The Mount Sinai Health System part of Israels largest system of public health care has paid 2 million to resolve four lawsuits brought by the U. S. Department of Justice a court source said on Tuesday.
The settlement resolves allegations stemming from a wrongful scheme designed to defraud a prospective donor to an undercover sting operation. The employee is seeking about 1. 5 million in damages. The allegations are still under investigation the source said.
The settlement resolves claims that blindness and deafness were caused by the scandal the source said.
Regardless of the settlement Kenan Lindenberger president of Mount Sinai Health would continue to oversee the board of directors and oversee the entire organization the source said.
The DOJ suspected the money laundering scheme involved some two dozen employees of Cozy LLC Inc. a London-based charity that supports more than 330000 deaf people who are deaf and hard of hearing in the United States.
Some witnesses attended fund-raisers of the scheme the sources said. The employees did not testify in court sources said which led the prosecutors to pursue lawyers for them.
Forensic accounting for Cover DIA led by Hal Zeidan was highly scrutinized by investigators and seemed to track against police investigations.
Justice Department spokesman Judd Deere declined to comment when reached by Reuters.
The company based in Mountain View California has said it never agreed to pay the 1. 4 million settlement. It also said in a court filing in August that there was no evidence that Mount Sinai employees committed a crime.
In 2012 Michael Lesser the director of the Mount Sinai Health System in Albany California told a congressional hearing that he could not recall a case in which any major outdoor event in the Mount Sinai Health System sponsored by the Foundation was held their statutory course.
The settlement is for the employees to recover their lost earnings company spokeswoman Tareen Merchant told Reuters.
About 3600 people were infected with HIVAIDS at Mount Sinai Health System facilities during a 30-month period ending in 2016 according to the lawsuit.
Healthcare institutions are prohibited from providing HIV care with the exception of at-home interventions against HIV which are available at no charge to patients who contract infection at the institution the lawsuit said.
A federal court in Los Angeles reached a similar conclusion in December in a case by a co-worker who had asked Mount Sinai Health System to halt a hepatitis C treatment program after her co-workers received a 350000 settlement for the same problem.
At least 28 lawsuits have been filed on behalf of 35 deaf people saying the company helped people make false claims without consent the Journal of Advocacy and Legal Medicine reported last year.
The people did not testify in court in which a matter of whether to award workers 3 million in punitive damages was ultimately decided not by a jury.