Former LifeCare CEO's theft, records tampering trial resumes

ELYRIA — The trial of David Richards, former head of LifeCare Ambulance, on felony theft and tampering with records charges, resumed Monday after a nine-week hiatus. Defense attorney Brent English spent the morning and afternoon cross examining Greg Blate of Veritas Solutions Group, about his audit of LifeCare's books and investigation into allegations Richards was stealing from the company. Richards, 54, of Lorain, allegedly used company expense reports to justify improperly charging at least $27,000 in personal expenses to the private, employee-owned ambulance and medical transport company. Audits allegedly uncovered multiple purchases that Richards made and billed to LifeCare that included meals with co-workers that never happened and a membership to the Elyria Country Club. Richards has admitted to poor accounting and the commingling of personal and professional finances, but has pleaded not guilty to any crimes. Some alleged "personal" expenses flagged by LifeCare and auditors were actually business expenses, his attorney said. LifeCare has contracts for emergency medical services with multiple Lorain County communities. Richards was removed as president and CEO of LifeCare in 2021 after an Elyria Police Department investigation resulted in criminal charges. Blate testified he analyzed Richards' questioned expense reports, which other LifeCare staff "advised was an area of concern." Some of the information on Richards' expense reports and supporting documentation wasn't matching up, was non-existent or possibly inaccurate, he testified. Blate testified he never interviewed Richards and wasn't given everything he thought he needed to do a proper investigation. "I think there was a lot of documentation that was not provided," he said on the witness stand — and some of that responsibility falls on LifeCare, Blate said. He also admitted it wasn't always clear who at LifeCare made what charge, as multiple employees had access to debit and credit cards that were used by the company to buy food and supplies. English's questions seemed designed to back up claims that Richards wasn't doing anything his predecessors and fellow employees didn't also do, and that Richards was a hard-working CEO who had many responsibilities at LifeCare. As for other employees' expense reports, Blate told English at one point that he definitely didn't have all the information he wanted. "You're asking me to compare" expense reports of other employees with Richards' reports, Blate said, "and that's difficult to do." About a week of testimony was heard in late September and early October. The trial then went on pause for more than two months, from Oct. 9 until Monday, after English asked for and was granted a continuance for medical reasons. The trial is a bench trial, meaning there is no jury and Miraldi alone will decide Richards' guilt or innocence. Testimony resumes today. Contact Dave O'Brien at (440) 329-7129 or dobrien@chroniclet.com.