August 11, 2022 – Under the terms of a non-prosecution agreement, the federal government has ordered a Springfield, MO company to pay over $1 million in forfeiture to the federal government, which acknowledges the criminal conduct of two former executives involved in a related criminal investigation.

“Company owners and executives abused their leadership positions in an unrelated charity to illegally enrich themselves and their for-profit company,” said U.S. Attorney Teresa Moore. “More than $1 million from the health care charity, primarily funded by Medicaid reimbursements, was siphoned to Pro1 through a series of illicit payments over several years. Pro1 has accepted responsibility for the criminal conduct of its former executives and cooperated with the federal investigation. Those embezzled funds will be recouped by the government under the terms of this non-prosecution agreement.”

“When federal funds are misappropriated, it harms the U.S. government and its taxpayers,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation’s St. Louis Field Office. “Pro1 executives abused their positions by causing federal funds meant for charitable purposes to become part of a scheme designed for their own financial gain. This non-prosecution agreement holds Pro1 accountable and restores the funds to the federal government.”

“This non-prosecution agreement holds Pro1 accountable for its actions in a scheme that directly benefited Pro1 and certain owners of the company in over $1 million in cost-savings and reduced expenses,” said FBI Kansas City Special Agent in Charge Charles Dayoub. “It reiterates that public funds provided to non-profit organizations and companies are not to be abused and the FBI, alongside other federal agencies, is committed to ensuring the public’s money is not used for inappropriate purposes or personal gain.”

“The diversion and theft of over $1 million of federal sourced funds, designated for employment training, behavioral healthcare and other public services by former executives of Preferred Family Healthcare and Pro1, was a gross abuse of the positions of trust they once held,” said Special Agent-in-Charge Steven Grell, Dallas Region, U.S. Department of Labor, Office of Inspector General. “They chose their own personal gain and benefit over the greater good of the public and the nonprofit organization whom they served. This agreement demonstrates Pro1’s willingness to take corrective actions regarding the fraudulent actions of its former executives.”

“Our investigation uncovered a scheme spanning several years to siphon money from a community-based health center to a for-profit company,” said Special Agent in Charge William J. Hannah of the Department of Justice Office of the Inspector General Chicago Field Office. “Today, we’re holding Pro1 accountable for this scheme and recovering over $1 million in ill-gotten gains. This non-prosecution agreement reiterates government funds are provided to these charitable organizations to benefit the public, and self-enriching schemes to steal from these government programs will not be tolerated.”

The Missouri corporation, Pro1 IAQ, Inc., design and sells indoor thermostats nationwide, and operates out of Springfield and Boulder, Colorado. Representatives of Pro1 signed the non-prosecution agreement, admitting that former executive officers engaged in a conspiracy to embezzle funds from Preferred Family Healthcare, Inc., a Springfield-based nonprofit corporation, from 2008 to November 2017. The executive’s acts of alleged criminal misconduct benefited Pro1, who were also executives of the charity, and channeled funds from Preferred Family Healthcare to financially enrich the firm.

Under the terms of the non-prosecution agreement, Pro1 must forfeit $1,057,617 to the federal government, which is the amount Pro1 gained from the conspiracy.

Read the full press release by the IRS: Springfield company pays 1 million dollars related to federal embezzlement, bribery investigation