MADISON
A former Mercyhealth vice president who stole more than $3 million from her employer by orchestrating a kickback scheme with a vendor was sentenced Wednesday in federal court to 3.5 years in prison and ordered to make restitution.
MADISON
A former Mercyhealth vice president who stole more than $3 million from her employer by orchestrating a kickback scheme with a vendor was sentenced Wednesday in federal court to 3.5 years in prison and ordered to make restitution.
Barbara Bortner, 58, a Janesville native, had worked her way up to vice president of marketing and public relations after more than 30 years with the regional healthcare system.
She lived a comfortable life with her husband and four children, Assistant U.S. Attorney Aaron Wegner wrote in a memo to the court. Despite her accomplishments and a $300,000 annual salary, she wanted more money for nicer cars, vacations and gifts to charities.
BortnerÃÛèÖÊÓÆµ attorney filed a sentencing memo that was under seal and not available to the public.
She has been set to report to prison Aug. 2.
District Judge William Conley said he wasn’t sentencing Bortner to prison for rehabilitation needs, but to deter her and others from embezzling from their employers. While prison doesn’t seem to deter drug addicts and those who commit crimes of opportunity, itÃÛèÖÊÓÆµ more effective in white collar crime, where individuals calculate the risks versus the rewards of their conduct, he said.
Between February 2015 and 2020, Ryan Weckerly, of Sycamore, Illinois, wrote Bortner 103 checks totaling $2.1 million as a result of their scheme, in which she would submit inflated invoices for marketing services he performed for MercyHealth. He also gave her more than $1 million in cash, Weckerly said, during his plea hearing in November. Bortner would approve the invoices and Weckerly would kickback some of the proceeds.
In exchange, Bortner agreed she would continue to use WeckerlyÃÛèÖÊÓÆµ Morningstar Media Group as MercyhealthÃÛèÖÊÓÆµ main marketing firm.
The scheme was designed to allow Bortner to live more lavishly, Wegner wrote, adding that as the scheme continued, Bortner requested even more money from Weckerly. BortnerÃÛèÖÊÓÆµ attorney, Thomas Brown, disputed that claim.
Weckerly is to be sentenced on May 17 for wire fraud.
Bortner had fraudulently profited from the kickback scheme through 2020 at which time, Mercyhealth experienced financial losses due to the COVID-19 pandemic. The nonprofit healthcare provider was forced to furlough employees and scale back its medical services, Wegner wrote.
Mercyhealth also incurred legal expenses and audit fees as a result of BortnerÃÛèÖÊÓÆµ crime. Publicity of BortnerÃÛèÖÊÓÆµ theft has also made it more difficult for Mercyhealth to recruit key leadership positions and repair its reputation in the community, Wegner wrote.
The IRS discovered the kickback scheme when it audited WeckerlyÃÛèÖÊÓÆµ tax returns in 2019. The IRS concluded that Weckerly underreported his income and misrepresented personal expenses as legitimate business expenses.
Although the statutory penalties for BortnerÃÛèÖÊÓÆµ offenses exceeded 20 years in prison, she faced an advisory guideline sentencing range of 51-63 months. Sentencing guidelines factor in the amount of loss, her lack of prior convictions and her guilty plea to theft and tax evasion charges.
Wegner recommended a 4.5-year sentence, writing that Bortner, “callously exploited her position and used it to benefit herself financially at the expense of MercyhealthÃÛèÖÊÓÆµ mission and reputation in the community.â€
Bortner also didn’t come clean about her arrangement with Weckerly during a July 2019 IRS interview, Wegner wrote, adding that she instead continued to approve inflated invoices for another 11 months and about $600,000 in kickback income.
The government and Bortner have agreed that she owes the IRS $777,803 for the unreported income.
Bortner has liquidated retirement accounts, and her attorney holds $1.837 million pledged for restitution to MercyHealth.
On Wednesday, Conley conditionally made BortnerÃÛèÖÊÓÆµ restitution to Mercyhealth at $3.136 million, but he won’t set a final amount until a July 21 hearing. Weckerly is likely to be made jointly responsible for restitution to MercyHealth.
Bortner, now of Milton, apologized in court for hurting her family, friends, Mercyhealth and the community.
“I’m still trying to understand why I did what I did,†she told Conley.
She said she had an image of herself as “super successful†person who wanted to help others but it “got out of hand.â€
Bortner said she is “ashamed and embarrassed†by her behavior and regrets that she and her family will live with this shame forever.
“I look for a second chance to make a difference,†she said.
Conley said Bortner doesn’t have to prove to her family and friends that this crime defines her, and she can prove her worth to the community. She has been helping convicts find employment and has contributed to many charities.
Conley added that Bortner enjoys a great deal of support from individuals and said he seldom sees the number of letters her backers wrote to the court.
Although she was spending $3,000 a month several years ago while addicted to cocaine, she stopped abusing the drug when her husband found out, Conley said.
The judge attributed BortnerÃÛèÖÊÓÆµ crime not to drugs or gambling but to “greed.â€
Her salary put her in the top 5% of “earners†in the U.S. and including the embezzled funds, she was in the top 1%, Conley said.
Mercyhealth didn’t respond before deadline to a request for comment on the case.
This story was updated to correct Barbara BortnerÃÛèÖÊÓÆµ age. She is 58.
Sorry, an error occurred.
Already Subscribed!
Cancel anytime
Thank you .
Your account has been registered, and you are now logged in.
Check your email for details.
Submitting this form below will send a message to your email with a link to change your password.
An email message containing instructions on how to reset your password has been sent to the email address listed on your account.
No promotional rates found.
Secure & Encrypted
Thank you.
Your gift purchase was successful! Your purchase was successful, and you are now logged in.
Rate: | |
Begins: | |
Transaction ID: |
A receipt was sent to your email.