FCLC Member Jason Bologna Obtains Acquittal on All Charges for CEO of Multiple Pennsylvania Medical Practices

FCLC member Jason Bologna obtained an acquittal on all charges for his client, Christopher Phifer, the former CEO of multiple Pennsylvania medical practices. The case involved allegations that Phifer stole approximately $250,000 of corporate funds over a multiyear period. On December 26, 2018, Phifer was fired by a letter delivered to his front door. Phifer brought a civil suit against the doctors/owners and they, in turn, sued him.

The local prosecutor’s office began investigating the case in 2019.  On October 30,2023, after a new prosecutor was assigned to the case, charges were brought. These charges stayed the civil case (notably, Phifer had never asserted the 5th and answered every question asked of him in a 300+ page deposition). Bologna noted “the trial judge in the criminal matter ordered the prosecution to give us additional discovery which was essential to winning this case. It indicated the criminal investigation and charges were used by the doctors as leverage in their civil matter.”

The government alleged criminal conduct by Phifer from 2010 through November 2018, but at the time of charging, 107 of the 108 months fell outside the statute of limitations. The only two payments that fell within the statute were a $500 AMEX payment with company funds and a $5,000 check made payable to a law firm for legal services.

Bologna noted “the government had no evidence what the $500 AMEX payment was for; it was the minimum payment due that month. The government had no proof that my client made this payment and no proof what computer or phone was used to log in and transfer the funds.” As to the check, he explained “the invoice showed the law firm was consulted about the possible addition of a new doctor to the existing medical practice. The owners attended a four-hour meeting with the lawyer, and my client, about this business opportunity. And those same doctors accused my client of theft by using company funds to pay for these legal services.”

Due to the statute of limitation issues, Bologna asked the judge to give two special interrogatories. He explained “the judge agreed to ask the jury – ‘Do you find the $500 AMEX payment or the $5,000 check violated any of the five felonies charged by the government? If your answer to those questions is no, please notify the deputy immediately.’ This was essential because it simplified the case for the jury, and it prevented my client from being convicted for alleged conduct that was entirely outside the statute of limitations.” The jury quickly answered both questions “no,” and the judge dismissed the remainder of the case.

Bologna is a Shareholder at Buchanan, Ingersoll, and Rooney. He is a former federal and state prosecutor.