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BULLETIN: Posted Monday, May 12, 11:50 pm
NORTHWEST DISPATCH CRISIS:
MERCY ADMITS IT IS 'INTEGRATED OPERATION'
WITH ILLINOIS FIRM UNDER FEDERAL INDICTMENT
By JOHN M. WYLIE II, Editor, Copyright 2008, Oologah Lake Leader LLC
As Northwest Rogers County Fire District directors prepare to pick a new dispatch service at 7 p.m. Tuesday night at Station One, the apparent low bidder has admitted that it "essentially became an integrated operation" with an Illinois company facing a 24-count federal felony indictment.
The admission, found in documents obtained from the U.S. District Court for the Southern District of Illinois, sharply contradicts claims by the Oklahoma company, Mercy Regional of Oklahoma, that it "was not involved in any business related operations" with the indicted company, Mercy Regional Emergency Health Services of Benton, Ill.
However, the court-appointed receiver for the Illinois company already has seized five vehicles from Mercy Regional of Oklahoma headquarters in Owasso: a 2007 ambulance, a 2008 Ford F-250 Heavy duty quad cab, a 2006 Ford Expedition, a 2002 Ford Windstar and a 1999 Ford wheelchair van.
A sixth vehicle, a 2000 Freightliner ambulance was undergoing repairs and will be returned to Illinois later, said receiver Tom Jordan.
In his first report to the U.S. Attorney and the court Jordan also said:
* "We continue to look for additional equipment and resources that are not under the corporation's control."
That important because Mercy is offering to provide dispatching services from its Owasso facility to Northwest for $1,500 a month, compared to the initial monthly proposal of $2,850 from the City of Chelsea, which now dispatches for Oologah and Talala police and OTEMS ambulance.
* Duke Dixon and his wife Lindsey, who now head the Oklahoma operation, had been voluntarily removed from the Illinois payroll. They took control of the Oklahoma operation after former Oklahoma CEO Clayton Hobbs was indicted along with Mercy Illinois.
* "Limited cooperation from the accounting department in Oklahoma and poor record keeping practices" are complicating Jordan's work.
* A total of $18,000 in checks written on a Mercy Illinois account have been determined to be forgeries. A criminal investigation has been started and officials are looking for any other checks.
Dividing the cost of current and past dispatching services between the Oklahoma and Illinois firms-both of which currently use the Mercy Oklahoma dispatch facility in Owasso--and ownership of $11,344.75 in communications equipment are among the major issues being debated between the receiver and Mercy Oklahoma's attorney, Daniel D. Draper III.
In a testy email dated May 5, Draper accused the receiver of trying to harm Dixon's reputations because of actions taken by Hobbs, the former CEO of both companies.
Hobbs, like Mercy Illinois, also faces 24 federal felony counts involving mail fraud, health care fraud, lying to employees about their health and retirement plans, failing to remit years of withholding taxes to the IRS and lying to the Department of Labor.
"Your continued intimation th(at) Centurion (the corporate parent of Mercy Oklahoma) or Mr./Mrs. Dixon have somehow created some scheme to dupe and take assets from Mercy Illinois is without any merit and will not be tolerated anymore.
"They are trying to unwind and separate these matters, just as you are, and it is not an easy task," Draper said.
The documents showing how entangled the operations of Mercy Oklahoma and Mercy Illinois had become were obtained by the Leader late Monday evening.
The Leader had cited other sources in reporting that the two entities were closely tied, but Centurion/Mercy Oklahoma had heatedly denied any business ties.
However, Draper said in an email to Jordan, "The unwinding of what essentially became an integrated operation of two separate entities as a result of Mr. Hobbs' decisions/actions (and lasting for nearly a year) cannot be unwound in a matter of days."
Efforts to reach Northwest Chief David Puckett and board chair Louis Gardner for comment were unsuccessful. The Leader provided copies of the documents by email.
Meanwhile, a court filing Monday indicates that Hobbs may be considering changing his not guilty plea to at least some counts.
