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POLL: Columbia/HCA whistleblowers stunned Rick Scott is atop Florida governor polls

Florida gubernatorial candidate Rick Scott said people started suggesting he run for governor after hearing him speak out about how the federal government needed to stay out of health care.

Provided by Rick Scott for Governor

Florida gubernatorial candidate Rick Scott said people started suggesting he run for governor after hearing him speak out about how the federal government needed to stay out of health care.

“He was a fairly hands-on CEO,” said John Schilling, a former reimbursement supervisor in the Fort Myers division office. “He should have known being CEO of a multibillion-dollar company. He should have known what is on his balance sheet.”

“You’re over-lawyering this,” Nashville attorney Jerre Frazier recalled Scott telling him. “He’s an optimistic kind of guy. He doesn’t like bad news.”

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A whistleblower in the Columbia/HCA fraud case said Rick Scott should have known of billing practices at his hospitals that cheated the federal government out of millions of dollars.

“He was a fairly hands-on CEO,” said John Schilling, a former reimbursement supervisor in the Fort Myers division office. “He should have known being CEO of a multibillion-dollar company. He should have known what is on his balance sheet.”

A Nashville attorney brought in for his auditing acumen remembers talking to Scott about significant compliance problems.

“You’re over-lawyering this,” Jerre Frazier recalled Scott telling him. “He’s an optimistic kind of guy. He doesn’t like bad news.”

These former corporate insiders are bewildered by Scott’s candidacy for Florida governor, let alone his dramatic rise in the polls.

Voters are seemingly discounting Scott’s forced resignation in 1997 shortly after the FBI began widespread raids of Columbia/HCA offices. Ultimately, the largest for-profit hospital chain in the United States paid a record $1.7 billion in criminal and civil fines for Medicare fraud.

In television ads and on the campaign trail, Scott has repeatedly said he takes responsibility for what happened at the company and says he learned from it.

“Initially when I first saw he was running, I didn’t give him much chance,” said Schilling, 48, who has lived in Naples since 2001. “You can buy your way into the candidacy.”

Schilling didn’t know Scott also lives in Naples until he began research for his 2006 book, Undercover, detailing his life as an FBI informant in the case. The two have never run into each other in Naples.

“He’s putting on what people want to hear,” Schilling said of Scott’s candidacy. “People are always frustrated at inefficiency of government.”

Schilling was hired at the company’s Southwest Florida division offices in 1993 as a reimbursement manager. Six months into the job, he sensed something was wrong. A Medicare auditor had made an error that resulted in a $3 million gain at Fawcett Memorial Hospital in Port Charlotte.

District executives conspired to keep the mistake under wraps and keep the ill-gotten gain. He soon found other record irregularities going back at least 10 years.

“I exposed a double set of books,” he said, adding that one set was inflated cost reports for the federal government and the second was for internal purposes.

“The second was stamped confidential and don’t show to Medicare auditors,” Schilling said. “We estimated alone in 10 years over a billion in overpayments to the chain.”

“I exposed a double set of books,” Schilling said, adding that one set was inflated cost reports for the federal government and the second was for internal purposes. “The second was stamped confidential and don’t show to Medicare auditors. We estimated alone in 10 years over a billion in overpayments to the chain.”

In time, Schilling joined forces with James Alderson, an accountant at a Montana hospital, in a whistleblower case against Columbia/HCA.

Scott’s way of doing business was to have his chief executive officers at regional offices play hardball with acquisitions of other hospitals, doctors’ practices and bottom-line profits.

“If you didn’t cut the mustard, you were let go, if you didn’t meet budget goals,” Schilling said. “That is the way Rick Scott ran the company. He gave goals on notecards. He created a culture that the individual pushed the limit. Bonuses were 50 percent or more of a salary.”

* * * * *

Frazier, the Nashville attorney brought in to troubleshoot compliance issues, recalls Scott as always polite and personable.

“He was not a tyrant,” said Frazier, who now lives in Houston. “He stood in line in the cafeteria.”

