U.S. prosecutors will try former CEO Todd Farha and four executives of WellCare Health Plans Inc. early next year on charges of defrauding Medicaid. The government says the officials falsified spending data from 2003 to 2007 to circumvent a Florida law requiring managed-care companies to spend on patients at least 80 percent of Medicaid money allocated for mental health care. In that four-year period, Farha sold $57 million of WellCare stock as its share price rose sevenfold. Farha and the four others have pleaded not guilty. WellCare has paid $427.5 million in settlements to government agencies and company shareholders.
Read the full story: Fraud Trial for WellCare Ex-CEO Shows Medicaid Program Abuseclose