The Wall Street Journal (behind the wall) notes this about recent SEC rulings on Unitedhealth backdating options for executives.
“The company’s former General Counsel, David J. Lubben, agreed to a $575,000 penalty in the case.”
“Mr. Lubben also will repay $1.4 million in gains and $347,211 in prejudgment interest. In addition, he agreed to an order barring him from serving as an officer or director of a public company for five years and from appearing before the SEC as an attorney for three years.”
This is not the first time this company has moved money from patient care to executive compensation:
“A year ago, in one of the largest executive-pay givebacks in history, former UnitedHealth Chief Executive William McGuire agreed to forfeit about $620 million in stock-options gains and retirement pay to settle civil and federal-government claims related to stock-option backdating.”
This type fraud while not on the Madoff level does raise the question of who the company is in business to serve. Patients or executives? Until now it appears to be the latter and Medicynic is not optimistic that this will change.
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