Columbia Man Pleads Guilty to Stealing Over $2.9 Million

COLUMBIA, SC—United States Attorney W. Walter Wilkins stated today that Jerry Francis Wells, Jr., age 47, of Columbia, pled guilty today in federal court as a result of charges brought against him for falsifying documents required to be filed with the United States Securities and Exchange Commission. Wells was the former Chief Financial Officer, Executive Vice-President of Finance, and Secretary of UCI Medical Affiliates, Inc., which manages Doctor’s Care and other medical facilities in South Carolina and Tennessee. During the plea hearing, Wells admitted that from January 2003 through December 2008, he embezzled $2,967,382 from UCI by (1) using UCI's corporate credit card to pay personal expenses; (2) preparing false expense reports and submitting them for reimbursement; and (3) submitting fraudulent check requests for non-business expenses, such as construction work on Wells’ personal residences and payments on personal credit card accounts.

UCI was a publicly traded company, and it was required to file periodic financial reports with the Securities and Exchange Commission. As the CFO, Wells was required to sign these filings on behalf of UCI. On each of eight reports that were submitted to the SEC, Wells falsely stated that he had disclosed to UCI “any fraud, whether or not material, that involves management or other employees who have a significant role in [UCI’s] internal controls over financial reporting.” As a result of these false filings, Wells was charged with, and pleaded guilty to, eight counts of making false statements to a government agency, in violation of Title 18, United States Code, Section 1001.

Senior United States District Judge Matthew J. Perry, Jr., accepted the plea, and he will impose sentence after he has reviewed a presentence report which will be prepared by the U.S. Probation Office. The maximum penalty Wells can receive on each count is a fine of $250,000 and imprisonment for five years. He will also be ordered to repay the money he stole from UCI.

In addition to the criminal charges, Wells has been named in a civil complaint filed by the SEC. In connection with that lawsuit, Wells consented to the entry of an order enjoining him from violating SEC statutes and rules, and barring him from serving as an officer and director of any public company.

UCI uncovered the fraud and brought it to the attention of the SEC and the United States Attorneys Office. During the resulting investigations, UCI cooperated extensively, and it voluntarily provided all requested materials to federal investigators. United States Attorney Wilkins expressed his appreciation to UCI officials for their assistance.

The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Dean A. Eichelberger of the Columbia office handled the case.