Two women — embroiled for almost two years in legal issues involving health-care companies that they owned — have been indicted on more than 20 counts of theft by failure to make required disposition of property.
The indictment, returned last week in Franklin Circuit Court, alleges that on numerous occasions in 2012 and 2013 defendants Lu Anne Wallace and Ann S. Giles obtained property in the form of withholding tax money, then "intentionally dealt with the property as their own and failed to make required payment or disposition."
The charges involve acts Giles and Wallace allegedly committed between July 2012 and August 2013 while doing business as Resources in Healthcare Management LLC, one of several companies they operated.
Other companies, not mentioned in the indictment, include Paragon Family Practice, Horizon Healthcare LLC and Madison Primary Care LLC.
The money in question was withheld from employees' pay, but never deposited where it was supposed to go, Franklin County Commonwealth's Attorney Larry Cleveland said Tuesday.
The total amount involved is "in excess" of $422,000, Cleveland said.
The indictment charges Wallace and Giles with 24 counts, each involving more than $10,000. An additional count involves more than $500.
Three of their employees filed a class-action suit in 2013 in U.S. District Court charging that Giles and Wallace's companies failed to pay workers' health insurance premiums, causing their coverage to lapse.
Louisville-based PBI bank also sued Wallace, Giles and several of their companies, seeking more than $900,000 allegedly owed to the bank.