Healthcare CEO, Investor Charged With Embezzling Federal Grants To Buy CRE
The former CEO of Silver State Health Services, alongside a real estate investor, has been indicted for embezzling $2M of federal grant money to purchase commercial real estate properties.
David Linden, who served as the nonprofit healthcare center’s chief executive, and property investor Rich Saga were arraigned last month on 13 charges by the Department of Justice, including six counts of federal program theft, two counts of money laundering and two counts of money transactions in criminally derived property.
If convicted, the two each face a maximum of 121 months — just over 10 years — in prison. Additionally, the DOJ is also asking a judge to force Linden and Saga to forfeit any property obtained with the allegedly stolen funds.
SSHS was a healthcare center that was created to provide benefits and services to medically underserved populations in Las Vegas, a mission that resulted in it receiving millions of dollars in federal grants from the Health Resources and Services Administration, according to the now-unsealed indictment filed May 13.
The grant funds were earmarked for employee salaries. Instead, between June 2019 and April 2022, Linden and Saga funneled the grant money into bank accounts that they controlled, according to the indictment.
The money was then allegedly used to buy office buildings at 2965 S. Jones Blvd. and 7373-7375 Peak Drive in Las Vegas.
As part of the grant requirements, SSHS was to submit financial statements to HRSA that disclosed how the money was being spent. However, the DOJ claims that SSHS created and submitted false audit reports to hide the purchases.
The FBI and the U.S. Department of Health and Human Services, Office of Inspector General conducted the joint investigation. A jury trial is set to begin Dec. 2.
