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UnitedHealth appeared to take its investigation seriously. After The Wall Street Journal wrote last year about backdating at UnitedHealth, the UnitedHealth board hired McLucas, who ran internal probes at Enron and WorldCom.
The half-year investigation found 29 stock-option grants over the past 12 years that likely were backdated, including 1 million options to McGuire and 500,000 options to Hemsley.
UnitedHealth announced a $1.6 billion restatement, McGuire's departure and the promotion to CEO of 54-year-old Hemsley, former chief financial officer at Arthur Andersen. The board also formed a special litigation committee of two former Minnesota Supreme Court justices to review the firm's lawsuits and internal probe.
But shareholder and defense attorneys still fault UnitedHealth's investigation.
"Who was responsible for allowing the backdating to happen?" says attorney Karl Cambronne, who is suing UnitedHealth executives. "Was the board complicit in allowing management to reap extraordinary gains?"
Cambronne says the review went lightly on Hemsley. It said Hemsley played "a more limited role" in the option granting.
"Hemsley was the second-largest recipient of backdated options, and the penalty he suffers is a promotion to CEO," Cambronne says.
The fraud was and is to some extent deeply inbeded at UHC. I was a senior I/T consultant for UHC since it was only a 300 million dolar company. I watched it grow and saw many shady things happen, even to the almost killer purchse of Travlers junk businesses. I knew people who were allowed to pad their monthly expenses that brought them no tax income over 100k. Their were shall we say gifts from companys such as unisys, IBM, HP to certain persons for all the Hardware and support contracts . So let's hope this guy which I think he will can control the padding. Mcguire was nothing but a high paid no knowledge CEO and the board knew what they were doing with the backdating, a certain person they don't name much went from UHC to Carlson Companys with a large backdated payout and skipped most of the repay because it was a severance package another small hidden loop hole.
That is the rarified air of Corporate boards. Need to look at all corps. happens everywhere. Look at all the CEO's that run a business down and get mutlimillion dollar severance packages. It is and has been and old boys club and they take care of their own.
Sounds like CYOA.
UHC is being sued by the State of California for $10 billion dollars in performance penalties after the Pacificare merger! UHC admits themselves they screwed it up! This company is becoming like a zombie bank and should be broken up!!!
UHC's Golden Rule subsidiary tries to convince women to get "fixed" to drive down their costs!!
Kids should have gone dressed as Stephen Hemsley this past Halloween! Is he related to Leona Hemsley???
"Look at all the CEO's that run a business down and get mutlimillion dollar severance packages. It is and has been and old boys club and they take care of their own" The name "John Corzine" comes to mind - yet your messiah was RIGHT THERE cheering him on! Tell me more about how I should hate the Koch brothers...
We wouldn't want a poor company like UnitedHealth to get fleeced. Because that would keep THEM from fleecing OTHERS.
There is more than one reason to put a top white collar crime fighter on your payroll.
"The name "John Corzine" comes to mind - yet your messiah was RIGHT THERE cheering him on! Tell me more about how I should hate the Koch brothers..." I, for one, am sickened by Corzine's actions as CEO of a Wall Street bank. Don't hate...reform the system which allows the 1% to do this stuff while the 99% of us get stiffed. The 1% have and always will use labels to divide the 99%. That is how they succeed in stiffing us and enriching their pocketbooks.
The basic problem with corporate America is that they are running corporations as financial transction houses. the "focus", for example health care in this case, provides markets and focus of the financial staff to work in. they understand the attendant legal issues with temporarily owning medical supplies and future commitments for drugs and supplies ... and the physical issues of storage and processing - should it come to that. that expertise is turned into profit centers by NOT delivering health care - but by profiting on the resale/lending of the materials and services that such an organization might legally obtain. buy 12 million units of flu vaccine at a discount for a potential 7 million customers - then resell the unused vaccine to others later at a light mark up and for a slight profit on margin. Imagine that occuring on drugs, supplies, services (data storage, equipment, real estate, etc. ... ) and you get some sense of what and how corporations are really run.
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