Judge questions US Attorney's Office as charges are dropped in Loretto Hospital fraud case

CHICAGO (WLS) -- Federal prosecutors have dropped all charges against two defendants in a hospital COVID-19 fraud case after their attorneys raised allegations of prosecutorial misconduct, prompting sharp questions from the judge overseeing the case.

Before granting the government's motion to dismiss, U.S. District Judge Sharon Johnson Coleman sought explanations from prosecutors during a hearing at the Dirksen Federal Building, expressing frustration with leadership at the U.S. Attorney's Office.

The case centers on alleged fraud tied to COVID-19 testing at Loretto Hospital during the pandemic. Defendants were indicted for submitting fraudulent claims related to that testing, but attorneys for two of them raised concerns about misconduct before the grand jury that returned the indictments.

As a result, prosecutors moved to dismiss the charges against Mahmood Khan and Suhaib Chaudhry. Assistant U.S. Attorney Diane MacArthur told the court,  We decided that providing the defendants with their relief... is not an unjust result given the culpability in the case pending before you. 

The proceedings drew added attention because the assistant U.S. attorney who handled the grand jury in the Loretto Hospital case also worked on the so-called  Broadview Six  case, which was dismissed following allegations of prosecutorial misconduct. Assistant U.S. Attorney Sheri Mecklenberg handled the grand jury in that earlier case as well.

During the hearing, Judge Coleman criticized the absence of U.S. Attorney Andrew Boutros, who leads the office, saying accountability should extend beyond individual prosecutors.

SEE ALSO | Former Loretto Hospital CFO Anosh Ahmed among 3 charged in $15M embezzlement scheme

 You keep pointing the finger at Sheri Mecklenberg, this is not a one-man show. It should be the U.S. Attorney, and he's not here,  Coleman said.  It's his decision who he puts in that position... that's why he got the big job, but he's not here. 

Former federal prosecutor Ron Safer said the dismissals refle

#abc7chicago   #crimewatchchicago