Fraudulent Scheme Costs South Carolina Over $8 Million, Two Men Plead Guilty

COLUMBIA, S.C. – Fraud Scheme Lands Two Men in Hot Water

In a startling turn of events, COLUMBIA, South Carolina, has become the center of a significant fraud case involving a couple of men who took advantage of a government contract, leading to a hefty loss for the state. Richard Kirchner, 71, and Brian Devanney, 66, recently pled guilty to a scheme that bilked the South Carolina Department of Health and Human Services out of more than $8.1 million over several years. Talk about shaking things up in the community!

How It All Went Down

According to a federal indictment issued on July 10, Kirchner and Devanney were managers at Conduent State Healthcare LLC, a company that had a contract with the state to assist callers with questions related to Medicaid. They devised a plan that involved manipulating metrics in their contract to claim higher funds than they deserved. The contract required that 80% of calls be answered within 60 seconds—a benchmark that was crucial in determining how much money they would receive.

Now, here’s where things got a bit sticky. Rather than genuinely assisting callers, Kirchner and Devanney resorted to using technology to fabricate calls. This deception allowed them to overbill the South Carolina agency. Can you imagine the layers of dishonesty involved in that?

The Puppet Masters: Who’s Who?

So, who were these men pulling the strings? Kirchner, hailing from Branchburg, New Jersey, served as the Training Quality and Assurance Manager. Devanney, a resident of Lexington, held the position of Executive Account Manager. Both men signed their names to documents that misrepresented the number of calls and their response times, which significantly inflated the amount billed to the state.

A Glimpse into the Investigation

The fraudulent activity may have continued unchecked, but things took a turn in June 2023. Conduent shocked everyone when they voluntarily informed the United States Attorney’s Office about the counterfeit reports. This self-disclosure sparked an investigation that didn’t waste any time in revealing the extensive fraud.

In a statement issued by the U.S. Attorney for the District of South Carolina, Adair F. Boroughs noted, “Protecting taxpayer dollars from such fraud and abuse is an important part of our work.” She also emphasized the virtues of integrity in government contracting, and how the situation underscored the importance of voluntarily reporting wrongdoing.

What Happens Next?

With Kirchner and Devanney having entered guilty pleas, the spotlight now turns to their impending sentencing. While the exact repercussions of their actions remain to be seen, it’s clear that the repercussions of this case will ripple through the community and beyond. It’s a lesson in accountability and a reminder that those who work in public service must hold themselves to the highest standards of integrity.

Concluding Thoughts

Fraud cases like this can leave a sour taste in the mouths of taxpayers who expect their government resources to be managed responsibly. As the dust settles from this scandal, it serves as a potent reminder of the importance of vigilance and ethics in all aspects of government contracting. The residents of Columbia and South Carolina as a whole can take solace that actions are being taken to recover lost funds and ensure such incidents do not happen again in the future.

As the story continues to unfold, one can only hope that this case will pave the way for improved regulations and practices that will protect public funds and restore faith in government services.