Former Amedisys Exec Charged in $7.6 Million Fraud Scheme
A former executive of one of the nation’s largest home health providers, Amedisys Inc. (Nasdaq: AMED), has been charged in connection with a scheme bilking the company out of more than $7.6 million.
David Michael Pitts, 41, is charged in a Bill of Information with wire fraud related to the scheme, which is supposed to have occurred between October 2006 and May 2014, according to the U.S. Attorney’s Office for the Middle District of Louisiana. A Bill of Information is an accusation made by the U.S. Attorney.
Pitts served as vice president of tax for Amedisys from January 2005 through July 2014, according to the Bill of Information, during which time he was responsible for all corporate tax matters, including the preparation of state and federal tax returns and the payment of state income taxes across the states where Amedisys operates. He allegedly had the authority and ability to purchase tax credits to do so.
As part of the scheme, Pitts created two counterfeit companies named “Stonehenge Entertainment” and “Evergreen Incentives” to sell false and fictitious tax credit transfer agreements to Amedisys, according to the Bill of Information. He is also accused of opening and maintaining two separate bank accounts for the funds.
Pitts then allegedly brought the agreements to his supervisors for approval, claiming them as valid tax credits. Upon approval, he purchased them on behalf of Amedisys, but diverted funds stemming from an Amedisys account to his two created bank accounts via 21 wire transfers totaling over $7.6 million.
The funds were used for Pitts’ personal enrichment, the Bill of Information states.
Written by Kourtney Liepelt