Olongapo SubicBay BatangGapo Newscenter

Thursday, June 19, 2008

RP health care exec convicted over $100-M fraud

By. Joseph G. Lariosa –Tempo

CHICAGO, Illinois – An American president and chief executive officer of a Philippine-registered Health Visions Corporation (HVC) based in Olongapo City in the Philippines was sentenced Tuesday (June 17) to serve five years in prison for defrauding a U.S. government agency more than $100 million in phony health claims.

Assistant U.S. attorney peter M. Jarosz for the Western District of Wisconsin in Madison, Wisconsin told this reporter over the phone that Thomas Arthur Lutz, 41, got a deferred sentence to give him time to liquidate the assets of HVC so he and the company can repay the restitution amounting to $99 million. He will start serving time on March 18, 2009.

Lutz, whose wife is a Filipina, was sentenced for mail fraud by Chief Judge Barbara B. Crabb or the United States District Court of Western District of Wisconsin in Madison.

Last April 24, 2008, judge Crabb also sentenced the Health Visions Corporation also for mail fraud to liquidate all of its assets and pay $99,915,131 in restitution, $500,000 fine, and forfeit $ 910,910.60. The corporation was placed on probation and was given 10 months to liquidate its assets.

Prosecutors sad the company routinely inflated claims by more than 230 percent, operated a phony insurance program and billed for medical services never delivered.

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