A federal jury has convicted two former leaders of Medical Manager Health Systems, a physician software vendor that now is part of Sage Healthcare in Tampa, of fraud.
John Kang, former president of Medical Manager; and John Sessions, former vice president and COO, were convicted of conspiracy to commit mail, wire and securities fraud. They were charged with and found guilty of participating in a conspiracy to fraudulently inflate reported earnings by more than $16.8 million between 1997 and 2003, according to the U.S. Department of Justice. Kang and Sessions face maximum sentences of five years in prison and a fine of $250,000, or twice the amount of the related gain or loss resulting from the conduct.
Six other Medical Manager executives previously pled guilty for their roles in the conspiracy. Michael Singer, former CEO of Medical Manager, in January entered into a "deferred prosecution arrangement" and agreed to forfeit $2.5 million. Under such an arrangement, a defendant that meets certain conditions for a specified period of time will have the charges dismissed.
Two other executives, former controller Charles Hutchinson and former associate general counsel Franklyn Krieger, are awaiting trial this year. For more information, click here.
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