Two maintenance managers employed by Memorial Regional Hospital in Hollywood, Fla., have been charged with accepting at least $625,000 in kickbacks from inflated invoices filed by contracted vendors, according to a Sun Sentinel news report.
As maintenance managers, Elliot Gordon and Anthony Merola had the authority to award contracts under $10,000 to vendors without taking bids. Mr. Gordon and Mr. Merola allegedly caused the vendors to inflate invoices submitted to Memorial Regional and proceeded to pocket a portion of the payment as kickbacks, according to the report.
Mr. Gordon specifically received cash kickbacks amounting to more than $418,000 that the contractors paid to two companies he set up in the names of his relatives. He also contracted a vendor to remodel a cystic fibrosis unit in the hospital and inflated the price by $70,000. That amount was used to install marble floors in his house, according to the report.
Mr. Merola also had his associates set up two companies to which contractors paid approximately $200,000. Contractors also remodeled his garage into a recreation room and installed new floors in his home, according to the report.
Both individuals failed to report income and home improvement worth hundreds of thousands of dollars. The names of the contractors who allegedly paid the kickbacks and reasons charges were not filed against them were not disclosed in the report.
Hospital officials would not comment on the recent accusations against Mr. Gordon and Mr. Merola.
Read the Sun Sentinel news report about Elliot Gordon and Anthony Merola alleged kickback schemes.
Read other coverage about kickback schemes:
- Kos Pharmaceuticals Will Pay $41M to Settle Kickback, Off-Label Promotion Allegations
- Ameritox Settles $16M Lawsuit Over Allegations of Paying Kickbacks to Physicians
As maintenance managers, Elliot Gordon and Anthony Merola had the authority to award contracts under $10,000 to vendors without taking bids. Mr. Gordon and Mr. Merola allegedly caused the vendors to inflate invoices submitted to Memorial Regional and proceeded to pocket a portion of the payment as kickbacks, according to the report.
Mr. Gordon specifically received cash kickbacks amounting to more than $418,000 that the contractors paid to two companies he set up in the names of his relatives. He also contracted a vendor to remodel a cystic fibrosis unit in the hospital and inflated the price by $70,000. That amount was used to install marble floors in his house, according to the report.
Mr. Merola also had his associates set up two companies to which contractors paid approximately $200,000. Contractors also remodeled his garage into a recreation room and installed new floors in his home, according to the report.
Both individuals failed to report income and home improvement worth hundreds of thousands of dollars. The names of the contractors who allegedly paid the kickbacks and reasons charges were not filed against them were not disclosed in the report.
Hospital officials would not comment on the recent accusations against Mr. Gordon and Mr. Merola.
Read the Sun Sentinel news report about Elliot Gordon and Anthony Merola alleged kickback schemes.
Read other coverage about kickback schemes:
- Kos Pharmaceuticals Will Pay $41M to Settle Kickback, Off-Label Promotion Allegations
- Ameritox Settles $16M Lawsuit Over Allegations of Paying Kickbacks to Physicians