Cox administrators named in investigation

Former Cox CEO Larry Wallis and former Cox Chief Financial Officer Larry Pennel are named as targets of the investigation by the U.S. Department of Health and Human Services, the Office of Inspector General and the Office of Investigations.

Cox employee David Tapp, Cox corporate compliance officer Betty Breshears and Cox CEO Robert Bezanson are named as subjects in the investigation into allegations that Cox committed Medicare fraud.

In a memo to Cox employees, Bezanson noted the difference between a “target” and a “subject” of the investigation. A “target” is someone believed to be substantially linked to a crime, while a “subject” only falls into the scope of investigation, he said in the memo.

Bezanson also said Cox intends to file a motion of its own with the court in support of the government’s motion.

The government went public with the names in its motion to halt a lawsuit against Cox filed by two former employees who say they were wrongly terminated.

The motion states that “any discovery sought in this case will interfere with the government’s investigation” and asks for a “stay of all discovery” until the investigation is complete.

According to the motion, government agents since at least December 2004 have been investigating allegations that Cox illegally billed Medicare for dialysis services and illegally paid physicians who provided the services.

The two former employees associated with the lawsuit, Roger Cochran and Dennis Morris, say they were wrongfully fired for blowing the whistle on the alleged Medicare fraud, according to the motion.

Bezanson said in the memo that Cochran and Morris were fired for misconduct and harassment of other employees.