Powell Valley Healthcare is joining in litigation against its former CEO Paul Cardwell, who is accused of authorizing about $848,000 in false billings to the hospital. Cardwell and his acquaintance Michael Plake face criminal charges alleging Cardwell authorized paying Plake for staff recruiting work that Plake allegedly never performed. Prosecutors allege that instead, Plake pocketed 25% of what he was paid and kicked the rest back to Cardwell. The men have denied the allegations. The hospital had contracted with HealthTech Management Service Inc. for management services. HealthTech has filed a lawsuit accusing Cardwell and Plake of embezzlement. The hospital is now participating in a claim against Cardwell, Plake and HealthTech, which it accuses of failing to properly oversee Cardwell's work.
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