Wednesday, February 29, 2012

Powell Valley Healthcare CEO sued for embezzlement

A company hired to provide management services for Powell Valley Healthcare is suing the hospital's former CEO on claims that he allegedly embezzled nearly $850,000 over the course of 6 months. Attorney Scott Klosterman, representing HealthTech Management Services, filed the suit in U.S. District Court last week. The lawsuit alleges Paul Cardwell authorized spending almost $850,000 to recruit physicians and other personnel to Powell Valley. According to the lawsuit, the money was sent to a straw company set up by an acquaintance of the CEO that kicked a substantial amount of Powell Valley Healthcare's money back to Cardwell. Cardwell resigned Sept. 23. The lawsuit states he is believed to be residing in Thailand. It's unclear if he has a lawyer who could comment for him.

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