Father And Son Sentenced For Defrauding Kaiser Out Of More Than $1.5M

May 28, 2022 13:00 pm · 9 comments

A father and son were sentenced on Friday for conspiracy to commit mail fraud through a scheme to embezzle medical equipment owned by Kaiser Foundation Hospitals and Health Plan, Inc., the Department of Justice announced.

Anthony Montanelli, 34, and his father, Steven Montanelli, 63, both of San Ramon, pleaded guilty to the charges on Jan. 14.

According to the plea agreement, the men worked for Kaiser as biomedical engineers and were responsible for repairing and servicing ultrasound equipment. The men used their positions to order new ultrasound parts that were supposed to be used for repairs or maintenance, but instead were diverted into their own side business, Pacific Coast Imaging (PCI). The defendants then sold those parts through PCI for their own profit. The pair also did not disclose to Kaiser that they had the side business, which they operated during their Kaiser work hours.

The father and son admitted that from February of 2010 to about April of 2018 they worked together to defraud Kaiser. They even went as far as to rent a storage facility to stockpile new, used, and decommissioned Kaiser-owned ultrasound systems and parts. Some of the Kaiser inventory was sold or leased to PCI customers. The pair also admitted that they would report items as decommissioned so that they could divert the to their side business.

The Montanellis admitted that the value of the loss to Kaiser exceeded $1.5 million. Anthony Montanelli has given Kaiser restitution in the amount of $449,955 so far, bringing the total restitution amount to $1,649,955, according to the DOJ.

Anthony Montanelli was given a year and a day in prison for his crime and he is due to surrender on or before July 1. His father Steven has been given five years’ probation.

Both are ordered to pay $1.2 million within 90 days, as well and a fine of $150,000 each.

Barbosa May 28, 2022 at 1:22 PM

Always heartwarming to hear stories of dads involved in their kid’s lives.
Absent a father figure, too often kids make a wrong turn in their lives.

Martinezmike May 28, 2022 at 3:13 PM

Agree
It’s terrible the way government goes after a small family business

Anon May 28, 2022 at 2:02 PM

The son was given a year and a day of prison time and his father give five years probation???? An they pay 1.2 million in 90 days and $150,000
each? If they can’t pay it, that will probably cost every Kaiser member. Stop coddling these crooks!

John May 28, 2022 at 2:09 PM

I don’t understand why someone spends 8 years stealing at least $1.5m worth of stuff from an employee doesn’t get jail time. As if stealing from a big business doesn’t hurt anyone.

Concerned Citizen May 28, 2022 at 3:20 PM

But the real question is….

How much time will the CEOs of Kaiser do for defrauding their patients?

Oh that’s right… none.

As long as the government is paid off that’s all that matters.

Obviously the father and son didn’t pay them off.

redrazor May 29, 2022 at 11:57 AM

+1

Stallion May 29, 2022 at 2:27 PM

Any evidence, “Concerned Citizen”, that Kaiser knew but didn’t care or were silent? Serious accusation! Is it just another conspiracy theory? Source of information please.!
The perpetrators got off light.

anon May 28, 2022 at 3:24 PM

Pathetically light sentencing. What is this, the UK?

Ricardoh May 28, 2022 at 5:02 PM

How many of us think if we steal 1.5 mil we will get probation. Hard to believe.

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