Holland & Knight Wins $21 Million For Venezuelan Hospital in Fraud Case
MIAMI (October 25, 2016) – After four years of representation, Holland & Knight secured final judgments in excess of $21 million for its clients Policlinica Metropolitana, one of the largest private hospitals in Venezuela, and its Florida subsidiary, Medex Trading, LLC. The judgements were issued on October 21.
Following a bench trial before Judge John Thornton of Florida's Eleventh Judicial Circuit Complex Business Litigation Division, the final judgments were entered against six corporate and individual defendants for the entire amounts sought on various claims, including claims for commercial bribery and fraud.
Following an extensive internal investigation that uncovered various fraudulent schemes perpetrated by several Policlinica Metropolitana employees and the former manager of Medex, Holland & Knight Partners Alex Gonzalez and Israel Encinosa, together with Associate Michael Rothenberg, used forensic accounting and other evidence to prove that from 2003 to 2010 multiple insiders conspired, through offshore companies, to steal over $15 million from the hospital through various schemes.
Most significantly, as part of a commercial bribery scheme, more than $6 million in kickbacks were paid to insiders and more than $5 million in illicit profits retained by an outside vendor, Premium Medical Group, Inc.