RP firm in US health insurance scam starts selling assets
TO PAY US GOVT $100M
The Philippine company ordered by a United States federal judge to pay back the $100 million it swindled from the US military's health insurance program stopped operating in July 2006 and has since been working to sell its assets and turn over the proceeds to the US government.
"As part of our commitment, we have ceased operations in July 2006. The current board has been up to its task in disposing the assets in the Philippines. That's the US precondition [in the settlement]," Aaron Baesa, vice president of Health Vision Corp. (HVC), told the Inquirer on Saturday.
"Other HVC companies in the US and residential houses are also up for sale. Another group is handling that," Baesa said in a telephone interview from the Subic Bay Freeport, where HVC is based.
He said the settlement, worth $5 million, was the result of a plea bargain agreement made by Thomas Lutz, former president of HVC, after his deportation to the US in 2006.
"After the $5 million has been paid, the proceeds from the asset shares would go to the US government after we have paid our creditors," Baesa said.
HVC owes more or less P60 million to its creditors in the Philippines, he said.
He could not give further information on the settlement, saying the details were with the US Department of Justice.
The order by US District Judge Barbara Crabb for HVC to pay $99.9 million was "actually a welcome development to us for we can now freely address the disposal without fear of being charged [with] contempt," Baesa said.
Asked if HVC has that amount, he said: "Wala siguro (Perhaps not). I don't think it can do that much."
The company has not yet fixed the value of all its assets, which include four hospitals that it partly owns.
One of these is the former Philippine International Hospital (PIH) in Angeles City, north of this Pampanga city. It is the subject of a court dispute involving Janice Thieke, the wife of one its incorporators, Dennis Ray Thieke Sr.
The case involves alleged usurpation of authority to constitute a new board. Dennis Ray Thieke Jr., a son of Thieke by his first wife, constituted the Baesa-led board in 2006.
"The court can direct an inventory if ever we win the case," Baesa said.
Valued at P450 million in 2006, the 141-room PIH may not amount to that appraisal now, Baesa said.
He said some equipment was taken out of the PIH after the alleged "takeover" by the elder Thieke's second wife, Janice, and her business partners Mauro Fajardo, Mark Smith, and Reynaldo Pineda.
Smith and Pineda are known to be close to Pampanga Representative Carmelo Lazatin, but Baesa said he would neither confirm nor deny if Lazatin was among the owners of PIH.
Lazatin, in a phone interview on Saturday, said he knew Smith and Pineda but denied that he was a stockholder of PIH or the Divine Shepherd Medical Center, which is leasing the PIH building.
Not one of HVC's assets has been sold so far but negotiations are being undertaken, Baesa said.
He said the current board of the HVC "cooperated" with investigators from the US Department of Defense.
Investigators invited some directors of the board to a conference held in March or April 2007 to "validate some questions."
Corporate secretary Corazon Coronel Luttrell and board member Ansbert Joaquin, who is an Inquirer correspondent, did not attend that conference, he said.
No member of the board went to the US to testify in court.
"It was Lutz who assumed everything as president and director of HVC (before the current board was constituted)," Baesa said.
The board earlier showed the records to investigators, he said.
Asked if the current board was liable for the unlawful transactions of the past board, Baesa said: "We only cooperated in matters during our incumbency. We have nothing to do with past transactions of the HVC."
According to him, HVC has not handled Tricare patients from 2004 up to July 2006.
Tricare is a US government agency in charge of the health care system for its veterans and dependents. There are a number of veterans and their dependents living around Angeles City, host to the US Air Force's Clark Air Base until 1991.
Aside from maintaining the four hospitals that it partly owns, HVC has 20 accredited private hospitals and 20 accredited doctors from all over the country, Baesa said.
He said he did not know how many patients HVC treated or handled since its incorporation in 1997.
Dr. Adelfo Tuazon, former PIH administrator, told the Inquirer that the unpaid professional fees of HVC to PIH doctors were estimated at between P38 and P39 million at the time the HVC board led by Janice Thieke relieved him as hospital administrator in 2006.
