Opinion ID: 749850
Heading Depth: 4
Heading Rank: 2

Heading: The Concealment of Related Company Managed Risk Allegations (Counts 30-32)

Text: The Government charges that Kelly and Suba fraudulently concealed their ownership in Managed Risk from Healthmaster employees, although Managed Risk operated on the Augusta premises of Healthmaster, its largest client, and, Healthmaster paid Managed Risk's overhead and travel expenses. In addition, Kelly did not identify Managed Risk as a related company on Healthmaster's cost reports for 1991, 1992, or 1993. See note 12 supra. Kelly, using Managed Risk as middleman, established the Augusta WC account, designed after Healthmaster's existing self-insured health program. See Part II C. 2. supra. Managed Risk received fees of $101,844 in 1991 and $114,382 in 1992 for managing Healthmaster's Augusta WC and Augusta II accounts. 17 In the meantime, Kelly and Suba continued to receive their Healthmaster salaries. With Managed Risk posing as their middleman, the Government contends that Kelly and Suba could in essence double-bill Medicare for work they performed for Healthmaster since Managed Risk fees, like their Healthmaster salaries, were reimbursed by Medicare as operating expenses.