A PYMNTS Company

Former MFA director pleads guilty to receiving kickbacks for steering contracts

 |  March 14, 2012

John D. Henderson, the former director of corporate maintenance and renovations at Medical Facilities of America Inc., has pleaded guilty to accepting kickbacks and evading taxes from 1998 to 2006. Medical Facilities of America is a healthcare and nursing home company operating in North Carolina and Virginia.

In one conspiracy, Henderson arranged to steer contracts for repair and maintenance to Donald R. Holland and Larry R. Sumpter, in exchange for payments totalling more than $250,000. Henderson created fictitious high competing bids and directed his subordinates to solicit quotes only from Hardy Plumbing & Heating Corp, the company formerly owned by Holland and Sumpter. Holland and Sumpter have pleaded guilty for their roles in the conspiracy on October 18, 2011, and were fined and sentenced to two years of probation.

In a second conspiracy, Henderson steered contracts to Edward T. Fodrey, Gary L. Johns, and others, for which he received over $400,000. Fodrey pleaded guilty on April 4, 2011 and was sentenced to serve 37 months in prison and a $326,799 fine. Johns pleaded guilty on December 12, 2011. He was sentenced to three years of probation and a $169,341 fine.

Full content: DOJ Press Release