A federal judge has dismissed a significant criminal case against executives Brian Moore, Edward Cota, and another defendant, stemming from allegations of a $400 million kickback scheme involving referrals to hospitals operated by Tenet Healthcare.
The decision, made by Judge Amy Totenberg, reflects the government’s protracted legal battle over the past eight years, with the judge criticizing the prosecution’s strategy as highly irregular.
Moore, now in his late 60s and previously the CEO of Atlanta Medical Center, along with Cota, the president and CEO of Clinica de la Mama, has consistently maintained their innocence throughout the lengthy proceedings.
Totenberg noted in her ruling that the case has a longstanding history, extending over 25 years, and the government began investigating the alleged scheme back in May 2012.
Notably, the judge pointed out that there were no allegations suggesting direct financial benefits for individuals involved in the alleged fraudulent scheme, nor was there any claim that Tenet received payments for services that were not actually rendered.
Emily Strongwater, Cota’s attorney, welcomed the ruling as a victory against what she described as the prosecutors’ overreach and delay.
She expressed confidence that if the case had gone to trial, Cota and the other defendants would have been acquitted.
“Today’s decision sends a clear message to the Department of Justice: the power to bring criminal charges must be exercised with responsibility, fairness, and urgency,” Strongwater stated, reflecting the relief felt by her client and the other defendants.
The defendants have argued repeatedly that the government lacked essential evidence to support its claims.
In her order, Totenberg emphasized this lack of evidence, confirming that the prosecution had not established any wrongdoing by Holland, Moore, or Cota.
The prosecution alleged that Holland and Moore had orchestrated a multimillion-dollar scheme to funnel patients from Clinica de la Mama to their hospitals, leading to fraudulent billing practices involving federal health care programs.
They claimed Tenet, through Holland and Moore, had paid over $12 million in bribes to ensure that patients gave birth at their hospitals.
However, Holland, Moore, and Cota maintained that the payments to Clinica de la Mama were for legitimate services, including managing a physician residency clinic and conducting community outreach.
Strongwater argued that Clinica de la Mama served as a vital resource for thousands of women in underserved communities by providing critical prenatal care.
She pointed out that despite the government’s sweeping fraud claims, there was no evidence that patients were harmed or not provided with the adequate services they were promised.
Furthermore, Totenberg’s ruling underscores that there was no financial loss associated with the claims, nor any evidence of wrongdoing by the clinic’s management.
In a related note, Tracey Cota, Cota’s former wife, was also implicated in the operations of Clinica de la Mama and had been prosecuted previously alongside Tenet executive Gary Lang.
Both of them had entered guilty pleas to conspiracy charges in 2014, having admitted to violating the federal Anti-Kickback Statute by soliciting and receiving remuneration for Medicaid patient referrals.
Totenberg mentioned that the prosecution’s attempts to use statements from alleged co-conspirators at trial generated significant delays in the proceedings against Holland, Moore, and Cota.
In September 2024, the 11th U.S. Circuit Court of Appeals permitted prosecutors to use certain statements from co-conspirators, including those made by Tracey Cota, who had also passed away by that time.
The judge highlighted the challenges faced by the defendants due to the loss of key witnesses — including the former lawyer for Tracey Cota and other character witnesses — many of whom had died, further complicating the case.
Additionally, evidence had been lost, and several memories had begun to fade, making it difficult for the defendants to mount a defense effectively.
Totenberg pointed out that there was no evidence indicating that Holland, Moore, or Cota constituted a current or future threat to the health care system or the public.
She concluded with the statement that the protracted investigations and the lengthy time the defendants had spent under criminal indictment necessitated that the case come to an end.
After over a decade of legal turmoil, Totenberg’s ruling marks a significant victory for the defendants, allowing them to finally move forward, absolved of charges they believed should never have been brought against them.
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