Former Harrisburg Businessman Pleads Guilty To Defrauding Pennsylvania College Faculty Union
HARRISBURG The United States Attorneys Office for the Middle District of Pennsylvania announced that the former owner/operator of a Harrisburg based dental and vision claims processing business, Michael Timothy Buchanan, age 68, of Fishers, Indiana, pleaded guilty on May 14, 2019, before U.S. District Court Judge Sylvia H. Rambo, to one count of Health Care Fraud.
According to United States Attorney David J. Freed, Buchanan admitted to defrauding a trust fund established by the Association of Pennsylvania State College and University Faculties (APSCUF) out of $1,493,629. Buchanan executed a scheme to defraud the Pennsylvania Faculty Health and Welfare Fund (The Fund) between 2007 and 2017 by his submission of false, inflated invoices for the services his company, Actuaries, Consultants and Administrators, Inc. (ACA), provided The Fund in connection with the processing of dental and vision claims submitted by members of the APSCUF Union.
The Fund paid ACA $5.20 for each vision claim it processed and $8.10 for each dental claim it processed. Buchanan routinely and artificially inflated the number of claims it allegedly processed for The Fund between 2007 and 2017 that resulted in a $1,493,629 overpayment to ACA.
Upon the conclusion of the guilty plea proceeding, Judge Rambo released Buchanan on his own recognizance pending preparation of a presentence report. No date has yet been scheduled for sentencing.
Read more: https://www.justice.gov/usao-mdpa/pr/former-harrisburg-businessman-pleads-guilty-defrauding-pennsylvania-college-faculty