Former NY Healthcare Executive Sentenced for Mail Fraud

Oneonta, N.Y. (AP) — Kevin Harrington, 50, a former healthcare executive, was sentenced Monday to three years of probation for defrauding his employer of over $150,000. Harrington, the former executive director of First Community Care of Bassett, LLC, pleaded guilty earlier this year to two counts of mail fraud.

According to federal prosecutors, Harrington submitted false expense reports to his employer, an affiliate of the Bassett Healthcare Network, claiming reimbursements for equipment that was never purchased. Specifically, Harrington created fake invoices for continuous positive airway pressure (CPAP) machines, which were purportedly intended for patients.

Between December 2015 and May 2020, Harrington systematically falsified documentation to support his fraudulent claims, pocketing the money intended for legitimate business purposes. The scheme unraveled during an internal audit, prompting an investigation by the Federal Bureau of Investigation (FBI).

Court documents revealed that Harrington's actions were motivated by financial struggles, though prosecutors emphasized that his position of trust as a senior executive amplified the gravity of his misconduct.

During the sentencing hearing in U.S. District Court for the Northern District of New York, Judge Brenda K. Sannes ordered Harrington to pay $150,134.79 in restitution to Bassett Healthcare Network, in addition to serving his probation.

Harrington expressed remorse in court, stating, “I deeply regret my actions and the harm they caused to my colleagues and the organization I served.”

Judge Sannes acknowledged his apology but underscored the importance of deterring similar crimes, particularly within industries like healthcare, where trust is paramount.

The case highlights the vulnerabilities organizations face from internal fraud, particularly in sectors like healthcare, where resources are often stretched thin. Federal authorities praised Bassett Healthcare for its diligence in uncovering the fraud and cooperating with investigators.

“This sentencing demonstrates that no one is above the law,” said U.S. Attorney Carla Freedman in a statement. “We will hold accountable those who exploit positions of trust for personal gain.”

The case was prosecuted by Assistant U.S. Attorney Michael F. Perry, with investigative support from the FBI's Albany Field Office.

Harrington, who has no prior criminal record, will avoid prison time, but his probation includes strict financial monitoring and restrictions on future employment in fiduciary roles.