The same day he was ousted as CEO, Scott didn’t flee the corporate premises _ instead he shook hands with employees.

“There were three buildings and he went around and expressed his appreciation to people,” he said.

Scott’s downfall nonetheless was the corporate culture he created that went bad, Frazier said, explaining that hospital managers and division chiefs were relentless in meeting Scott’s mission of creating a unified health-care and hospital company.

“I did not see Rick Scott act in bad faith but what I did see is the corporate culture he presided over. I did not see Rick Scott to be inclined to do anything criminal,” he said.

Home of Rick Scott, Naples, Wednesday, June 16, 2010. Photo by Tristan Spinski

Photo by TRISTAN SPINSKI

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Home of Rick Scott, Naples, Wednesday, June 16, 2010. Photo by Tristan Spinski

“I did not see Rick Scott act in bad faith but what I did see is the corporate culture he presided over. I did not see Rick Scott to be inclined to do anything criminal,” Frazier said.

Still, Frazier isn’t certain how aware Scott was of the consequences of the corporate culture he created.

“I’m not sure he understood how much his lieutenants twisted arms,” he said. “People did not report bad news to him.”

Television campaign commercials in Florida, aired by supporters of opponent

Bill McCollum, may be truthful that impoverished seniors and uninsured pregnant women who were unable to pay were turned away at Columbia/HCA hospitals. But he doesn’t believe that would have happened if Scott were on the scene.

“I don’t think Rick Scott would have left someone outside, I don’t think he would have left someone to die,” Frazier said. “That is not the right thing to do and I do think he would have said it was not the right thing.”

Still, bottom-line driven hospital managers with sights sets on their bonuses were more than likely to find ways to exclude services to the poor and uninsured.

“Turn people away? It may have been a little more extreme at HCA,” he said.

Schilling, the Southwest Florida whistleblower, said he’s certain those kinds of things happened at Columbia/HCA and other hospitals.

“What I did hear sometimes in the trenches, some cost-cutting measures did have impacts on the quality and nurses were stretched thin. Patient satisfaction (surveys) showed high results. Who is compiling those surveys and how valid are those? Was there an independent source?”

For certain, when the federal investigation went into overdrive, a mountain of lawyers was retained, Frazier said.

“Three law firms were hired, each undermining each other. There was sort of mass confusion,” he said. “The lawyers did have control over who had access to Rick Scott.”

“CEOs blanket themselves with attorneys,” Schilling said. “They dodge the bullet of not being questioned. He never gave any information or assisted in the investigation.”

Although Scott has stated that he takes responsibility, Schilling doesn’t think that should satisfy voters.

“I give him credit for taking responsibility for those things but again, he stated he wasn’t aware of the fraud,” Schilling said. “I find it somewhat ironic, here you have someone running a multibillion-dollar company and he is not aware of what is going on and yet he wants to be governor. Is he going to not be aware of what is going on in state government? I just wouldn’t trust him.

“It must be an ego thing,” he added, about his theory of why Scott is running for governor. “He must need the ego of being in charge. I don’t know. It’s not for the money so it’s got to be for the ego.”

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? Click here for a Q&A with the Daily News and Rick Scott

_ Connect with reporter Liz Freeman at www.naplesnews.com/staff/liz_freeman

? 2010 Naples Daily News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

POLL: Columbia/HCA whistleblowers stunned Rick Scott is atop Florida governor polls

Lee man alleges voodoo, fights to get motel back from Santeria spiritual adviser

In October 2007, Enzo Vincenzi, 43, now of Estero, paid Miriam Pacheco $50 and the “Santeria Africana” spiritual adviser and healer warned he was in grave danger. Pacheco, who calls herself Madrina Miriam (godmother Miriam), warned only she could help. In the end, Pacheco took Vincenzi to a Fort Myers lawyer, and Vincenzi signed documents that Pacheco prepared, signing away his motel.

