Guilty Pleas in Major South Carolina Fraud Case Involving Over $8 Million in Overbilling

COLUMBIA, S.C. – Guilty Pleas in Major Fraud Case

In a shocking turn of events, two men have pleaded guilty to defrauding the state of South Carolina out of millions of dollars. This intriguing case shines a light on the deceptive practices that can happen in government contracting. Richard Kirchner, 71, and Brian Devanney, 66, both held significant managerial positions at Conduent State Healthcare LLC and engaged in a scheme that defrauded the South Carolina Department of Health and Human Services (SCDHHS).

The Scheme Unraveled

According to a federal indictment issued on July 10, this scheme allowed them to overbill the state by an astounding more than $8.1 million. The mechanics of the fraud involved falsifying call metrics to meet contract demands. Conduent had a contract to assist callers with inquiries related to Medicaid, requiring that 80% of all calls be answered within 60 seconds.

But, instead of transparently handling calls, the duo resorted to unethical methods—using technology to fabricate calls. This manipulation allowed Conduent to inflate the amount of financial support they received from the government. The contract’s structure incentivized the company to create more calls, leading to an increase in funds as the value of completed contracts grew.

A Company That Took Responsibility

Things took a turn for the better when, on June 8, 2023, Conduent reported these fraudulent activities to the United States Attorney’s Office. Their decision to voluntarily self-disclose the fraud initiated a comprehensive investigation. Following this revelation, the company took swift action by suspending invoices to the state agency, terminating the employment of Kirchner and Devanney, and beginning the process of returning the funds that were fraudulently obtained.

Protecting Taxpayer Dollars

U.S. Attorney for the District of South Carolina, Adair F. Boroughs, expressed the importance of safeguarding taxpayer funds. “Protecting taxpayer dollars from such fraud and abuse is an important part of our work,” Boroughs stated. He highlighted that this case underscores the significance of integrity in government contracting and demonstrates how voluntary self-disclosure can positively impact the justice process.

What Lies Ahead

As for Kirchner and Devanney, they now await sentencing for their roles in this significant case of fraud. Each faces serious consequences for their actions that compromised trust and resulted in a notable loss to the state. The case invites ongoing discussions about ethical practices in government contracts, urging all parties involved to maintain integrity in their operations.

While this news is disheartening, it is important to see that the wheels of justice are in motion. With organizations like Conduent stepping up and self-reporting fraudulent activities, there is hope for a more transparent and honest contracting process in the future. Such actions can lead to restoring faith in government programs that are intended to help citizens, especially in crucial areas like healthcare.

As we follow this case, the community remains vigilant. Keeping an eye on how government funds are managed is essential for everyone, making it clear that fraud will not go unnoticed. Every individual has a role to play in ensuring transparency and accountability in both public and private sectors.