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Indiana man sentenced in hospital fraud case

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press
Wednesday, May 8, 2013 - 7:58 am

POWELL, Wyo. — An Indiana man has been sentenced to 30 months in federal prison for his role in defrauding hospitals in Wyoming and Indiana out of nearly $1.7 million.

The Powell Tribune reports a federal judge on Monday also ordered Michael J. Plake of West Lafayette to spend three years on supervised release after his prison term.

Plake had pleaded guilty to two counts of conspiring to commit mail fraud and one count of conspiring to launder money.

An indictment alleged that Paul Cardwell, who was the former CEO of Powell Valley Healthcare in Wyoming and the former White County Memorial Hospital in Indiana, funneled hospital funds to a bogus staff recruiting firm that Plake supposedly ran, and that the men split the money.

Cardwell's whereabouts are unknown.