AP NEWS

Mental health provider reaches deal over ex-CEO misspending

May 15, 2019

BATTLE CREEK, Mich. (AP) — A Michigan community mental health provider has agreed to a settlement over more than $19 million in misspending under its former CEO.

The Battle Creek Enquirer reports Summit Pointe Community Mental Health and the Department of Health and Human Services entered into an agreement that will allow Summit Pointe to erase a $17.9 million fine by giving the state pension plan assets and money from the sale of low-income housing properties.

The state examined records from the seven years Erv Brinker spent as Summit Pointe’s CEO in Battle Creek. Brinker was fired in 2015. He pleaded guilty to embezzlement and Medicaid fraud in 2016. An audit found Brinker misspent on lavish benefits, parties and side projects.

Summit Pointe says the settlement won’t affect its services and it’s stronger than before.

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Information from: Battle Creek Enquirer, http://www.battlecreekenquirer.com