His attorney asked for a continuance of his trial, now set for June 30, based on the volume of documents on which the government is basing his case.
Attorney Justin Kuehn said the government has provided over 5,500 documents and advised the defenses that documents filling 70 boxes are available at the U.S. Attorney's office.
"The defense, despite diligently reviewing discovery, does not yet have sufficient understanding of this prosecution to properly advise the defendant about the possibility of changing his plea," Kuehn said in court papers filed Monday.
The memo from Mercy Oklahoma attorney Draper to receiver Jordan raised enough concerns for the receiver that he forwarded it to federal prosecutors, the IRS, and the Inspectors General of the Departments of Labor and Health and Human Services.
"This is an email I received today. I have new concerns about Mercy Regional's ability to recover items we need in Owasso, Oklahoma. Any ideas?", Jordan said in his cover note.
The email also indicates a dispute between Draper and receiver Jordan over financial responsibility for "roping arenas, horse stabling, payments for land, furniture purchases, and personal expenses" which apparently stem from the time Hobbs was living in Oklahoma while serving as CEO or both Mercy firms.
"You need to direct those inquiries to Clay Hobbs, not Centurion (parent company of Mercy Oklahoma) or Duke Dixon. Those are Hobbs' items/issues and we will not be addressing those any further, and we will not tolerate any further suggestion that somehow Centurion or the Dixon's have some nefarious connectivity to those alleged items," Draper says.
Mercy Oklahoma receives a total of $614,000 in public funds to subsidize its ambulance operations in Vinita, Stroud, Fairfax, Cleveland and unincorporated Craig County.
State Rep. Chuck Hoskin has expressed concerns that if Mercy Oklahoma were linked to Mercy Illinois and assets started being moved back to Illinois, subsidy money could in effect be used to deal with issues having nothing to do with providing emergency medical services to Oklahomans.
Hoksins' 6th District includes all of Craig County and much of the Northwest Fire District. He was provided a copy of the new court documents by email late Tuesday night but could not be reached for comment.
The evolving situation leaves Northwest directors in a quandary: While Mercy has the low price in its dispatch proposal and offers a higher level of training for its dispatchers, the documented links to the criminal case in Illinois would seem to preclude any prudent elected official from providing it any public funds or responsibilities.
Adding to the mess is the government's civil action seeking forfeiture of assets obtained by Mercy Illinois or Hobbs using proceeds from their alleged criminal conduct.
That means some Oklahoma assets that were obtained with funds originally generated in Illinois may be subject to federal seizure to cover unpaid taxes, Medicare over billing and other claims.
Draper disputed Jordan's authority over assets currently under Centurion's control.
But District Judge Michael J. Reagan said in his order appointing a receiver that, "The Receiver shall have full and exclusive control over al assets including vehicles and equipment purchased by or paid by Mercy" Illinois.
Draper's email admits to several instances where supplies were purchased or bills were paid by Mercy Illinois to cover costs of Mercy Oklahoma.
Draper also refers to "the transfer and relocation of the corporate headquarters and main call center operations of Mercy Regional of Illinois," and protests that Jordan has no authority to order such a move.
How that would affect any dispatch agreement with Northwest also is unclear.
Click here to read the receiver's report
BULLETIN POSTED WEDNESDAY, MAY 7, 1:10 PM
BRIDGE CLOSED ON OLD HIGHWAY 88 BETWEEN OOLOGAH AND CLAREMORE
A bridge on Old Highway 88 between Road 450 and Road 460 was shut down right after noon on Wednesday.
Rogers County Emergency Management Director Bob Anderson said the bridge was cracked and the foundation was giving way on the east side.
He believes the 1940 WPA bridge was probably damaged in the previous rain storms.
Rogers County received about 4" of rain on Wednesday, causing local flash flooding on several area roads.
