Opinion ID: 2967751
Heading Depth: 4
Heading Rank: 5

Heading: The False Salary Classifications

Text: As part of the fraud scheme, Ms. Bolden misclassified several employees’ salaries as direct costs on the 1993 and 1994 Cost Reports. Specifically, she improperly classified her own salary, as well as those of an Emerald Health administrative assistant, two of its accounting clerks, a physician assistant, and a maintenance employee, as direct rather than indirect costs.15 For example, Ms. Bolden designated Lori Gann as a medical records clerk, rather than an accounting clerk, in order to misclassify Gann’s salary as a direct cost on the 1993 and 1994 Cost Reports. By misclassifying these salaries, Ms. Bolden overstated Emerald Health’s direct costs on the 1993 and 1994 Cost Reports by over $190,000.