Harrisburg, PA – A former workers’ compensation director at a Clinton County nursing home is under federal scrutiny for allegedly embezzling over $500,000 through a kickback arrangement involving a local physician.
Paul D. Polen, 71, of Lock Haven, was charged in U.S. Middle District Court with conspiracy to steal from programs receiving federal funds. Polen has agreed to plead guilty and forfeit $628,450—a figure exceeding the estimated $528,450 loss.
A History at Susque-View Home
Polen worked at Susque-View Home Nursing and Rehabilitation Center for three decades, beginning as director of security and eventually overseeing its self-funded workers’ compensation program. His role included processing paperwork for employees’ claims.
In 2022, Clinton County commissioners sold Susque-View to Allaire Health Services of New Jersey for $12.5 million. Financial discrepancies surfaced shortly after the sale, prompting authorities to investigate, Commissioner Jeff Snyder confirmed.
The Kickback Scheme
According to court filings, Polen approached an emergency medicine physician in 2002 about a consulting position. Polen offered the job under the condition that the doctor kick back 50% of his compensation to him each month. The physician, whose name remains undisclosed, performed limited monthly duties, including employee medical evaluations and assessments of Polen’s own workers’ compensation claims, which allowed him to work fewer hours without a pay reduction.
To facilitate the scheme, the physician issued monthly checks to a shell company Polen created, listing his wife as its nominal president. Payments initially averaged $1,700 but later grew to $2,500. Meetings to exchange funds took place discreetly, often at the physician’s home.
The physician resigned from his role before the nursing home’s sale, Snyder added.
Legal Proceedings
Polen’s plea agreement requires cooperation with the Internal Revenue Service, including filing all overdue and amended tax returns. A court date has yet to be set.
This case underscores the need for stringent oversight in managing federally funded programs within long-term care facilities. With millions in Medicare dollars at stake, accountability is essential to ensure resources support quality care for residents.