Powell Valley Healthcare's former CEO has agreed to pay $3.5 million to settle a lawsuit filed against him alleging fraud. Paul Cardwell signed a proposed settlement agreement Aug. 22 in which he admits liability for the money, but makes no admission to the allegations against him. A judge still needs to approve the settlement, which would cancel a pending civil trial. HealthTech Management Services filed the lawsuit. The company provides management at Powell Valley Healthcare. Cardwell still faces a criminal trial and is in custody. An indictment alleges Cardwell would arrange for hospital funds to be sent to a bogus recruiting firm supposedly run by Michael Plake of West Lafayette, Ind., but the money went to Plake and Cardwell instead. Plake is serving a 30-month sentence.
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