“During the course of the ceremony, Pacheco killed a bird and passed it over Vincenzi’s stomach while praying and chanting, which she claimed would heal his stomach ailments,” the lawsuit says. “Pacheco also covered Vincenzi’s eyes, made him drink an unidentified liquid and laid her hands on him — all of which she claimed would help heal him.”

Attorney Joseph Hoffman, who represented Pacheco, just considers it a case involving a language barrier: Vincenzi speaks English, while Pacheco only speaks Spanish. “I’ve had weirder cases,” Hoffman said. “I’m not saying this was plain vanilla. But it’s a property dispute. That’s all it was.”


It sounds like a bad TV movie.

A sick Lee County hotelier worried about his finances and stomach problems looked in the Yellow Pages under herbs, found the Botanica 7 Potensias Africanas shop in Fort Myers, then sought treatment and help.

On that day in October 2007, Enzo Vincenzi, 43, now of Estero, paid the owner, Miriam Pacheco, $50 and the “Santeria Africana” spiritual adviser and healer warned he was in grave danger. Pacheco, who calls herself Madrina Miriam (godmother Miriam), warned only she could help.

Over weeks and months, there were ritualistic ceremonies involving a dead bird, a sacrificed rooster, liquid potions, prayers and chants by Pacheco, her Santerian “god-daughter,” Maria Teresa Torres, and another god-daughter.

In the end, Pacheco took Vincenzi to a Fort Myers lawyer, and Vincenzi signed documents that Pacheco prepared, signing away his motel.

Those are the allegations in a lawsuit Vincenzi and Sabal Oasis Inn filed in Lee Circuit Court against Pacheco, 57, and Torres, 43.

“It was a very bizarre case,” Naples attorney Michael D. Randolph, who filed a related lawsuit against Pacheco and Torres, said of Vincenzi’s allegations.

But attorney Joseph Hoffman, who represented Pacheco and Torres, just considers it a case involving a language barrier: Vincenzi speaks English, while Pacheco and Torres only speak Spanish.

“I’ve had weirder cases,” Hoffman said. “I’m not saying this was plain vanilla. But it’s a property dispute. That’s all it was.”

His clients have denied allegations of ritualistic ceremonies, fraud or coercing Vincenzi into turning over his motel.

On Thursday, Lee Circuit Judge Sherra Winesett signed an order for partial summary judgment, for $37,000 that a Lee circuit jury awarded Vincenzi in April for intentional infliction of emotional stress.

Vincenzi, who ended up marrying Torres’ daughter, was involuntarily committed to a psychiatric hospital under the state’s Baker Act months after the rituals, due to the loss of his motel and fears that Pacheco’s predictions of doom, his poisoning and death would come true.

His wife, Cynthia, testified against her mother and Pacheco, as did others who said Pacheco scammed them.

The jury also awarded Vincenzi $99,500 for the loss of his 13-room motel and attached home, finding fraudulent misrepresentation by Pacheco and Torres.

But Pacheco doesn’t have $99,000 and Vincenzi’s attorney, Bradley Lang of Naples, is working on a rescission of deed so Vincenzi can get his motel back.

“Returning the motel is ‘equitable relief’ and only the judge can do that,” Lang said after the brief hearing. “The jury can only award monetary damages.”

A rescission of deed is designed to make everyone involved whole, a domino effect that returns all parties back to the way each started.

In the other case, attorney Randolph has $250,000 that Pacheco obtained through a loan to pay his client, Leone Mason Contracting Inc., which is owned by Vincenzi’s father. He’d had the motel’s original mortgage, sued Pacheco and Torres for payment after the transfer, and they defaulted.

“If you have a car that you bought, you give it back to the dealer and the dealer gives it back to the manufacturer and the manufacturer gives it back to the smelter,” Randolph said, explaining a rescission. “You either choose damages or you choose rescission.”

Randolph would return the $250,000 to Pacheco, who would give it to her lender. Pacheco and Torres and their families would vacate the motel, then Vincenzi would get it back.

A hearing on the deed rescission hasn’t yet been scheduled.

