Former Huntington Hospital Executive Sentenced to Three Years in Prison in Kickback Scheme that Cost Hospital Nearly $5 Million

LOS ANGELES—The former director of construction for Huntington Memorial Hospital in Pasadena was sentenced this morning to three years in federal prison and ordered to pay $4.8 million in restitution for orchestrating a kickback scheme in which companies were paid for work that was never done at the Pasadena hospital.

David Hamedany, 55, of Glendale, was sentenced by United States District Judge Percy Anderson. Hamedany pleaded guilty in May 2011 to two counts of mail fraud.

At this morning’s sentencing hearing, Judge Anderson said Hamedany was an immigrant who realized the American Dream, but had “lost his moral compass” and became motivated by greed.

Hamedany served as the director of construction for Huntington Memorial Hospital during the years from 2006 through 2010. Beginning in 2008, Hamedany orchestrated a billing and kickback scheme that resulted in the hospital paying more than $3 million to companies that performed no work at all for the hospital. The companies funneled 90 percent of the fees paid by the hospital to entities controlled by Hamedany. During the same time period, Hamedany entered into inflated contracts with entities that were performing services for the hospital, but agreed to inflate the price and pay the excess money in kickbacks to entities controlled by Hamedany. In total, the scheme, resulted in losses to the hospital of approximately $4.8 million.

In connection with this case, Hamedany has transferred ownership of his personal residence to Huntington Hospital to partially satisfy the restitution ordered today by Judge Anderson. Hamedany also has agreed to relinquish claims to vehicles and approximately $500,000 seized last year from a bank account last year.

The case against Hamedany was investigated by the Federal Bureau of Investigation.

CONTACT:
Assistant United States Attorney Angela J. Davis
Major Frauds Section
(213) 894-3456