Defendant Name: Tenet Healthcare Corporation

Defendant Type: Public Company

Document Reference: LR-20067

Document Details

Legal Case Name SEC v. Tenet Healthcare Corporation, David L. Dennis, Thomas B. Mackey, Christi R. Sulzbach, and Raymond L. Mathiasen
Document Name Litigation Release No. 20067
Document Date 02-Apr-2007
Document Format Civil Proceeding
Case Number 07-cv-02144
Federal District Court California, Central District of California
AAER 2591
Allegation Type Issuer Reporting and Disclosure
Document Summary The Commission stated: "On April 2, 2007, the [SEC] filed civil fraud charges in federal district court against Tenet Healthcare Corporation and its former chief financial officer and co-president, its former chief operating officer and co-president, its former general counsel and chief compliance officer, and its former chief accounting officer for failing to disclose that Tenet's strong earnings growth from 1999 to 2002 was driven largely by its exploitation of a loophole in the Medicare reimbursement system. . . To settle the charges, Tenet agreed to pay a civil penalty of $10 million."

Disgorgement & Penalty Information

Resolutions
Enjoinment
Monetary Penalties:

Civil Penalty

Individual:     $10,000,000.00 Shared:    

Related Documents:

comp20067 02-Apr-2007 Complaint
Complaint for Violations of the Federal Securities Laws
The SEC stated: "From 1999 through 2002, Tenet engaged in an unsustainable strategy to improve its earnings by deliberately exploiting a loophole in Medicare's reimbursement system."
court_doc6_07-cv-02144 04-Apr-2007 Court Docket Document
Final Judgment as to Defendant Tenet Healthcare Corporation
The Court stated: "Defendant Tenet Healthcare Corporation . . . consented to the Court's jursdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction)."
LR-21205 11-Sep-2009 Litigation Release
Litigation Release No. 21205
The SEC stated: "On September 10, 2009, the Commission accepted a settlement offer from Thomas B. Mackey, the former co-president and chief operating officer of Tenet Healthcare Corporation and the sole remaining defendant in an action brought by the Commission on April 2, 2007. . . The Complaint alleges that Mackey, of Kewsick, Virginia, was the principal architect of Tenet's scheme to inflate its earnings by exploiting Medicare's outlier reimbursement regulations, which provided from additional reimbursement to hospitals to cover the additional costs for treating extraordinarily sick patients."

Related Actions:

In the Matter of Christi R. Sulzbach
Christi R. Sulzbach