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Saturday, March 12, 2005

Health Canada Official Sentenced for Fraud

Another reminder that the irrestible temptations provided by running a large health care organization with a huge cash flow are not confined to the US, from the Edmonton Sun, and the Globe and Mail...
Paul Cochrane, a former Canadian Assistant Deputy Health Minister, was sentenced to a year in prison for fraud, as part of a plea bargain. Cochrane was in charge of the First Nations and Inuit Health Branch, with a budget of $1.2 billion (Canadian). He inflated funds going to the Virginia Fontaine Addictions Foundation on the Sagkeeng reservation north of Winnepeg from 1994-2000. For example, he unilaterally raised the per diem reimbursement rate paid to one of the foundation's centres, resulting in nearly $1 million in extra revenues. In total, the foundation received about $70 million from Health Canada. In return, Cochrane got "cash, SUVs, $27,000 in exotic travel and NHL tickets." He is still facing charges of tax evasion. Nine others have been charged so far in this ongoing investigation.

Post Title Health Canada Official Sentenced for Fraud