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A bank in California is suing UnitedHealth and a UnitedHealth data analytics unit, OptumInsight, over losses allegedly caused by a former employee who helped set up a fraudulent scheme that used OptumInsight accounts receivable (A/R) to secure financing from factoring providers. In factoring arrangements, borrowed funds are backed by the cash the parties expect to receive from customer payments on the receivables. The former UnitedHealth employee, Luke Steiner, worked with people at other companies to submit fake invoices to the Axos factoring department, the bank says in a complaint filed August 29 in the U.S. District Court for the District of Minnesota.
Axos, a federal savings bank based in San Diego, has sued for the recovery of $4.4 million to supplied in connection with the scheme. The company has accused the defendants of fraud and conspiracy to commit fraud.
Steiner was sentenced to two years of probation in 2023 and ordered to pay $13 million in restitution in connection with the fraudulent factoring scheme, according to the U.S. Justice Department.
UnitedHealth declined to comment. Representatives for Axos and Steiner could not immediately be reached for comment.
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From: BenefitsPRO
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