OOLOGAH STUDENT WINS ROBOTICS CONTEST
John Hart of Oologah (left) and Mariah Parker of Big Cabin watch their robot complete its programmed task during the State SkillsUSA Competition. The pair won first place in the state competition, qualifying them for the national contest.
Lester Leak is their Electrical Instructor at Pryor Campus Northeast Technical Center.
During the state competition, the team was given a problem that needed a robotic solution. They then wrote a program to control a servo robot and conveyor to solve the problem. They had eight hours to complete the project, including creating the program, paperwork, and flowchart. The robotics contest also consisted of online and written knowledge exams.
BOARD WANTS MORE BITE IN DOG RULES
By CHRIS EDENS, City Editor
Oologah Town Board members discussed toughening up regulations for dog owners on Monday night and heard an update on the quiet zone for trains.
"Dogs running loose and constantly barking dogs have become a serious problem in the town of Oologah," Mayor Jerry Holland said.
Currently, dog owners can be fined $144 for a dog running loose or a dog that has become a nuisance because of constant barking. All dogs must have a current tag from the city. Proof of up-to-date vaccinations from a veterinarian must be provided to receive a tag. If a dog is caught without a tag, the owner can be fined $144. The cost of the tags is $4.
"People can get citations on a day-to-day basis if they don't correct the problem," Holland said.
He noted that it is not just a matter of the dogs being a nuisance, but it also a safety issue. He said all dogs in the city limits need to be vaccinated.
The board asked Police Chief Novale Thompson to increase enforcement of the city ordinances. Thompson said his department had issued three citations for dogs running at large last month.
Assistant Town Attorney Dale Jackson updated the board on the status of Oologah becoming a quiet zone for trains. The process has taken months, but Jackson said it appeared it would be happening soon.
"All indications are we're going to go silent within two months," Jackson said.
He told the board half of a 60 day waiting period had passed. He said after the 60 days he would send a 21 day notice to the railroad and then the quiet zone would take effect.
The board also approved changes to city ordinances concerning meeting times and dates. Starting next month the board will begin meeting at 9 a.m. on the first Tuesday of the month. Next month's meeting will be held on June 3.
PAID IN FULL
Members of First Baptist Church of Talala burn the mortgage on the new church building.
The congregation began construction in 1998 and held its first service in the new building on July 11, 1999. Rev. Lester Orwig said the congregation paid off the 20-year note in 10 years.
"Our conviction is that we commit ourselves to the Lord's agenda and He will provide whatever it takes to accomplish. God always makes provision for His purposes," said Orwig.
$600,000 DISTRICT 3 DEBT COVERED OUT OF TAX PROTEST FUND
By CHRIS EDENS, City Editor
Rogers County Commissioners voted 2-1 on Monday to transfer money from a tax protest account to cover unpaid bills for District 3.
Republican Commissioners Kirt Thacker and Mike Helm voted for transferring the money and Democratic Chairman Dan DeLozier voted against it.
Thacker needed the money to cover approximately $600,000 in unpaid bills to APAC for road paving work in his district. He asked for money from an account that has been set up in case of a sales tax protest.
One million dollars was placed in the account and two thirds of it is designated for the commissioners. Thacker's share of the money is $222,222. He said he needed all three districts' share of the money to cover the bills. Thacker said he would repay the money out of the upcoming budget.
Assistant District Attorney Barry Farbro recommended the commission wait one week to allow him time to research the legality of the transfer. He also suggested contacting the taxpayer, Latshaw Drilling, to see if they were willing to sign a release.
DeLozier said he was against transferring the money until Farbro had signed off on it.
"We don't have the D.A.'s opinion on this yet," DeLozier said. "In my opinion, we need to leave that money there."
County Treasurer Cathy Baker said based on a recommendation from the state auditors office the money should stay in the account for two more years.
"I'm not in favor of them moving those funds to cover their mismanagement," she said. "I'm very concerned. There are some serious legal questions. It's not a good situation the commissioners have put us in."
