Business

Former WebMD execs plead guilty

NEWS IN BRIEF — Posted Jan. 31, 2005

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WebMD announced that three former executives on Jan. 7 pleaded guilty in a South Carolina federal court to accepting kickbacks and accounting fraud.

Robert W. Davids, Kevin M. Kennedy and Glen S. Moss each pleaded guilty to one count of mail fraud -- and Kennedy to a count of tax evasion -- for acts committed while they were employed by Medical Manager Health Systems, now known as WebMD Practice Services and a subsidiary of WebMD. The three men resigned or were fired between 2002 and 2003, said WebMD, which acquired Medical Manager in 2000.

According to the U.S. Attorney's Office in South Carolina, the three men and other yet-unnamed individuals engaged in schemes that among other things artificially inflated WebMD's revenue and earnings between 1997 and 2002.

WebMD is cooperating with the ongoing federal investigation and said that so far it had not uncovered any information that would require it to restate previous financial results.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/01/31/bibf0131.htm.

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