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Last week, prosecutors unveiled sweeping new racketeering charges against the founders of Grants Pass disability services provider Rever Grand. Raymond Parenteau and Jolene Sesso, prosecutors say, stole hundreds of thousands of dollars from the state Department of Human Services and laundered the proceeds. They both face the possibility of decades in prison.
The case is being closely watched. Rever Grand is the state’s largest private company providing in-home care services for people with intellectual disabilities, and the Department of Human Services has told its clients that the provider is facing credible charges of fraud and may lose access to Medicaid funding. The state pays Rever Grand more than $100 million a year.
Much is still unknown, including the particulars about the money that prosecutors allege Parenteau and Sesso stole and how they did it. The state has yet to produce any tangible evidence. (The couple’s attorney, Ron Hoevet, tells WW the charges are a legal scare tactic, trumped up and without merit. “DOJ will make our case in court,” says a state spokesperson.)
However, WW has obtained documents shedding light on one small aspect of the case that appears to play a key role in the new indictments.
Parenteau, who has fought long and hard in multiple states to obtain financial support for his severely disabled son, has a criminal past—one that he failed to acknowledge to the state, according to documents obtained by WW.
That fact has repeatedly come back to haunt him. First, he was forced to give up control of his company. Now he faces new criminal charges.
Here’s a timeline of events, according to prosecutors and state officials:
2010
Raymond Parenteau is convicted in Arizona of felony tampering with a public record after the local school district accuses him of misusing funds intended to pay for tutoring for his severely disabled child. The offense was reduced to a misdemeanor after Parenteau served his sentence, 12 months’ supervised probation.
2016
Parenteau starts Rever Grand after moving to Oregon but fails to disclose the criminal conviction in an application to enroll as a Medicaid provider, writing “N/A” instead in the relevant box, according to documents obtained by WW from the Oregon Department of Human Services.
2018
DHS discovers the prior conviction and threatens to deny Rever Grand’s request to renew its license.
2019
The two sides sign a settlement agreement. DHS agrees to allow Rever Grand to continue operating in exchange for a promise from Parenteau to step away from the company, according to DHS documents. A few months later, Sesso removes Parenteau’s name from state business filings.
2021
Parenteau signs 16 checks on behalf of Rever Grand, ranging in amounts from $700 to $1.4 million, according to DHS documents. Recipients include the city of Grants Pass, a car dealership, and a holding company controlled by Parenteau. Given that Parenteau promised to step away from the company, that appears to attract the state’s notice.
2024
Prosecutors, including members of the Oregon Department of Justice’s Medicaid Fraud Unit, file criminal complaints against Parenteau, Sesso and Rever Grand. Shortly thereafter, in August, DHS issues a temporary ban on Rever Grand accepting new clients, citing the series of checks as proof that Parenteau had violated the settlement agreement. “Respondent has failed to comply with its settlement with ODDS and there is a need for increased regulatory oversight,” writes Office of Developmental Disabilities Services director Dana Hittle. (Parenteau’s attorney tells WW that prosecutors are misinterpreting the agreement.)
LAST WEEK
Prosecutors unveil the upgraded racketeering charges, mentioning Parenteau’s 2016 application and Sesso’s 2019 business filing among the “predicate” crimes in the indictment.