Randy Ellis
05/04/2000
The state Health Department's deputy commissioner solicited bribes from nursing home owners in exchange for regulatory favors and used at least a portion of the payoffs to gamble on horse races, an FBI agent alleged in a sworn affidavit released Wednesday.
Agents arrested the suspended deputy, Brent VanMeter, at his office Tuesday evening after following him as he drove to pick up what agents believe was payoff money from an Oklahoma nursing home owner and then allegedly used that money to place bets at a legal gambling business.
VanMeter, 46, of Nichols Hills, appeared in federal court Wednesday before U.S. Magistrate Valerie Couch. He was ordered to return for a preliminary hearing at 1:30 p.m. May 10 on a one-count complaint of soliciting a bribe.
If convicted on the charge, he faces up to 10 years in prison or a $250,000 fine.
VanMeter was released on his own recognizance pending further legal proceedings.
VanMeter's attorney, Mack Martin, said his client plans to plead not guilty.
VanMeter's stunning arrest Tuesday followed a day of frantic activity in which federal and state agents served 13 federal search warrants at the health department and five other Oklahoma City locations. VanMeter and five other department employees were suspended with pay Tuesday and two more were suspended Wednesday - raising the total to eight.
"I fully expect that there will be additional charges filed against additional people," Oklahoma Attorney General Drew Edmondson said Wednesday, adding he would not be surprised if future arrests include people both inside and outside the department.
Edmondson said it's possible that some irregularities by state health officials created life-threatening situations within state nursing homes.
Gov. Frank Keating called the burgeoning health department scandal "an issue of raw, unadulterated corruption."
"We need to assure the public that this will not recur - that this is intolerable and that we're going to get to the bottom, and that's why I have great faith in the attorney general and the U.S. attorney to do that."
Toward that end, the state Board of Health conducted an emergency meeting Wednesday, during which it named Jerry Regier, the governor's secretary of health and human services, as acting department director.
Noting allegations that some nursing home owners have in the past been given prior notice of "surprise" inspections, Regier immediately instituted a new policy banning owners from being told in advance when inspectors would arrive.
Dr. Jay A. Gregory, president of the state Board of Health, said the board has been conducting its own investigation into nursing home activities and will reveal findings at its June 1 meeting.
The FBI launched its investigation in 1996 after several individuals approached the agency with allegations of corruption within the nursing home licensing and regulation section of the department, FBI agent Mark D. Seyler said in his sworn statement.
One confidential informant told agents that VanMeter was offering preferential treatment to certain Oklahoma nursing home owners and that the informant had personally witnessed VanMeter offer to direct health department survey teams to "target certain long-term care facilities in the state of Oklahoma for harsh surveys and inspections.
"Because negative inspections frequently result in significant fines and other financial penalties, Brent VanMeter had indicated that he might be able to use such regulatory power to drive down the price of certain nursing homes so they might be acquired by an owner cooperating to financially enrich Brent VanMeter," the agent reported he was told.
Seyler said the informant reported he also had heard other Oklahoma nursing home owners speak of "passing the hat" to pay off VanMeter.
Based in part on information provided by the informant, agents obtained authority to wiretap telephones used by VanMeter and others in the nursing home industry.
During several telephone conversations, the FBI says VanMeter can be heard "offering preferential treatment to a select number of nursing home owners."
Fraudulent activity uncovered through wiretaps includes VanMeter offering to warn owners of surprise inspections, to transfer patients to preferred owners and to target owners not in VanMeter's favor for harsh regulatory treatment.
The FBI has overheard VanMeter "requesting, soliciting and demanding payments from nursing home operators," the affidavit states.
During one April 17 telephone conversation with a nursing home owner, VanMeter agrees to backdate documents in health department files so the unnamed owner's nursing home could receive about $50,000 in Medicare or Medicaid funds, the affidavit states.
VanMeter agreed to fraudulently change health department records for 2 percent of the $50,000, according to the FBI. VanMeter later told the owner that other department employees were now "on board" and would try to help the nursing home obtain the federal funding, the affidavit states.
Prior to his arrest, VanMeter was under FBI surveillance when he met the unnamed nursing home owner and received a package containing what is believed to be his payoff, the affidavit says. After receiving the package from the nursing home owner, VanMeter then went to bet on horse races, the FBI said.
VanMeter was arrested at about 5:20 p.m. Tuesday at his office after returning from gambling that afternoon.
During earlier FBI surveillance, VanMeter was observed frequently betting on horse races during afternoon working hours when he should have been at his job, the affidavit says.
VanMeter and other department employees weren't the only ones targeted with search warrants Tuesday.
Nursing home owner E.W. "Dub" Jiles of Nichols Hills was the subject of four search warrants, his attorneys confirmed Wednesday.
Federal search warrants were served on Jiles' home, his office, his car, and the Edmond law office of Edward Lee, who has handled some civil matters for Jiles.
Federal court officials refused to release copies of any of Tuesday's search warrants or search warrant returns Wednesday, saying they had been placed under a protective order.
However, Jiles' attorneys, Carl Hughes and Kyle Goodwin, readily released such records that pertained to their client, saying Jiles had "nothing to hide."
Those records showed that federal agents seized a wide variety of records, ranging from nursing home financial records to photos of horses and people.
Meanwhile, The Oklahoman has learned that some of the allegations lodged against VanMeter this week are similar to complaints that a longtime nursing home administrator has made for four years.
Floyd Propps, an Oklahoma City attorney who has worked as a nursing home administrator, told the FBI about allegations of illegal activity and neglect he discovered while managing the Choctaw Living Center.
Propps filed a 1998 lawsuit in Oklahoma County District Court, accusing VanMeter of using his influence to get Propps fired as a receiver of the foreclosed property and to get another company hired. The lawsuit is scheduled for jury trial June 9.
A 48-year-old resident's death went undiscovered for six days at the Choctaw Living Center in January.
Propps also contacted a federal survey team after accusing state health officials of not citing all the problems at the Choctaw Living Center.
CONTRIBUTING: Staff writers Mick Hinton, Paul English, Diana Baldwin, Jim Killackey and Ed Godfrey.
© The Oklahoma Publishing Co. and its subsidiary, Connect Oklahoma Inc.
Article may be downloaded for personal use or research but not for distribution.
PHOTOS may not be downloaded without written permission from The Oklahoma Publishing Co.