Wellcare website is working and they have sent response out.
WellCare Responds to Government Investigation
No Impact to Continuing Operations
TAMPA, Fla.--(BUSINESS WIRE)--Oct. 25, 2007--WellCare Health Plans, Inc.
(NYSE: WCG) today announced actions it is taking in response to the
search warrant executed by federal and state agencies at the Company's
headquarters on October 24, 2007.
"We are responding to yesterday's developments in a direct, prompt and
orderly manner," said Todd Farha, chairman and chief executive officer.
"We are committed to cooperating with the government throughout this
process."
Consistent with the statement of the U.S. Attorney's Office yesterday,
this investigation has not impacted the Company's ability to serve the
best interest of its members, providers and business partners.
Simultaneous with its efforts to ensure that the business continues to
operate smoothly, the Company has undertaken a series of actions to
respond to the government investigation. Specifically, the Company has:
-Been in direct contact with its Board of Directors, including members of
the audit committee;
-Committed to cooperating with the federal and state authorities involved
in the investigation;
-Retained the law firms of King & Spalding and Greenburg Traurig to
assist the Company with responding to the investigation;
-Engaged with the Company's auditors, Deloitte & Touche LLP;
-Been in contact with key constituents, including state and federal
regulators in each of the Company's markets.
"Our primary focus is to make sure that our operations are running
smoothly and that we are continuing to pay provider claims timely,
answer our customers' calls and provide access to covered health care
Love the front page of their website where they tout their PFFS plans. It says "all for low or no premiums." That's a CMS violation. You can't say "no premium". You can say "no plan premium." Admittedly they have bigger problems to worry about now but they really should try to comply with more rather than fewer CMS rules if possible. ))
Winter
Originally Posted by scottfree
Wellcare website is working and they have sent response out.
WellCare Responds to Government Investigation
No Impact to Continuing Operations
TAMPA, Fla.--(BUSINESS WIRE)--Oct. 25, 2007--WellCare Health Plans, Inc.
(NYSE: WCG) today announced actions it is taking in response to the
search warrant executed by federal and state agencies at the Company's
headquarters on October 24, 2007.
"We are responding to yesterday's developments in a direct, prompt and
orderly manner," said Todd Farha, chairman and chief executive officer.
"We are committed to cooperating with the government throughout this
process."
Consistent with the statement of the U.S. Attorney's Office yesterday,
this investigation has not impacted the Company's ability to serve the
best interest of its members, providers and business partners.
Simultaneous with its efforts to ensure that the business continues to
operate smoothly, the Company has undertaken a series of actions to
respond to the government investigation. Specifically, the Company has:
-Been in direct contact with its Board of Directors, including members of
the audit committee;
-Committed to cooperating with the federal and state authorities involved
in the investigation;
-Retained the law firms of King & Spalding and Greenburg Traurig to
assist the Company with responding to the investigation;
-Engaged with the Company's auditors, Deloitte & Touche LLP;
-Been in contact with key constituents, including state and federal
regulators in each of the Company's markets.
"Our primary focus is to make sure that our operations are running
smoothly and that we are continuing to pay provider claims timely,
answer our customers' calls and provide access to covered health care
I hope it did not escape your attention that one of Wellcare's directors sold 10,000 shares of company stock the same day that Bush vetoed the SCHIP bill (Oct 18th) WellCare Director Sells Stock. He grossed over $1.12 million. The stock was actually over $112/sh, at the time of his trade, but that was his exercise option. Recently, the stock is $47/sh and dropping rapidly.
Also, one of the board members, Ruben Jose King-Shaw, is the former deputy administrator and chief operating officer of the Centers for Medicare & Medicaid Services and former secretary of the Florida Agency for Health Care Administration. He has got to pull a lot of clout, but I think that Director Neal Moszkowski, who is head of the board, is tainted with this disclosure, and will negate Ruben's influence. Say bye, bye to Neal!
I met with Don Garcia from Wellcare, He said it was mainly involving their childrens health medicaid plan. He did say everything is "business as usual", which is scarey phrase in business.
I hope it did not escape your attention that one of Wellcare's directors sold 10,000 shares of company stock the same day that Bush vetoed the SCHIP bill (Oct 18th)
I'm not defending WellCare. I have sold 1 case with them this year. However, you do realize that directors/officers/executives of a company can't just go sell their shares like you an I can. It must be filed ahead of time. So this sell was pre-arranged. Not that big of a deal. If you'll look here:
You'll see these were "Automatic", along with ones on September 17th, August 16th, July 16th, June 18th, May 16th, April 16th, March 16th and February 16th. Can we then assume news from those dates could have warranted some connection? Absolutely not.
For example, on September 17th, Hillary Clinton unveiled her government run healthcare plan. This same director sold 10,000 shares that day. Oh my goodness, he knows something!! He's in bed with Hillary (I bet Bill loves that).
So in reality, the connection between the the stock sale and the veto of the SCHIP bill is non-existent. Or is it? Maybe Bush is trying to stick it to him for his connection with Hillary above. What a tangled web we weave.
I realize the trades were "automatic"... that still does not preclude insider information. He certainly has control over whether or not to place sales in play "automatically" and how much. If a corporation executive knows information that will, in most likelihood, cause an adverse reaction on Wall Street to his company's stock, he is in a position to make changes to that "automatic" trade. The question is: How much lead time did he have? and was there enough time for others on Wall Street to gain that same information? I am not a lawyer, but I think the line is very thin here. Protections were put in place after the scandals of Wall Street insider trading, but still left enough wiggle room for some to take advantage.
Are you saying Maszkowski made trades of over $1million a month all year? Otherwise, your point is a little dull.
Re Wellcare: I find it interesting that George Soros and financiers bought this co about 4 yrs ago and that is when stock started to soar. Prior too, A dr. Karen Patel had owned it, then sold to Soros.
The article was posted on the Mike Savage website....may still be there. Interesting all this foreign money coming into Medicare-Medicaid.
More Wellcare stories
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