Steward Health Care facing criminal investigation in the US - CBS
Federal authorities in Boston have opened a criminal investigation into Steward Health Care, a company that owns dozens of hospitals nationwide, including nine in Massachusetts, CBS reports.Federal prosecutors at the U.S. Attorney's office in Boston
Federal authorities in Boston have opened a criminal investigation into Steward Health Care, a company that owns dozens of hospitals nationwide, including nine in Massachusetts, CBS reports.
Federal prosecutors at the U.S. Attorney's office in Boston are investigating Steward Health Care based on various allegations including fraud and violations of the Foreign Corrupt Practices Act, two people familiar with the matter said.
The law prohibits U.S. citizens and entities from engaging in corrupt activities when operating overseas, CBS reports.
The Department of Justice did not immediately respond to CBS News' request for comment.
Reached Thursday, a spokesperson for Steward had no comment.
Steward filed for bankruptcy reorganization in May and is exploring plans to sell all of its hospitals. Bids for the Massachusetts facilities, which have remained opened during the bankruptcy, are due on Monday.
Steward Health Care administered three public hospitals in Malta after taking over a concession which the government had previously given to Vitals Global Healthcare. A court last year annulled the deal after finding fraud, and the hospitals returned under government administration.
The government and Steward are in international arbitration. The government is demanding repayment of funds which were handed over to Steward to run the three hospitals, while Steward is seeking compensation for the cancellation of the concession agreement.
CBS report may be read in full hereRelated
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