Tuazon said he was removed from his post because he was persistent in demanding payment of the doctors’ fees. By Tonette Orejas - Inquirer Central Luzon Desk
The Philippine company ordered by a United States federal judge to pay back the $100 million it swindled from the US military's health insurance program stopped operating in July 2006 and has since been working to sell its assets and turn over the proceeds to the US government.
"As part of our commitment, we have ceased operations in July 2006. The current board has been up to its task in disposing the assets in the Philippines. That's the US precondition [in the settlement]," Aaron Baesa, vice president of Health Vision Corp. (HVC), told the Inquirer on Saturday.
"Other HVC companies in the US and residential houses are also up for sale. Another group is handling that," Baesa said in a telephone interview from the Subic Bay Freeport, where HVC is based.
He said the settlement, worth $5 million, was the result of a plea bargain agreement made by Thomas Lutz, former president of HVC, after his deportation to the US in 2006.
"After the $5 million has been paid, the proceeds from the asset shares would go to the US government after we have paid our creditors," Baesa said.
HVC owes more or less P60 million to its creditors in the Philippines, he said.
He could not give further information on the settlement, saying the details were with the US Department of Justice.
The order by US District Judge Barbara Crabb for HVC to pay $99.9 million was "actually a welcome development to us for we can now freely address the disposal without fear of being charged [with] contempt," Baesa said.
Asked if HVC has that amount, he said: "Wala siguro (Perhaps not). I don't think it can do that much."
The company has not yet fixed the value of all its assets, which include four hospitals that it partly owns.
One of these is the former Philippine International Hospital (PIH) in Angeles City, north of this Pampanga city. It is the subject of a court dispute involving Janice Thieke, the wife of one its incorporators, Dennis Ray Thieke Sr.
The case involves alleged usurpation of authority to constitute a new board. Dennis Ray Thieke Jr., a son of Thieke by his first wife, constituted the Baesa-led board in 2006.
"The court can direct an inventory if ever we win the case," Baesa said.
Valued at P450 million in 2006, the 141-room PIH may not amount to that appraisal now, Baesa said.
He said some equipment was taken out of the PIH after the alleged "takeover" by the elder Thieke's second wife, Janice, and her business partners Mauro Fajardo, Mark Smith, and Reynaldo Pineda.
Smith and Pineda are known to be close to Pampanga Representative Carmelo Lazatin, but Baesa said he would neither confirm nor deny if Lazatin was among the owners of PIH.
Lazatin, in a phone interview on Saturday, said he knew Smith and Pineda but denied that he was a stockholder of PIH or the Divine Shepherd Medical Center, which is leasing the PIH building.
Not one of HVC's assets has been sold so far but negotiations are being undertaken, Baesa said.
He said the current board of the HVC "cooperated" with investigators from the US Department of Defense.
Investigators invited some directors of the board to a conference held in March or April 2007 to "validate some questions."
Corporate secretary Corazon Coronel Luttrell and board member Ansbert Joaquin, who is an Inquirer correspondent, did not attend that conference, he said.
No member of the board went to the US to testify in court.
"It was Lutz who assumed everything as president and director of HVC (before the current board was constituted)," Baesa said.
The board earlier showed the records to investigators, he said.
Asked if the current board was liable for the unlawful transactions of the past board, Baesa said: "We only cooperated in matters during our incumbency. We have nothing to do with past transactions of the HVC."
According to him, HVC has not handled Tricare patients from 2004 up to July 2006.
Tricare is a US government agency in charge of the health care system for its veterans and dependents. There are a number of veterans and their dependents living around Angeles City, host to the US Air Force's Clark Air Base until 1991.
Aside from maintaining the four hospitals that it partly owns, HVC has 20 accredited private hospitals and 20 accredited doctors from all over the country, Baesa said.
He said he did not know how many patients HVC treated or handled since its incorporation in 1997.
Dr. Adelfo Tuazon, former PIH administrator, told the Inquirer that the unpaid professional fees of HVC to PIH doctors were estimated at between P38 and P39 million at the time the HVC board led by Janice Thieke relieved him as hospital administrator in 2006.
Tuazon said he was removed from his post because he was persistent in demanding payment of the doctors’ fees. By Tonette Orejas - Inquirer Central Luzon Desk
Labels: Health Visions, hvc, subic bay freeport, tricare
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