Loose Lips

District Seeking Up to $3.8 Million From Jeff Thompson

District officials want Jeff Thompson, the alleged shadow financier behind what federal prosecutors say was an illegal effort to get Mayor Vince Gray elected, to pay up to $3.8 million to the Medicaid managed care organization he owns that is currently under city control.

A newly released audit of Chartered Health Plan, the Thompson-owned Medicaid MCO that the city took control of last year because of its shaky finances, found that Thompson owes the company $2.8 million in federal income tax refunds. Auditors also say that there isn't sufficient documentation to support $1 million that Chartered paid to a Thompson-owned health clinic, Chartered Family Health Center. The city is asking Thompson to either provide records justifying those payments or to reimburse Chartered the $1 million.

This is not the first time that payments from the Thompson-owned Chartered to the Thompson-owned Chartered Family Health Center have been questioned. Thompson settled with the District in 2008 after the city alleged in a civil lawsuit that the health center had overbilled by nearly $4 million. An audit of Chartered Health Plan's 2005 books found that Thompson’s clinic was charging Chartered more than double the highest rates paid to other clinics for the same services.

In 2004, Thompson refunded the city $2 million after the health center failed to fulfill its contract and keep the center open 24/7, the Washington Times reported.

A. Scott Bolden, who is representing Thompson on Chartered-related matters, had no comment on the audit. City officials are having a teleconference about Chartered and the money they say Thompson owes shortly. LL will update as needed.

Update: Yikes, more bad news for Thompson. The audit also revealed that in order to pay the 2008 settlement with the city, Thompson (or, technically, D.C. Healthcare Systems, Chartered's Thompson-owned parent company) and Chartered took out a $14 million loan from Cardinal Bank. Only interest payments on the loan have been been made so far, but payments on the principal came due last November. If Thompson defaults, Cardinal can cash in the $14 million worth of Chartered's assets the bank is currently holding. Thompson would be legally bound to pay Chartered back, but the big question is whether he'd be able to.

Screengrab courtesy of Charles Parsons

  • truth hurts

    DC will collect only a fraction, at best, of the dough Thompson owes. In the past 5 to 10 years, Thompson and DC apparently exchanged close to a billion dollars.

    One city, baby.

  • Drez

    Fuck Thompson. He's done.
    Odds for a Gray indictment still being before March Madness?

  • Welllllllll!!!!!

    This stuff is waaaaay out of our lane, folks.
    This stuff is only a drop in the bucket compared to the defense contractors.
    And this stuff will go the way of the $4000 toilet seats: right down the crapper with the rest of the crap.
    This stuff is the way they roll in this country and it is why so much money is spent to elect politicians who play the game so well for the real power brokers.
    This stuff will never cease and Jeff Thompson, Vince Gray, Adrian Fenty, Anthony Williams, Sharon Pratt Kelly and Marion Barry are/were just pawns in a chess game.

    I doubt that anyone one will be charged, indicted or put on trial much less found guilty or imprisoned for any crimes related to this shit. There are too many players involved and the domino effect would reach all the way back to the Justice Department and every corner of our great nation. All of those lackeys (national and local)were put in place by all of the power players in this country and in this town.

    And who elected them?: "I HAVE SEEN THE ENEMY AND HE IS US!", SAID POGO.

  • Drez

    Deflect, distract, deny.

  • Drez

    Let justice be done though the heavens fall.

  • Welllllllll!!!!!

    If only your words were true, Drez.
    But I hope you know the Heavens will never fall and neither will the political movers and shakers on this earth.

  • Drez

    No reason not to try.

  • newcomer

    and the beatings continue

  • TheContrarianOne

    Of course Thompson can repay the loan. But, he will certainly do so as frugally as most businessmen do.

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  • Natural Law

    Jeff Thompson and A. Scott Bolden, two clowns that deserve each other’s sad company (in jail). Add Frederick D. Cooke Jr. to the lineup and you've got a lock on the idiot and fraudster trifecta. Can't wait for these clowns to fade into history so that DC can evolve into respectable place where fraud and kickbacks no longer rule the day.

  • Green Eyeshade

    Our main prosecutor here in DC is waaaaay too tangled up in the bogus "leak" prosecutions against intelligence community whistleblowers to give a shit about a sub-million dollar political corruption ring controlling DC politics.


    Machen has been tied up with the probe of "leaks" of alleged national security secrets since a few days after Kwame quit DC Council in disgrace. A month later, in July, Machen did score the guilty plea from Jeannie Harris, but there has been virtually zero progress since then against the command-and-control structure of the Gray campaign.

    Why should we believe Machen is ever going to put the Gray campaign case in front of a grand jury? He can collect oodles of better publicity going after "national security" threats. And, note, Holder will be holding over as US Attorney General into Obama's second term.

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