Federal prosecutors have asked a judge to turn a Powell drug treatment center’s facilities over to the government for implication in insurance fraud, according to court documents.
The facility — Northwest Wyoming Treatment Center — was founded by a Powell psychologist, Gibson Condie, who in 2018 pleaded guilty to health care fraud. The same year, a federal judge sentenced him to three years in prison.
A spokesman for the Wyoming branch of the U.S. Attorney’s Office said by phone Friday morning he was unsure if the civil action was related to the criminal case against Condie. He said he would confer with the prosecutor working the civil case but had not provided an answer by mid-afternoon Friday.
The forfeiture action, filed March 27, states that prosecutors are seeking the forfeiture of two bank accounts, four physical properties, a utility trailer and an all-terrain vehicle. The properties and vehicles are registered to the treatment center, prosecutors say. The two bank accounts are registered in the name of the treatment center along with the director and president, respectively, of the center.
The civil action also names the Big Horn Federal Savings Bank, which prosecutors say may hold a lien on a property. A Friday call to the bank’s attorney was not immediately returned.
In 2016, about a year before prosecutors indicted Condie on more than 200 counts of health care fraud, the treatment center filed paperwork with the Wyoming Secretary of State’s Office removing Condie as its registered agent. Registered agents are not necessarily people in positions of authority. Wyoming law requires they keep certain information about the company’s structure and be available for service of legal documents.
The 2017 indictment did not name NWTC or otherwise implicate it in the government’s criminal allegations.
The treatment center does not have a website of its own and phone numbers listed in financial paperwork were not operational Friday. According to IRS tax forms, the company provided inpatient substance use treatment for children and “(provided) for the protection and education of wards of the court and neglected children.”
When Condie founded the facility in 2000, it was known as the Vernon Clegg Condie Youth Homes. The nonprofit assumed its current name in 2006.
A Wyoming Department of Health spokeswoman said Friday she did not know if the state had contracted with the facility. She said the facility had been a Wyoming Medicaid provider but wasn’t sure why it lost that status in 2017.
A Department of Family Services spokeswoman on Friday afternoon could not immediately say whether or how the agency had contracted with the treatment facility. The Department of Education by Friday evening was likewise unable to say if it had worked with NWTC.
Tax forms indicate NWTC was profitable in 2014 and 2015 but posted losses of hundreds of thousands of dollars the next two years. The documents indicate the nonprofit took in more than $2.3 million in 2015, but revenue plummeted to less than $400,000 in each of the next two years.
Financial records from 2018 were not available as of Friday.
Editor's note: An earlier version of this article included an imprecise reference to the United States government.
Follow crime reporter Shane Sanderson on Twitter @shanersanderson
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