Two locals have been indicted — along with two former business partners — on various charges of conspiracy, fraud and embezzlement related to Smart Data Solutions, a venture that marketed itself as a health insurer. But SDS wasn't properly licensed anywhere and Bart and Angela Posey are now facing a 57-page indictment.
According to the indictment, the company accepted more than $28 million in health care coverage premiums but denied and rejected legitimate claims. More than $5.4 million of the money was diverted for the defendants’ personal use, the indictment claims.
SEE ALSO: Our past coverage of Smart Data
Fewer than nine months after uncovering the $215 million Peregrine Financial Group fraud, Confirmation.com's electronic audit confirmation service was used to uncover the financial fraud committed by hedge fund owner and operator James A. Shepherd.
Shepherd recently pled guilty to stealing millions of dollars from more than 100 investors over a seven-year period. Read more here.
"The Shepherd fraud is almost identical to the Russell Wasendorf PFGBest fraud," Chris Schellhorn (pictured), Confirmation.com CEO said in a release (read more here). "Just like Wasendorf's 20-year fraud, for over seven years Shepherd used readily available software tools to create fake bank statements, he directed the auditors to send bank confirmation letters to a PO Box he had rented, forged a fictitious bank employee's signature, and he sent the fraudulent audit confirmations back to the auditor."
Confirmation.com is based in Brentwood.
A ruling is expected today on a request by attorneys for the state to freeze the bank accounts of HRC Medical Centers founders Don Hale and Dan Hale. The state wants to use the money in the accounts to compensate people who signed up for HRC's allegedly dangerous hormone treatment therapies.
In court Friday, attorneys for the Hales argued that freezing their personal accounts would be a drastic and extreme measure. They also said the money the Hales received from the company was not used for personal gain, but rather used to pay taxes.
A former employee of a Hendersonville electronic health records developer has been indicted for stealing more than $60,000 from the company.
Roger Finchum Sr. allegedly took money from MedRx Systems’ account at SunTrust Bank for purchases of snacks, gas and groceries in mid-2011. In April of that year, Finchum had been listed as a director of MedRx in a Securities and Exchange Commission filing when the company was in the pre-revenue stage.
Finchum previously was involved in Snapshot Inc., a Goodlettsville-based security industry company, as well as graphics services company Colorsmart.com. He tried to take both ventures public more than a decade ago. Check out his indictment here.
Stan Hayes, the former manager for Wilson Bank & Trust's Murfreesboro branch, is bringing more headaches to the bank's leadership. Murfreesboro bar owner Amanda Gallagher and Tony Hinson have sued the bank over Hayes' actions, which Gallagher says have resulted in two foreclosures and almost $3 million in damages. In a piece in the Murfreesboro Post, Gallagher's tone is a lot stronger than that of home builder Ken Howell.
“I was never late on any payment,” Gallagher said. “Yet, they immediately placed the loan into default with the first month of the loan and began charging me 18 percent interest without my knowledge. They never sent a letter or called me, and even today, I have been unable to obtain documentation that shows I defaulted on my loan.”
A Rutherford County jury has ordered Wilson Bank & Trust to pay $7.5 million in compensatory and punitive damages to home builder Ken Howell, his wife and two of his companies. Howell had sued after former Wilson branch manager Stan Hayes had manipulated his entities' loan accounts by forging signatures. The bank may appeal the verdict; Howell says he simply wants to close the book on the episode.
“They need to make the victims whole, and we both need to move on,” Howell said. He noted that he owes several local companies money after closing his business and plans to “square up” his accounts.