Feds seek to speed UnitedHealth probe

Feds seek to speed UnitedHealth probe

	Published : Mon, 30 Apr 2007 22:07 By : Agencies Print this Story

MINNEAPOLIS (AP) - Offering the first glimpse into a yearlong federal probe of UnitedHealth's stock options scandal, prosecutors said they are trying to move in an 'expeditious manner,' according to a court filing in a shareholder lawsuit.

UnitedHealth Group Inc. acknowledged in May 2006 that it had been subpoenaed by the U.S. attorney's office in the Southern District of New York, but the insurer has said little about the federal probe since then. Prosecutors haven't commented.

Prosecutors in New York are 'making every effort to investigate the matter in a(n) expeditious manner,' the government said in the filing.

Shareholders who sued over the stock options scandal are asking the company to hand over notes and memos from its internal investigation, including everything UnitedHealth has given to the Securities and Exchange Commission in its separate probe.

The documents sought by the shareholders 'include memoranda and notes of interviews of individuals who are, or likely will be, Government witnesses in the current criminal investigation, and potentially in future criminal proceedings,' federal prosecutors wrote in their motion.

Assistant U.S. Attorney D. Gerald Wilhelm argued in court Monday that handing over those documents would have the effect of revealing the federal case before anyone has been charged. He asked Judge Franklin L. Noel to block the disclosures at least until a May 21 hearing. Wilhelm declined to comment after the hearing.

However, federal prosecutors also suggested that the judge set a date six months from now for a private update on whether an additional delay is necessary.

UnitedHealth has also sought to block the hand-over, so the request by federal prosecutors could become moot.

The company has acknowledged that some stock options granted to executives were probably backdated to dates when its stock price was more favorable for the recipient. The biggest recipient -- then-chairman and CEO William McGuire -- was forced out last year over the scandal.