tags: Education · Health Care · Investigation

6 responses so far ↓

  • 1 blowin' in the wind // May 6, 2011 at 11:12 am

    Kentucky: Home of multiple ethically-challenged state universities and Boards at all levels of the education system who do not understand the phrase “due diligence.” Sigh.

  • 2 Elihu Smails // May 6, 2011 at 12:21 pm

    Forgive the elitism here, but as a UK alum, this appointment is absolutely embarrassing. I realize Lee Todd has done his best to take the university backward, but since when does UK appoint the Provost, not the President, of an inferior school that’s quite different in character from UK? UK should be able to get a President who’s done well at a peer or lower ranked school or the Provost of a higher ranked state school (think IU, Ohio State, Wisconsin). Furthermore, this gentleman is over 60 years old. But I guess this is what I would expect from a Board of Trustees whose members include a yoga instructor, a car dealer, a homebuilder, a couple of country lawyers and a travel agent, all of whom have certainly spent considerable time outside of Kentucky to gain a global perspective and whose jobs require considerable amounts of higher education education.

  • 3 Novena // May 6, 2011 at 12:28 pm

    “Hail to the New UK Chief!”

    UofL prof: “I like your new presidential appointment.”

    UK prof: “How in the hell can you say that after all this stuff has come out–and he hasn’t even hit campus yet?”

    UofL prof: Makes us look a tad better than we have since Felner, JR, and all that anonymous crap that went on for years.”

    UK prof: Yeah–and this isn’t even anonymous crap. The Board of Trustees here makes your Board of Cadavers look at least comatose.”

  • 4 Novena // May 6, 2011 at 1:31 pm

    “The 100% Law of Academic Administrators”

    No matter how incompetent, unethical, sociopathic, or otherwise corrupt, he/she has proven to be at a given university, he/she will garner an even bigger stage at the next university.

  • 5 James R. // May 7, 2011 at 9:43 am

    These things never effect the elite class, but god forbid a working class person has anything on their record, and they are banned for life for decent jobs.
    With politicians and wealthy people, its like these things are acceped. FU IMO.

  • 6 Novena // May 7, 2011 at 5:54 pm

    “To James R, with Little Hope but Some Wisdom”

    As Nick says in “The Great Gatsby”:
    “Wealth and class mean nothing in reference to character.” These horrid honchos prove that in spades.

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