gavel and sounding block on desk

A former Clinton County nursing home workers’ compensation officer allegedly stole more than $500,000 conspiring with a physician in a “kickback scheme” between 2002 and 2022.

Paul D. Polen, 71, of Lock Haven, was charged with one count of conspiracy to engage in theft or bribery concerning programs receiving federal funds, according to U.S. Attorney for the Middle District Gerard M. Karam.

Polen, while working at a nursing home in Lock Haven, agreed with an unnamed physician to be paid kickback payments.

The nursing home was a recipient of Medicare benefits in excess of $10,000 a year.

Under federal law, it is an offense to embezzle, steal, obtain by fraud, or misapply property work at least $5,000 from an organization receiving federal funds in excess of $10,000 per year.

The physician reported to Polen, who ran the workers’ compensation program for the nursing home employees.

Police hired the doctor for this role on the condition the doctor would have to pay half of his salary from the nursing home to Polen each month, through a company that Polen set up called Paul D. Polen, Inc. Polen made his wife the president of the company in name only.

Over the course of his employment, Polen held multiple positions, including, first, director of security, and later other roles, including director of workers’ compensation.

The nursing home was a non-profit organization under the control of Clinton County and for which the Clinton County Commissioners served as trustees.

The physician paid Polen about $1,700 and $2,500 per month for a period of 20 years.

Each month, the physician allegedly agreed to this arrangement. The doctor’s responsibilities as physician consultant included conducting physical examinations of the nursing home employees and evaluating their conditions for purposes of their workers’ compensation claims.

The doctor’s duties generally required, at most, a few hours of work per month.

The doctor allegedly provided the medical evaluation needed for Polen’s own workers’ compensation claims, which resulted in Polen working a reduced schedule for the same

compensation.

Polen and the doctor allegedly took various steps to keep the monthly kickback payments secret from the management, trustees, and other employees of the facility, including

regularly exchanging payment at the residence of the doctor, rather than at the workplace.

Polen must forfeit to the government, any property, real or personal,

involved in such offense, or any property traceable to such property,

including but not limited to: $628,450 in U.S. currency, Assistant U.S. Attorney Ravi Romel Sharma and Karam noted.

The case is presided over by Middle District Chief Judge Matthew W. Brann.