A health care provider accused of laundering more than $1 million in healthcare payments is set to appear before the U.S. Securities and Exchange Commission.
According to court documents filed Friday in New York, Dr. Robert T. Sussman, a former medical director at a large hospital in California, laundered medical costs between 2011 and 2016.
The allegations in the lawsuit allege that between December 2012 and January 2017, Sussmans company, Strayer Healthcare, paid the health care of more than 2,500 people, including children, pregnant women and seniors.
Sillman, who has been indicted in the United States, denies the allegations.
Sussman pleaded not guilty to the charges on Thursday, according to court records.
The court papers allege that Sussmen laundered nearly $2 million through Strayers health care network in California from 2015 through 2019.
Stray, which has been the subject of a government-wide investigation since February 2017, says the allegations are false.
The Stray Health Network (SHN) was founded in 2013, according a Stray website.
Its health system serves more than 400,000 people, mostly in California.
The network has more than 20 hospitals and more than a dozen outpatient clinics, according its website.
In a statement, St. Joseph’s Health System, which owns the network, said it is cooperating with the investigation.
“We take seriously our responsibility to provide quality care for our patients, including those who are critically ill, and have zero tolerance for any illegal activity,” it said.
“In accordance with the laws of our state, we are cooperating fully with this investigation.”
The SEC filed an investigation with the California Attorney General’s Office after the San Diego Union-Tribune published the allegations against Sussmann in October.
The Union-Telegram reported that a whistleblower told investigators that Stray Healthcare’s healthcare systems in California and Florida were also used to funnel payments to SussMAN.
In addition to the San Francisco-based company, Sillmans company has been sued in other states.
In 2015, a judge ordered the company to pay $25 million to the family of a man who died from HIV infection after being exposed to Sillmann’s medical care.
SILLMAN, who died in April, was found to have concealed HIV infection, which was confirmed through blood tests.
The company has since been ordered to pay another $50 million to his family.
In 2015, SILLMANS lawyers filed a lawsuit in Florida that sought to prevent a similar investigation from taking place in the state.