Edgeville Buzz

Edgewater Hospital’s Former CEO Peter Rogan Finally Faces Charges, Pleads Not Guilty

The Old Edgewater Hospital Complex

The former owner and CEO of the old Edgewater Hospital 69-year-old Peter Rogan finally returned to Chicago from Vancouver, Canada to face the charges brought against him by federal prosecutors. He will answer to perjury and obstruction of justice charges about the December, 2001 closing of the hospital due to a large scale health care fraud scheme.

According to prosecutors the hospital accepted a massive amount in kickbacks for patient referrals and medically unnecessary hospital admissions, tests and services. Since the closure, the medical complex has sat empty and become a decaying icon of greed.

Rogan fled to Canada in the Fall of 2006 after the FBI searched his vacant surgery center in Merriville, Indiana. Though mostly cleaned out, they did find an invoice to a company Rogan had hired to destroy 47 boxes of key financial records.

Last week, Rogan allowed US Marshals to bring him back onto American soil after fighting extradition for nearly four years. He entered the courtroom of U.S. District Judge Samuel Der-Yeghiayan on Friday and pleaded not guilty to the charges. The judge had him remain in custody until a detention hearing scheduled for this Wednesday.

Though not criminally charged in 2002, federal prosecutors did file a civil lawsuit against Rogan claiming he was in fact the man responsible for the multi-million dollar scheme. In 2006 U.S. District Judge John Darrah said Rogan had lied under oath and obstructed justice by destroying crucial evidence to the case. The Judge entered a $64.2 million judgement against him. In 2007, the hospital’s chief creditor Dexia Credit Local, was awarded more than $124 million.

Then in 2011, an indictment claimed that both Rogan and his then lawyer lied about a trust account in the Bahamas from 2002-2010. They both allegedly lied about having no control over the Rogan trust account when in fact, from 2002-2007, nearly $11 million was distributed to Rogan and his wife. According to prosecutors, those funds paid rogan’s personal expenses including maintenance on his 48-foot boat named Fringe Benefit.

See the full Tribune article here.

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