CHARLOTTE, NC -- The following information was released by the United States Attorney's Office for the Western District of North Carolina:
Edward Gerard Payton Faces 20 Years in Federal Prison CHARLOTTE, NC - Edward Gerard Payton, 52, of Charlotte, NC, has entered a guilty plea today to knowingly and willfully converting without authority moneys, funds, property and assets of the non-profit community mental health agency he oversaw. Joining Anne M. Tompkins, U.S.Attorney for the Western District of North Carolina, in making today's announcement are Mark A. Morgan, Acting Special Agent in Charge of the Federal Bureau of Investigations, Charlotte Division, and Jeaninne A. Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division.
According to a two-count superseding bill of information, Payton embezzled and unlawfully converted at least $147,000 from Mecklenburg County Open Door (MOD), a non-profit community mental health agency in Charlotte which provides mental health services and housing to area mentally ill individuals. The criminal information charged Payton with embezzling and unlawfully converting monies and assets from the health care benefit program. Additionally, the superseding bill of information alleges that Payton used an MOD corporate credit card and automobile for his personal use, in violation of MOD policy. As part of his plea agreement, Payton has agreed that the total loss resulting from his criminal conduct at MOD was between $70,000 and $120,000 and that, as part of his criminal conduct, he abused his position of trust while employed at MOD. Payton faces a combined maximum term of 21 years in a federal prison, and a maximum fine of $350,000. He has also agreed to make full restitution to MOD and to the IRS for the tax years 2007-2009.
The investigation and prosecution of Payton is a product of the recently formed Health Care Fraud Task Force, a multi-agency team tasked with combating and eliminating health care fraud in the Western District of North Carolina. The work of the Task Force includes federal criminal prosecutions, such as the prosecution against Payton, and focuses on information sharing, following trends in health care fraud, staffing whistle blower complaints, and working specific investigations. It is made up of representatives from FBI, HHS Office of Inspector General, DEA, IRS, US Postal Inspection Service, US Secret Service, the NC Attorney General's Medicaid Investigations Unit, the NC Department of Insurance, and the NC State Bureau of Investigation. The Task Force is committed to building upon long standing law enforcement partnerships with the goal of successful prosecutions in order to reduce fraud and recover taxpayer dollars.
'As the Executive Director of MOD, Payton took advantage of the trust that was placed in him to run an agency that provides important services to our community. Today's guilty plea insures that Payton pays for abusiUnited States Attorneys Office - Western District of North Carolinang that trust for personal gain. It is also an important win in the fight against health care fraud in our District,' said U.S. Attorney Tompkins. 'Through the work of the Task Force, we will continue to investigate and prosecute health care fraud schemes and protect the integrity of our healthcare system against those who try to defraud it,' Tompkins added.
'Edward Payton not only took money, but he took away the faith of the mentally ill patients he was hired to help. The FBI will continue to work along side our law enforcement partners through the use of the Health Care Fraud Task Force to diligently go after fraudsters who would rather line their own pockets than use the money for those in need,' said Acting Special Agent in Charge Morgan, of the Charlotte Division of the FBI.
IRS-CI Special Agent Hammett stated, 'Health care fraud is a serious offense. Those who believe they can defraud the government and get away with it will find that they will be caught. IRS Criminal Investigation special agents along with their task force counterparts will seek out those who commit fraud and make sure they do not profit from their misdeeds.'
A sentencing date for Payton, who remains free on bond, has not been set yet. The investigation was led by FBI and IRS Special Agents. The prosecution for the government was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney's Charlotte Office.
