Fraud Scheme Uncovered in South Carolina Government Contracting, Defrauding State of $8.1 Million

COLUMBIA, S.C. – A Case of Fraud Uncovered in Government Contracting

In a startling turn of events in the South Carolina capital, two men have admitted to engaging in a scheme that defrauded the state of a whopping $8.1 million. The pair, Richard Kirchner, 71, and Brian Devanney, 66, were both linked to Conduent State Healthcare LLC, a company responsible for assisting Medicaid callers.

The Details of the Indictment

According to a federal indictment revealed in July, Kirchner acted as the Training Quality and Assurance Manager while Devanney served as the Executive Account Manager. It seems these two were not just managing calls; they were allegedly manipulating them. Their clever yet illicit plan involved inflating the number of calls Conduent handled in order to line their pockets with taxpayer money.

The core of the contract stipulated that 80% of all calls were to be answered within 60 seconds. If achieved, this would unlock additional funding tied to the volume of calls received. However, instead of meeting these requirements honestly, Kirchner and Devanney resorted to “fabricated calls” created through clever technology, misleading the South Carolina Department of Health and Human Services (SCDHHS).

Conduent’s Response to Fraud

On June 8, 2023, Conduent made a bold move by reaching out to the United States Attorney’s Office. They finally admitted to the fraudulent activities and, most importantly, cooperated fully with subsequent investigations. The company took immediate steps by informing SCDHHS of the fraud, suspending their invoices, and terminating both Kirchner and Devanney’s employment.

Reflecting on the situation, the executives at Conduent expressed their commitment to integrity and responsibility. They even took the honorable step of returning the ill-gotten funds, showcasing that there are still companies willing to prioritize ethics over profit.

A Message from the U.S. Attorney

The U.S. Attorney for the District of South Carolina, Adair F. Boroughs, articulated a strong message regarding fraud prevention. “Protecting taxpayer dollars from such fraud and abuse is an important part of our work,” Boroughs stated in a recent press release. He emphasized how crucial integrity is within government contracting and the benefits that arise from voluntary self-disclosure by companies. This incident serves as a reminder that government healthcare programs must be protected robustly.

Looking Ahead

As of now, both Kirchner and Devanney await sentencing for the charges against them. The cloud of their fraud has cast a shadow over their careers and has stirred governmental scrutiny about how contracts are managed and monitored in the future.

This case is a significant lesson in accountability. As taxpayers, it is crucial for the public to be aware of how their money is being spent and to ensure that steps are in place to prevent similar deeds from happening again.

Staying Informed

As the situation unfolds, those in Columbia, and beyond, are encouraged to stay informed on issues like this, as they directly affect our communities and the trust we place in service providers. Let’s keep fostering an environment that values transparency and fairness in all dealings, especially when it comes to taxpayer money.