Former CVCH Executive Accused of $24 Million Fraud Scheme

Federal prosecutors say a former Columbia Valley Community Health executive stole more than $24 million from a network that managed Medicaid-funded clinics, using the money for speculative stock trades and luxury purchases.

Federal Wire Fraud Charge Filed in Spokane

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Court documents say 55-year-old Patrick Alan Bucknum was charged with wire fraud May 7 in federal court in Spokane. After serving as CEO of CVCH from 2010 to 2016, he became CEO of Community Clinic Network (CCN), which is owned by four Medicaid-funded clinics, including CVCH, managing contracts and payments for 11 clinics.

Prosecutors say Bucknum controlled CCN's finances and had the authority to write checks and initiate wire transfers from the organization's accounts.

Prosecutors Allege Years-Long Embezzlement Scheme

Prosecutors say that, beginning in April 2017, Bucknum devised a scheme to use money from CCN's main checking account to fund his personal investment account. Between 2017 and 2023, Bucknum allegedly embezzled almost $30.4 million from CCN's accounts. He reportedly transferred nearly $7.4 million back into CCN accounts, resulting in a loss of over $23 million.

Bucknum reportedly met with an attorney in 2019, as he viewed the trading losses as insurmountable, but decided not to come forward then. In March 2023, Bucknum transferred $5 million in CCN funds into his investment account as a final attempt to recover the funds, but his trades were unsuccessful.

Prosecutors say Bucknum used the money for speculative trading despite having no formal investment training and relying on a high-leverage, bearish trading strategy.

Luxury Vehicles and Boat Listed in Court Documents

Prosecutors also allege Bucknum used CCN money to purchase luxury items, including an electric vehicle worth nearly $78,000, a $33,000 boat, and an electric pickup truck costing nearly $104,000.

Lastly, prosecutors say that in August 2024, Bucknum used nearly $1.2 million of CCN money to purchase gold coins that he flipped for almost $1.3 million. He allegedly used the proceeds from selling the gold to purchase 400 American Gold Eagle Coins from various years, 70 platinum coins, and 66 American Silver Eagle Coins.

Resignation Letter Included Alleged Admission

According to court documents, Bucknum admitted in an Oct. 7, 2024 resignation letter that he had embezzled and lost approximately $20 million of CCN's money.

Bucknum is a former president of the Wenatchee Stake of the Church of Jesus Christ of Latter-day Saints, a leadership position overseeing multiple congregations in the region.