Albuquerque Journal, N.M., Karen Peterson column [Albuquerque Journal, N.M.]

Dec. 28--SANTA FE -- A former executive at what is now Christus St. Vincent Regional Medical Center allegedly bilked the hospital out of more than $3 million by funneling the money through corporations he owned and which were controlled by a woman with whom he had a personal relationship.

Richard Crabtree was hired by St. Vincent in 2002 and promoted to senior vice president and chief operating officer in 2006.

"Within months of his initial hiring by St. Vincent Hospital until his termination for cause on March 13, 2008, defendant Crabtree and the other defendants engaged in a pervasive scheme" to misappropriate money, according to a lawsuit filed in federal court by the medical center's insurance company.

"Through this scheme, the defendants billed and collected a total of at least $3,238,523.06 from St. Vincent Hospital for sham transactions consisting of payment for claimed services that were either never provided or were billed in amounts grossly in excess of their limited value," the lawsuit states.

According to the suit, Crabtree had "the authority to approve all expenditures related to information system hardware or software."

Great American Insurance Co. paid a claim filed by the hospital and now is trying to recov- er the money from Crabtree and other defendants.

Crabtree, who now lives in Castle Rock, Colo., didn't return phone messages left at his home.

Christus St. Vincent CEO Alex Valdez said Saturday that information about the scheme came to light through an anonymous "packet" he received in late January 2008.

" I don't know if one person or several persons put together this file," he said. "But I would like to thank them for having done the right thing."

In 2008, St. Vincent officials wouldn't comment on Crabtree's departure when he left the hospital. His departure coincided with the merger of St. Vincent and the Christus health care group, a Catholic nonprofit that operates numerous hospitals in several states.

Valdez said Saturday that hospital officials, including its board of directors, moved quickly to investigate the fraud allegations once they learned of them early in 2008.

Valdez said he learned about possible misconduct by Crabtree in January of that year and alerted board members. An investigation followed, and Crabtree was fired "with cause" in March, Valdez said Saturday.

The hospital's board also alerted law enforcement authorities about the possible fraud. Valdez would not say Saturday which agencies had been notified of Crabtree's alleged wrongdoing.

"It was requested that we keep that confidential," he said. "I don't want to do anything to jeopardize ongoing investigations."

Valdez said the hospital is "still waiting" for authorities to take action against Crabtree for possible criminal acts.

On Tuesday, a spokeswoman for the New Mexico Attorney General's Office confirmed that the case was referred to the AG's Investigations Division.

"As is the case with any referral, the matter was assigned for further review and inquiry," spokeswoman Lynn Southard said via email. "Per our media policy, we cannot comment on the status of that inquiry at this time."

Valdez stressed that despite the magnitude of fraudulent billings, the hospital was able to recoup the money through its insurance carrier and as a result didn't suffer financially. "From the hospital perspective, we have been made whole," he said.

The woman that the lawsuit says Crabtree had a relationship with and her two brothers allegedly billed the hospital for $3.2 million through a number of companies in New Mexico, Arizona and Texas that they controlled.

The companies involved sometimes shared a single bank account. In addition, Crabtree and the others set up a meeting in an effort to convince St. Vincent officials that the companies were legitimate.

"As part of this meeting, a part-time student was flown in from San Antonio (Texas) to pose, falsely, as an engineer employed by" one of the companies, the suit reads.

Crabtree also tried to prevent "knowledgeable St. Vincent Hospital personnel" from interacting with the others involved "in order to minimize the risk of discovery," the suit states.

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