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Federal Investigation Into Possible Foreign Corrupt Activities at Steward Health Care


Healthcare company Steward is facing a foreign corruption probe by the DOJ, with allegations of bribery and financial misconduct in Malta. Steward is reported to be cooperating with the investigation, but specific details have not been disclosed. The founders and executives of Steward, including Ralph de la Torre and Armin Ernst, have been accused of participating in a bribery scheme in Malta, where they attempted to expand their brand overseas.

The investigation in Malta has led to recommendations for charges of money laundering, criminal association, and corruption of public officials against Ernst and de la Torre. The US federal government has been involved in the investigation, with Maltese authorities seeking assistance to unlock electronic devices of former Maltese prime minister Joseph Muscat.

Steward has been under scrutiny by federal lawmakers in the US for its financial problems, including reductions in services and unpaid bills. The company filed for bankruptcy in May and is currently undergoing a court-supervised auction process to sell its hospitals. In addition to the foreign corruption probe, Steward has faced other legal challenges, including allegations of false claims to Medicare and antitrust violations.

Despite the investigations and financial challenges, Steward executives were found to have spent millions on private intelligence firms to surveil and gather information on critics of the company. The company’s actions have drawn criticism from federal lawmakers and have raised concerns about its impact on the healthcare system.

The ongoing investigations add further complexity to Steward’s situation as it tries to raise cash and find new operators for its hospitals. The company’s bid deadline for its Massachusetts hospitals has been pushed back, and potential buyers, like Optum, have walked away from deals. Steward’s struggles have also had implications for patient care, with an exodus of patients overwhelming other emergency departments in the region.

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