Summit Pointe To Pay Millions To Michigan For Fraud Under Former CEO
Calhoun County’s mental health and addiction services provider has worked out a deal with the State of Michigan for embezzlement and fraud their former CEO orchestrated.
Between 2007 and 2014, Summit Pointe misspent $19 million in Medicaid dollars, under CEO Erv Brinker’s leadership. According to a state audit, those expenses included things like $12,000 for his golf club membership, $23,000 for parties and entertainment, $500,000 for Brinker to get the services of a psychic, and $838 spent on a Bobcat costume “purchased for an unknown reason”.
The largest waste of money, however, was a $13 million pension plan for Brinker and other executives orchestrated without board approval.
Now, under new CEO Jeannie Goodrich, the Battle Creek Enquirer says that Summit Pointe will be paying back the state of Michigan $17.9 million. In order to pay that fine, Summit Pointe will turn over the value of that improper pension plan, and they will also have to sell six low income rental properties they own and give the earnings to the state. Those properties will be sold with restrictions to keep them affordable to their tenants.
Former CEO Brinker pleaded guilty to two counts of Medicaid Fraud and one count of Embezzlement by a public official, and was released from prison on parole after two years last September. He has yet to pay back any of the over $1 million in restitution and penalties he was ordered to.