“We’re waiting to see if my client can come up with the money,” Hoffman said. “Money is tight now.”

Vincenzi is hopeful.

“They made me homeless,” Vincenzi said after the hearing, adding that he’s unemployed and faces nearly $20,000 in medical bills. “They traumatized me, I ended up in the hospital, I’m drowning in debt — and they’re still in my house.”

Depositions show Pacheco, of Cuba, and Torres, who is from Honduras, have elementary school educations. They work at the motel and Pacheco’s store, which sells saint statues, candles, herbs for spiritual baths, and other items for spiritual ceremonies, voodoo and Palo, an Afro-Cuban religion also known as Reglas de Congo.

Pacheco denied doing voodoo or Palo, saying her son wrote that when he set up her website: http://botanica7potencias.com/

After the lawsuits were filed, there were allegations back and forth and restraining orders.

“They made up an incident report and three weeks later, when I was in court, they have me arrested and claim I assaulted them,” Vincenzi said. “The day we were supposed to go to trial on this, they dropped it. The judge warned them. He saw right through the whole thing.”

Torres, however, was convicted of battery on Vincenzi and resisting arrest after a Lee County deputy saw Torres hit Vincenzi.

Vincenzi also filed complaints to alert state and federal agencies about the real estate fraud. He’s reported the Fort Myers attorney who handled the deed transfer to The Florida Bar, two real estate brokers and an accountant to the Division of Business and Professional Regulation, and mailed letters to the state Attorney General, the U.S. Attorney, the FBI and others.

The original lawsuit filed by Vincenzi’s prior attorney, Andrew Epstein of Fort Myers, details the unusual case:

Pacheco cautioned Vincenzi he was in danger of demonic spirits, the devil, and said the hotel’s prior owners had buried the devil. He was in grave danger, faced IRS problems and she claimed prostitutes worked at his motel.

She said she could help by becoming his Santeria Africana godmother. At a card reading and St. Lazarus ritualistic ceremony, she warned he was a “walking dead man” and his housekeeper was poisoning his food.

“During the course of the ceremony, Pacheco killed a bird and passed it over Vincenzi’s stomach while praying and chanting, which she claimed would heal his stomach ailments,” the lawsuit says. “Pacheco also covered Vincenzi’s eyes, made him drink an unidentified liquid and laid her hands on him — all of which she claimed would help heal him.”

A week later, she sacrificed a rooster, saying it would protect him from the motel’s former owners, who were trying to kill him. She told him to pay her $500 so he could move into the home she shared with Torres. He remained there, confined to a bed, for about two months as she and Torres served as spiritual advisers.

She took him to a beach and performed a “Queen of the Seas” ceremony, chanting and praying over him as he lay in the sand. She urged him to see her attorney, who could help with legal problems she predicted.

She coerced him into transferring the property, promising to save him from demonic spirits and attempts on his life.

She took him to her attorney and Vincenzi signed deeds Pacheco prepared, transferring the motel to her and Torres without cost. He lost his Jaguar, pickup truck, motorboat and possessions after she evicted him; they deny taking his vehicles.

A former client used to picket Pacheco’s store, claiming she was defrauded, and evidence Lang obtained shows this wasn’t the only time Pacheco was accused of fraud.

An attorney for Devoe Pontiac in Bonita Springs successfully fought a worker’s compensation claim she’d filed under her married name, Miriam Engstrom. An insurance database turned up many fraudulent slip and falls, injuries, a stroke and accidents she’d filed claims for against four employers from 2001 to April 2003; insurers denied them.

Documents show she settled a slip-and-fall hernia case against Walmart for about $56,000 and got $8,000 for a 2001 motor vehicle claim. That insurer later found she’d had two other auto claims in 1998 and 1999, and had sought benefits for an alleged 1995 industrial accident — although she claimed to have only worked as a housekeeper and had no prior auto claims.

? 2010 Naples Daily News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Lee man alleges voodoo, fights to get motel back from Santeria spiritual adviser