Port Matilda man going to prison for embezzling health funds

Posted: 12:01am on Aug 31, 2011; Modified: 6:21am on Aug 31, 2011

WILLIAMSPORT — The head of a State College medical billing firm who admitted embezzling $2.46 million in health insurance reimbursements from two cancer treatment centers has been sentenced to 37 months in prison.

U.S. Middle District Chief Judge Yvette Kane told Ronald A. McFarland, 54, of Port Matilda, he had wreaked havoc on the business affairs of the people who trusted him the most during Tuesday’s sentencing.

His sentence also included two years of supervised release and the requirement he make restitution of money embezzled from the centers. McFarland is to report to prison on Sept. 20.

McFarland’s attorney, Jeffrey W. Stover, of Bellefonte, argued unsuccessfully for a maximum period of five years probation so his client could get into the workforce and address restitution. Stover noted McFarland was trying to save his business and did not buy items of luxury.

Assistant U.S. Attorney George J. Rocktashel argued for a sentence within the guidelines, the minimum of which was 37 months.

Kane rejected the argument for probation, saying it was not warranted because McFarland engaged in a scheme of embezzlements and forgeries over a period of time. She acknowledged his cooperation with investigators.

McFarland was president of Verimed Services Inc. and Medical Alliance Partners, of State College, that provided third-party billing services to Rosewood Cancer Care Inc., of Pittsburgh, and Oaktree Cancer Care Inc., of East Liverpool, Ohio. The two centers provided outpatient radiation treatment programs for cancer patients.

Verimed was supposed to bill health insurance plans for medical treatment provided to patients, then record and forward checks received to Rosewood and Oaktree.

From January 2007 through December 2009, however, he diverted checks intended for the two cancer centers. He forged the signature of an officer of the two centers, deposited the checks into Verimed accounts and provided falsified logs and ledgers to the centers.

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