Powell ex-hospital chief to settle fraud lawsuitSep 4, 2013 The Associated Press
POWELL -- Powell Valley Healthcare's former CEO has agreed to pay $3.5 million to settle a lawsuit filed against him alleging fraud.
Paul Cardwell signed a proposed settlement agreement Aug. 22 in which he admits liability for the money, but makes no admission to the allegations against him. A judge still needs to approve the settlement, which would cancel a pending civil trial.
HealthTech Management Services filed the lawsuit. The company provides management at Powell Valley Healthcare.
Cardwell still faces a criminal trial and is in custody.
An indictment alleges Cardwell would arrange for hospital funds to be sent to a bogus recruiting firm supposedly run by Michael Plake of West Lafayette, Ind., but the money went to Plake and Cardwell instead. Plake is serving a 30-month sentence.