A former IT manager for America's Health Insurance Plans has pled guilty to defrauding the not-for-profit industry organization of nearly $1 million.
Dribjot S. Dua entered a guilty plea to mail fraud in U.S. District Court here on Friday. Jeffrey A. Taylor, U.S. attorney for the District of Columbia, announced the outcome of the case, which had been investigated by the Metropolitan Police Department and the Secret Service.
After taking into account insurance recovery and restitution, auditors declared the net financial impact on AHIP's bottom line "immaterial," said Mohit Ghose, AHIP's vice president of public affairs. Ghose said AHIP worked diligently with law enforcement to resolve the case. He declined to comment on whether AHIP had changed hiring or other procedures.
AHIP bills itself as "the voice of America's health insurers." It represents nearly 1,300 member companies, such as Unum, Cigna, Aetna and UnitedHealth Group.
Dua diverted $947,000 from AHIP from May 2004 to January 2007, while he was employed as the information technology manager with the association, according to court papers. As IT manager, Dua was authorized to order computer hardware, software and software licenses.
Dua ordered $939,778 worth of computer products for AHIP from a Maryland company known as Network Circle. AHIP paid for the products.
Unbeknownst to AHIP, Taylor said, Dua was the sole director, employee and shareholder of Network Circle. None of the products AHIP paid Network Circle for was ever received by AHIP.
"In addition, during the same period, Dua ordered about $7,500 worth of computer products from other, legitimate companies, paid for by AHIP and ostensibly for AHIP's use, but secured by Dua for his own personal use," Taylor said. Dua directed the companies to ship some of these items directly to his residence. Some of the products, including a $6,500 Hewlett-Packard computer server, were seized during execution of a search warrant at Dua's home.
Under the terms of his plea agreement with the government, Dua must forfeit more than $9,200 in funds remaining from a bank account in the name of Network Circle, $42,000 in currency and traveler's checks seized during the search of his residence, the balance of his AHIP 401(k) plan, as well as other assets.
Sentencing is set for Jan. 28. Dua faces an advisory sentencing guideline range of 27 to 33 months in prison. He is also subject to deportation.