Case Western Reserve University School of Law hosted alumnus Thad Bereday, former General Counsel of WellCare Health Plans, for a discussion on corporate fraud and the criminal justice system.
Bereday recounted his career from corporate law to WellCare, a Medicaid managed care provider that grew to $3 billion in revenue by 2007. That same year, 200 federal agents raided its Tampa headquarters, launching one of the largest healthcare fraud investigations in U.S. history.
The case centered on Florida’s “80/20 law,” requiring 80% of mental health funds to be spent on patient care. Prosecutors argued WellCare’s use of an affiliated subsidiary to comply was fraudulent. A whistleblower recorded more than 800 hours of conversations, leading to $35 million in alleged losses.
Bereday and several executives were indicted in 2011. Four were convicted; Bereday’s trial was delayed by a leukemia diagnosis. He later pled guilty to one count of making a false statement and served six months in federal prison plus a year of home confinement.
In 2021, he received a presidential pardon, with the case cited as an example of over-criminalization. Bereday now advocates for criminal justice reform, highlighting how the system disproportionately impacts poor communities.
