Former Haven Healthcare Director Pleads Guilty to Federal Fraud Charge

Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that FREDERICK J. DALICANDRO, JR., 45, of Bidwell Street, Glastonbury, waived his right to indictment and pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of wire fraud.

According to court documents and statements made in court, DALICANDRO was formerly employed as director of cash management at Haven Healthcare. Beginning in August 2007, DALICANDRO and another member of Haven Healthcare’s senior management, identified in court as “Individual A,” engaged in a scheme to defraud Omega Healthcare Investors (“Omega”), a real estate investment firm located in Maryland. Omega owned nursing homes in Connecticut, Vermont, and New Hampshire, which Omega leased to Haven Healthcare, who operated and managed the homes.

In September 2007, Omega agreed to provide funding to Haven Healthcare for capital improvements to the fire sprinkler systems at two of its facilities, Haven Health Center of Jewett City and Haven Health Center Soundview in West Haven. Omega agreed to reimburse Haven Healthcare for “Actual Costs” of sprinkler improvements for the fire sprinkler systems at the Jewett City and Soundview facilities, up to an amount of $2 million.

In pleading guilty, DALICANDRO admitted that he and Individual A submitted invoices and checks to Omega in order to obtain the sprinkler funds, but did not intend to use the money for the sprinklers at the facilities. DALICANDRO further admitted that upon receiving the sprinkler funding, he and Individual A did not pay the vendors as they had told Omega they would, and did not spend the funds on the sprinklers.

Judge Underhill has scheduled sentencing for January 22, 2010, at which time DALICANDRO faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

This matter is being investigated by the federal Health Care Fraud Task Force, including agents from the Offices of the Inspectors General of the U.S. Department of Health and Human Services, the U.S. Department of Veterans Affairs, the U.S. Department of Labor, and the U.S. Department of Housing and Urban Development, along with agents from the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney David J. Sheldon and Auditor Susan Spiegel.

U.S. Attorney Dannehy encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 785-9270, or 1-800-HHS-TIPS.