Thursday, April 12, 2012

Hospital ex-CEO denies embezzlement lawsuit claims

The former CEO of the Powell hospital has denied allegations in a civil suit that he embezzled nearly $848,000 from the hospital's management company. Attorneys for Paul D. Cardwell filed their response on Tuesday. They asked a judge to dismiss the lawsuit filed by HealthTech Management Services. Cardwell also faces federal criminal charges including fraud and conspiracy to commit money laundering. The criminal charges allege Cardwell arranged for the hospital to pay a co-defendant, Michael J. Plake, to recruit physicians and other staff. The indictment claims no work was done but that Plake kept about 25 percent of the money and kicked back the rest to Cardwell. Both pleaded not guilty. A trial is scheduled for June 4 in Cheyenne.

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