Ted Cain, the former owner of Stone County Hospital, is in court defending himself against charges he misappropriated millions of dollars in Medicare funds.
Assistant U.S. Attorney Angela Williams claimed Cain and his wife, Julie, drew salaries inconsistent with work performed.
Ted Cain received a salary of $15.2 million between 2004 and 2013 while Julie Cain drew a salary of $2.3 million.
Prosecutors argued the couple was inappropriately paid through the reimbursement of charges billed to Medicare.
The alleged fraud was brought to light in a complaint filed by the hospital’s former chief operating officer, James Aldridge.
Aldridge is listed as the, “Relator,” in the case titled, “Aldridge v. Cain,” a civil matter being tried in Federal Court.
The filing explains Aldridge’s role; “A Relator in this context describes a private person who, with knowledge of activities allegedly defrauding the United States Government, files suit to recover monies on behalf of the United States Government. A Relator may share in the proceeds of a successful action, receiving between fifteen percent and twenty-five percent of the recovery, as determined by the court.”
The complaint also lists Cain’s Gulfport-based company, Corporate Management, Inc., Starann Lanier, Tommy Kuluz, and Stone County Hospital.
Lanier served as the chief operating officer and Kuluz as the chief financial officer for Corporate Management.
The prosecution claims Lanier and Kuluz signed off on reports filed with Medicare.
Cain finalized a lease with Memorial Hospital in September and Corporate Management, Inc. no longer operates Stone County Hospital, which is now known as Memorial Hospital at Stone County.
Cain was due to appear in court again on Tuesday and the trial could take as long as three weeks.
U.S. District Judge Henry Wingate of Jackson is presiding over the trial.
Cain is represented by former Mississippi Governor Ronnie Musgrove.