GloucesterTimes.com, Gloucester, MA

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June 12, 2013

Manchester man jailed on Conn. business charges

MANCHESTER — An Old Wenham Way man was arrested on a warrant Tuesday for failing to pay the wages of his employees for his Connecticut-based dental business.

Manchester Police arrested John F. Gallagher, 59, at his mansion Tuesday at 7:30 a.m. on a warrant from the Connecticut Department of Labor.

Manchester assessing records show he purchased the mansion in 2001, it has 27 rooms in all, the combined value of the house and land is more than $2.5 million.

According to Connecticut Secretary of State records, Gallagher is the president, director and treasurer of Dental Care of Connecticut Inc. out of Groton, as registered with the state in December of 2011.

Gallagher owes 72 employees about $90,000 according to Nancy Steffens, the Communications Director of the Connecticut Department of Labor.

The warrant for his arrest was issued on May 21, though the warrant was unclear during what time frame Gallagher allegedly failed to pay his employees.

“Our attempts to get him pay back the wages were unsuccessful,” she said.

He was transported Tuesday to Salem District Court, where he was arraigned on a fugitive from justice charge, according to Carrie Kimball Monahan, speaking for Essex County District Attorney Jonathan Blodgett. Gallagher, whose 27-room home and its surrounding property is valued at $2.5 million, was being held without bail Tuesday night in Middleton jail.

Connecticut officials have 10 days to retrieve him and bring him to that state, Monahan said. If Gallagher is not brought back by Connecticut officials, a status hearing will determine the outcome of the case, Monahan said.

The case is not Gallagher’s first brush with the law.

The state of Connecticut reached a $9.9 million settlement with a number of defendants in a Medicaid billing scam early last week, and Gallagher was one of the defendants involved in that case as well, records show. He was among 28 individuals, dental practices and corporations named in the state’s civil lawsuit last May according to the state Attorney General’s office. The investigation involved state and federal authorities.

According to a statement from the AG’s office, the Medicaid fraud case is described as an “elaborate and illegal scheme” that ended with more than $24 million in fraudulent Medicaid clams throughout two years. Anusavice plead guilty to the charges last week.

James Niedzinski can be reached at 978-283-7000, x 3455 or at jniedzinski@gloucestertimes.com.

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