ALBANY — Eighteen months following his conviction, a retired CEO from a Thomasville hospital has been sentenced to prison time.
At a hearing before U.S. District Judge Louis Sands on Thursday, Ken Beverly, former CEO of Archbold Medical Center, was sentenced to serve 24 months in prison followed by a three-year supervised release period.
He also is expected to pay a $50,000 fine as well as $100 for each of the six counts he was convicted of in December 2010.
During the supervised release, Beverly will not be allowed to possess a firearm and is expected to undergo mental health treatment as well as report financial information to probation officers. In light of the fact that he does not have a history of substance abuse, Sands waived the requirement to undergo drug testing.
The counsel representing Beverly indicated that they would be appealing the sentence.
He has been permitted to self-report to the Bureau of Prisons at date to be determined.
Beverly, 66, had been convicted on six felony counts related to Medicare and Medicaid fraud and obstruction of U.S. District Court.
In a courtroom full of spectators at the C.B. King Courthouse in Albany, defense counsel brought up three character witnesses who have known Beverly in a personal and professional capacity. They stated that the former hospital executive’s commitment to Archbold and the community of Thomasville as a whole was beyond what was expected of him, and that he did his job for the patients rather than for personal gain.
Taking into consideration a perceived positive reputation and the impact a prison sentence might have on Beverly’s family, defense counsel also argued the case for a sentence without jail time.
The prosecution said that, for every positive character witness, there had been a negative character witness stating Beverly had been dishonest and untruthful and that the fraud he committed was deliberate and calculated.
Prosecution attorneys also stated that, in addition to obstructing justice by giving false statements under oath, Beverly had effectively put the hospital’s former chief financial officer, William Sellers, “under the bus” by asking Sellers to fabricate documents so Beverly could point the finger at him.
Sellers, who is said to have cooperated fully in the fraud investigation on Beverly, was sentenced to two years probation and a $5,000 fine after he had entered a guilty plea to three counts of falsifying documents as part of the $13.9 million fraud Beverly had been convicted of committing, a March 2011 news story in The Thomasville Times-Enterprise indicates.
Also at the hearing on Thursday, David Robbins, senior vice president and general counsel for Archbold, was called to the stand and stated that the hospital had paid a total of $1.5 million in private counsel on the case. In addition, $1 million was put toward an internal fraud investigation.
Robbins also confirmed that Beverly walked away from his position at Archbold with $6 million in compensation and benefits, and that he would not have received those benefits had he been convicted before they kicked in.