The United States Attorney’s Office for the Middle District of Pennsylvania has charged Paul D. Polen, a 71-year-old resident of Lock Haven, Pennsylvania, with conspiracy related to theft or bribery concerning programs receiving federal funds. The charge stems from alleged activities at a nursing home in Lock Haven between 2002 and 2022.
According to United States Attorney Gerard M. Karam, it is alleged that Polen conspired with an unnamed physician to receive kickback payments. The nursing home involved was a recipient of Medicare benefits exceeding $10,000 annually. Federal law prohibits embezzling or misapplying property worth at least $5,000 from organizations receiving such federal funds.
Polen allegedly hired the physician to run the workers’ compensation program at the nursing home on the condition that half of the physician’s salary would be paid back to Polen each month through a company called Paul D. Polen, Inc., which he established and named his wife as president in name only.
The physician reportedly agreed to this arrangement, which required minimal work hours per month and included evaluating Polen’s own workers’ compensation claims. This arrangement allowed Polen to maintain a reduced work schedule while still receiving full compensation from the nursing home.
Payments ranging from approximately $1,700 to $2,500 were allegedly made monthly over about twenty years. To conceal these transactions, payments were exchanged at the physician’s home rather than at their workplace. It is claimed that approximately $528,450 was embezzled through this scheme.
The Federal Bureau of Investigation conducted an investigation into these allegations. Assistant U.S. Attorney Ravi Romel Sharma is handling the prosecution.
If convicted of conspiracy under federal law, Polen faces up to five years in prison, supervised release after imprisonment, and fines. Sentencing will be determined by a judge based on federal statutes and guidelines.
It is important to note that indictments and criminal informations are merely allegations; all individuals charged are presumed innocent until proven guilty in court.
