This week, it was announced that a Solon man had been charged in federal court for his role in a conspiracy to defraud the Cleveland Clinic. It is alleged that 57-year-old Gary Fingerhut defrauding the clinic out of more than $2.7 million. He was charged via criminal information with a single count of conspiracy to commit wire fraud and honest service wire fraud and one count of making false statements.
During the alleged crime, Fingerhut worked at the Cleveland Clinic Innovations. In 2010, he was hired as general manager of information technologies, before becoming executive director in 2013. Fingerhut’s employment with the Clinic was terminated in June of 2015. In 2012, the Cleveland Clinic Innovations created a new subsidiary called Interactive Visual Health Records
Fingerhut hired an individual, who is being referred to as W.R. in court records to work as a consultant. The individual eventually became chief technology officer at IVHR. As a condition of their employment, Fingerhut and W.R. were prohibited from receiving financial benefit or having any personal interest in companies the Clinic did business with.
It is alleged that W.R. and others caused a shell company, iStar FZE LLC, to come to fruition. The company did not perform any services or provide any goods. According to the complaint, W.R. caused iStar to place a big to Clinic to develop and design IVHR’s software. This ultimately increased the price, without disclosing W.R.’s interest in the company.
It is alleged that W.R. frequently paid Fingerhut a referral or commission fee for keeping quiet. The complaint alleged that Fingerhut accepted nearly $469,000 in payments from W.R. between August 2012 and November 2014. The information suggests that W.R., Fingerhut and others diverted more than $2.7 from the Clinic during this time.
At this point in time, the investigation is ongoing.