Plea hearing scheduled in Tulare hospital corruption case. Could case come to an end?

According to court filings submitted on Wednesday, former Healthcare Conglomerate Associates' CEO Dr. Yorai “Benny” Benzeevi will enter a change to his 2021 not guilty plea in the largest and most costly public corruption trial in Tulare County history.

The change of plea hearing is scheduled for 1:30 p.m. Friday at the Tulare County Superior Court in Visalia. The filing didn't include how Benzeevi's plea would change.

Benzeevi is facing up to 40 years in prison for multiple criminal counts during his controversial administration of Tulare Regional Medical Center from 2013-2017. In addition, the Tulare County District Attorney's office has estimated that Benzeevi could be ordered to pay up to $20 million in restitution to the hospital district, if convicted.

Benzeevi was charged in December 2020 with grand theft, conspiracy, money laundering, and multiple counts of embezzlement by a public officer.

Dr. Yorai “Benny” Benzeevi was taken in chains at Los Angeles International Airport, where he had landed from a Manila, Philippines flight
Dr. Yorai “Benny” Benzeevi was taken in chains at Los Angeles International Airport, where he had landed from a Manila, Philippines flight

Four months after District Attorney Tim Ward indicted Benzeevi, the former CEO was arrested at Los Angeles International Airport after flying in from the Philippines. Benzeevi surrendered himself in Manila after his lawyers, prosecutors, and federal officials at the American Embassy in the Philippines agreed on his self-deportation back to the United States.

The fall from grace of the emergency room doctor to corporate CEO who once compared himself to Henry Ford was stark as he left the airport with his arms shackled to his waist while wearing a mask and face shield as protection from COVID-19.

Since his surrender in 2021, Benzeevi and a series of his lawyers have battled the DA's office over frozen bank accounts, conflicts of interest with Tulare County District Attorney, and defense attorney billing issues.

The hospital is now run by Adventist Health.

The case

Since 2020, Benzeevi, CFO Alan Germany, and attorney Bruce Greene have been in legal wranglings with the Tulare County District Attorney's Office on suspicion of embezzlement, conspiracy, money laundering, grand theft, and campaign finance violations when they ran the Tulare hospital.

Among the charges filed:

  • BenzeeviGrand theft, conspiracy, money laundering, and multiple counts of embezzlement by a public officer.

  • Germany: Conflict of interest, grand theft, and multiple counts of embezzlement by a public officer.

  • Greene: Conflict of interest, grand theft, conspiracy, money laundering, and multiple counts of embezzlement by a public officer.

Plea deals surrounding the hospital cases have helped prosecutors keep taxpayer dollars from being drained in lengthy and expensive trials.

Germany pleaded in December 2023 and was ordered to pay thousands back to the hospital.

Greene remains a lawyer, though the state has placed a consumer alert warning on his license.

"This attorney has been charged with a felony. The felony matter is pending in Tulare County Superior Court."

In January 2023, Greene's firm settled a civil case with the Tulare hospital district for $3 million. Greene is expected back in court in May for his criminal case.

How'd we get here?

In December 2013, Benzeevi created HCCA to bid on a lucrative contract running the troubled Tulare hospital. His brother and others were present during the board meeting to speak on behalf of Benzeevi, who ultimately won the contract on behalf of HCCA . HCCA's hiring created controversy, though. Concerned citizens questioned whether a newly formed company with no track record running a hospital could be effective. Critics also questioned the lucrative monthly fee — at about $225,000 a month —  HCCA was awarded to run the hospital.

Throughout 2014 and 2015, TRMC seemed to have turned a financial corner. Dr. Benzeevi earned praise from the elected TRMC board because monthly financial reports no longer showed red ink.

Court filings, though, allege HCCA was extending loans to cover up the hospital's losses, the DA's office said.

By mid-2016, though, cracks began to show in HCCA's management of the hospital. Community critics, led by Citizens for Hospital Accountability, questioned HCCA's rosy economic reports, conflicts with doctors broke out and complaints about the quality of care at the hospital mounted.

In August of 2016, Tulare voters dealt HCCA a major blow when they overwhelmingly rejected Measure I, which would have funded the completion of the hospital's empty tower.

Soon after the Measure I defeat, discord over HCCA's day-to-day operations began to surface. Fewer patients were going to the hospital and the number of surgeries and births dwindled.

In September 2016, employees and residents were informed by HCAA there was a severe cash shortage.

In November of 2016, the California Department of Public Health found after-hours staffing shortages at the hospital contributed to the death of two patients.

By mid-2017, the hospital and HCCA were in full crisis mode, fighting off constant criticism by Citizens for Hospital Accountability, financial woes that caused the hospital to miss payroll, and a recall campaign against then TRMC board member and HCCA supporter Dr. Parmod Kumar.

After a contentious recall campaign against Kumar was successful, the newly formed anti-HCCA TRMC board majority essentially fired HCCA in October 2017.

In 2017 and 2018, a series of warrants were served across the country in regard to TRMC's management by HCCA.

The searches netted FBI agents and investigators several computers, cell phones, electronic devices, information storage items, pricey designer handbags, and financial and bookkeeping documents related to Tulare hospital's management.

The DA's office collected 30 terabytes of digital evidence during its investigation, Tulare County District Attorney Tim Ward said.

When the investigation started, Ward said detectives didn't know the scope would be so large.

"What started out as a few search warrants has turned into over a dozen such warrants, where two investigators were necessary," Ward said in march 2018. "We currently have a team of multiple of investigators and …. doubling in size in the near future."

He asked for patience over the course of the investigation.

"I assure the public our office has all the resources available committed to seeing it through," Ward said before charges were filed. "We will see this through to conclusion."

By October 2018, the same year the hospital reopened after a year in the dark, prosecutors had seized $1.6 million in bank accounts controlled by Benzeevi.

This is a developing story. Check back later for more details.

This article originally appeared on The Record: Plea hearing scheduled for Friday in Tulare hospital corruption case