The commission approved transferring $666,666 into District 3. Thacker asked the county purchasing agent to pay the past due bills as soon as the money is in his account.
CENTRILIFT WORKERS SHIP ENCOURAGEMENT TO IRAQ
American forces in Iraq are getting some of the comforts of home, thanks to employees at Centrilift in Claremore.
Ron Barnett, maintenance and facilities manager, said the people at Centrilift have already sent four shipments to the soldiers. They would be glad to include items from others in the community.
They send items to a group of Marines and a group of women soldiers. They can also ship to another unit if the donor has a specific APO address.
Suggested items are baby wipes, Skin So Soft, pre-paid phone cards, hard candy, nuts, Pringles, body lotion, hair conditioner and feminine products.
SFC Erik Wolf wrote, "I am seriously struggling to find sufficient means to express how profoundly grateful we all are to you and the folks at Centrilift. ... The Pringles lasted about 5 minutes. The rest of the munchies are steadily being consumed at a feverish pace. Nuts are a huge hit with the troops.
"The ladies products were, by far, greatly needed and well timed. I'm talking tears of joy."
Barnett said, "We just want to show them that we are thinking about them and support them.
Centrilift employees will pack and ship items to the troops. Items can be delivered to the guard shack at 200 W. Stuart Roosa in Claremore.
WYLIE COMMUNICATIONS COMPLETES MAJOR NATIONAL PROJECT
The Manhattan Institute, a highly regarded New York-based national think tank, today released a major report on the asbestos litigation industry, which imposes "staggering costs, causing $70 billion in direct losses, bankrupting 80 companies…(and threatening) the very integrity of the legal system itself."
Wylie Communications Inc. of Oologah provided the principal research, writing and graphics for the in-depth, year-long project.
It continues an investigation begun in April 2006 by WCI President John M. Wylie II for the Reader's Digest and is the culmination of two years of work by WCI.
"The more I have dug into the asbestos litigation industry, the more shocked I am by the unconscionable greed and chicanery," Wylie told a national conference call unveiling the report.
Jim Copland, director of the Manhattan Institute Center for Legal Policy, said the report is the fifth in the Center's Trial Lawyers Inc. series. He contacted Wylie after his initial Digest investigation, "The $40 Billion Scam," was published in January 2007.
Copland was director of the project, which involved a half dozen Manhattan Institute participants in New York and three WCI employees in Oklahoma.
A key finding in the new report was that after several years' absence, mass screenings of individuals for signs of asbestos-related diseases were resumed in Oklahoma late last year, with events held in Bartlesville and Pryor.
Such screenings in the past have produced widespread abuses, first documented in court in a 2005 landmark opinion by Texas U.S. District Judge Janis Graham Jack.
The report also documents cases involving a judge seeking bribes from attorneys with asbestos cases, an asbestos lawyer who stole millions of dollars from his clients (some of whom died destitute), and other instances where both legitimate victims of asbestos and companies trying to settle claims were ripped off.
"The saddest part of the entire story is that many of the truly injured have received little or nothing while the attorneys, doctors and consultants have grown wealthy," Wylie said. "In a nation of laws, it is a disgrace that the legal system has not put an end to this nightmare."
WCI Vice President Faith Wylie took John Wylie's research and the thousands of pages of documents it had produced and reduced the data into a series of arresting, easy-to-understand graphics for the report.
The entire report and the original Digest article are both available at the Wylie Communications Inc. website,
www.wyliecom.com.
Wylie Communications offers small-town, common-sense communications solutions in multiple media that meet the needs of major national clients.
John and Faith Wylie also publish the nationally-known weekly newspaper, the Oologah Lake Leader.
JUSTICE FOR JANICE
By CHRIS EDENS and BILL SNYDER, Leader writers
Family members of murder victim Janice Douglas-Scharmacher finally heard the one word they hoped for last Friday. "Guilty."
After almost six hours of deliberations, a Rogers County District Court jury convicted Randy Scharmacher of first degree murder in the August 2006 death of his wife.
