WILLIAMSPORT — A former workers’ compensation director at a Clinton County nursing home has been charged with conspiring to steal more than $500,000 through a kickback scheme that involved a physician.

Paul D. Polen, 71, of Lock Haven, was charged with conspiracy to engage in theft concerning programs receiving federal funds was filed Wednesday in U.S. Middle District Court.

Also filed was an agreement signed by Polen to plead guilty and forfeit $628,450. There is no explanation for that amount given the stated loss being $528,450.

Polen was employed at the then county-owned Susque-View Home Nursing and Rehabilitation Center from the early 1990s until 2022, holding various positions. His initial position was director of security.

It was not until after the county commissioners sold the facility in 2022 to Allaire Health Services of New Jersey for $12.5 million were the financial irregularities discovered and reported to authorities, Commissioner Jeff Snyder said.

Susque-View, which received annual benefits under Medicare, maintained a self-funded workers’ compensation plan meaning it assumed financial responsibility to pay its employees’ claims.

Polen ran the workers’ compensation program on a day-to-day basis. His duties included completing and submitting paperwork needed for employees to receive payments.

The following is the description of the conspiracy taken from the criminal information filed:

In 2002 Polen approached an emergency medicine doctor in the Lock Haven area about a physician consulting position that was becoming vacant.

Conditions of employment included the doctor, who is not identified, would report to and pay half his compensation to Polen each month as a kickback.

The physician’s responsibilities included conducting physical examinations of employees and evaluating their conditions for workers’ compensation claims. The duties required at most a few hours of work a month.

He also provided the medical evaluation for Polen’s own workers’ compensation claims that resulted in him working fewer hours but for the same pay.

The physician made monthly kickback payments by check to Paul D. Polen Inc., a company he established and of which he made his wife president in name only.

The size of the payments grew along with the physician’s compensation. The initial kickback payment was approximately $1,700 and it later grew to be about $2,500.

Polen and the doctor are accused of taking various steps to keep the payments secret from management, the trustees who were the county commissioners and other employees. That included making them at the physician’s residence.

The doctor, who has not been charged, left his position before Susque-View was sold, Snyder said.

The plea agreement requires Polen to cooperate with the Internal Revenue Service and file all delinquent and amended tax returns before he is sentenced.

The date of his first court appearance has not been set.