CHARLOTTE, N.C. — A Mecklenburg County judge decided to extend the temporary restraining order against Cardinal Innovations Healthcare Solutions's former CEO and 11 former board members until at least Jan. 18.
The state believes the organization's former leaders may be trying to hide money on their way out the door. The state used the word "secreting" in court documents. State health officials recently said they discovered documents that raised these concerns.
[State worries about former Cardinal leaders secreting money, gets restraining order]
"Nothing would make me happier than to be able to talk and I am simply and ethically constrained and I can't do it so, like I say, when it's all over, I'd love to talk," lawyer Raboteau Wilder, who is representing all 12 defendants, told Action 9 investigator Jason Stoogenke.
The state believes Cardinal broke the law by allegedly paying four former executives a combined $3.8 million in severance money.
"It's taxpayer dollars," Attorney General Josh Stein told Stoogenke. "When that money is squandered, those are dollars that can't go to providing somebody health care."
In May, the North Carolina state auditor found Cardinal spent money on meetings and Christmas parties at upscale venues, including more than $3,000 on alcohol.
[Medicaid insurance company under fire for big salaries, lavish parties]
The North Carolina Department of Health and Human Services released a report last month noting that, in 2016, compensation for Cardinal's CEO was more than $600,000, an amount the report said is "three times higher than the maximum allowable for the position."
Also last month, Action 9 found Cardinal breached the privacy of a Charlotte teenager. Cardinal accidentally sent her personal information to a stranger.
[NC's biggest Medicaid MCO mails teen's health info to wrong parent]
A few weeks later, the state assumed leadership of the organization for the time being, banned outgoing leaders from the property and disbanded the board.
[North Carolina health officials taking over mental health agency]
A selection committee plans to meet Thursday to create a new board.
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