Janice's two adult daughters, Casey Wrenn and Cari Bohannon, burst into tears and began hugging each other as soon as the verdict was read.
"I feel like we got the best outcome we could get," Wrenn said. "We got the justice she deserved and he'll also get justice when he faces his creator."
The jury recommended a sentence of life with the possibility of parole. Scharmacher was also convicted on three other counts. He was found guilty of trafficking in illegal drugs, possession of a firearm during the commission of a felony and operating surveillance equipment during the commission of a felony. The jury recommended a sentence of 10 years on the drug trafficking charge, two years on the firearm charge and one year on the surveillance equipment.
Before they began their deliberations, District Judge J. Dwayne Steidley told the jurors that if convicted, Scharmacher would have to serve 85 percent of any sentence he received. He said in a life sentence a person is eligible for parole after serving 38 years.
Scharmacher remained defiant even after the verdict was read. He exchanged words with deputies and he appeared to struggle with them as they handcuffed him to escort him out of the courtroom.
"I feel like a weight has been lifted off my chest and we don't have to live scared anymore," Bohannon said.
During the trial, jurors heard testimony from sheriff's deputies, investigators and family and friends of Janice and Randy Scharmacher. Two doctors testified about treating injuries Janice said she received from Randy in incidents prior to the murder.
State Medical Examiner Dr. Ronald Distefano testified that Janice died from asphyxiation by strangulation. On April 30, a former girlfriend of Randy's testified.
Avoiding the unemotional gaze of Randy Scharmacher, Rhonda Rader told jurors how 15 years earlier she narrowly avoided the fate of Janice Douglas-Scharmacher.
"I don't know how I ended up there, but I wound up on the floor in the kitchen," Rader said. "All I remember is he had his hands on my throat and I was kicking and pushing and trying to get away. He was straddling me at that point and it was very scary."
She said she escaped by kicking Scharmacher in the groin and driving away. It was not the last time he would abuse her, nor was it the first.
Rader said the pair shared a relationship and Scharmacher's rural Oologah home from 1992-93. She said she finally left when she became afraid for her life. Rader said Scharmacher called daily for weeks until finally giving up.
Last Thursday Assistant District Attorney Ray Hassleman finished his questioning and rested his case shortly before noon by showing the jury a picture of Douglas-Scharmacher's body taken the night of the investigation.
Scharmacher's court appointed defense attorneys Tim Wantland and Ron Berry offered two witnesses in his defense. Joey Brewer and Dwayne Winn told jurors that they didn't think their friend Randy would kill his wife.
However, the cousins were not the most credible of witnesses. Both admitted that they were convicted felons and had taken meth with Randy and Janice.
Brewer didn't help matters for his friend by referring to Douglas-Scharmacher's death as a murder several times during testimony and admitting he described her to Undersheriff Barry Lamb as a "sweetheart of a girl who didn't deserve what happened."
On Friday, the jury heard closing arguments in the case. Wantland told the jurors there was reasonable doubt and Randy should be found not guilty. He said there were pieces of the puzzle that were either missing or didn't fit.
Hassleman said Randy's story about what had happened on the night of the murder didn't make sense. He said Randy claimed Janice had a gun and was threatening him.
"He's not going to run at somebody with a gun and try and strangle them," Hassleman said. "He said he killed her and that's not been contradicted."
The jurors heard testimony about methamphetamine use at the Scharmacher home. Janice had high levels of meth in her system at the time of her death.
"Just because she was involved in some of this doesn't mean she doesn't deserve justice. She didn't deserve to be murdered," Hassleman said.
Wrenn and Bohannon said they had been encouraging their mother to get out of the abusive relationship, but she continued to stay with Randy.
"All we can say is, if you're in an abusive relationship our advice is to get out and get help," Bohannon said.
Randy Scharmacher's formal sentencing is scheduled for 9:30 Monday, June 30 in Judge Steidley's courtroom.
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