Warwick women charged with Blue Cross fraud
PROVIDENCE – Two Warwick women, Lucille Reilly, 42, and Luz Rowley, 51, have been indicted by a U.S Grand Jury and charged with conspiracy and mail fraud for allegedly fraudulent health care reimbursement claims from Blue Cross and Blue Shield of Rhode Island. According to U.S Attorney Margaret E. Curran, the four-count indictment charges Reilly and Rowley with conspiring to defraud Blue Cross and Blue Shield by submitting claims for reimbursement for nonexistent medical services. Reilly and Rowley reportedly were attendants at institutions for Rhode Island and used an unidentified Blue Cross employee who is a relative of Reilly’s to obtain immediate payment of their claims. The indictment claims the defendants collected $55,808 on three fraudulent claims. Reilly and Rowley are to be arraigned on the charges in U.S. District Court at an unspecified date.
$1.3 million awarded to 56 RI firms
PROVIDENCE – Under the terms of Round IX of its Competitiveness Improvement Program, the Human Resource Investment Council has awarded $1.3 million to 56 Rhode Island companies. The grants, up to $25,000 for individual companies or up to $50,000 for consortia of three or more firms must be matched by the recipients, dollar for dollar. The companies will use the money to develop high performance work organizations by upgrading the skills of their existing work forces. Categories include technology applications, employee skills training, marketing development, team building, English as a second language, implementing total quality management, and preparing for ISO 9000 certification.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
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Playskool recalls 273,000 cups
PAWTUCKET – Playskool division of Hasbro, Inc., announced that it was recalling 273,000 spillproof children’s cups because of a defective spout. The flexible spout tends to tear, the company said, and there is risk that a piece could break off and choke a child. The company said it had no reports of injuries from the cup although it said it had received 115 reports of tearing, in six of which children were reported to have had pieces of the cups in their mouths. The cups are designed for children from six months and up, the company reported. Anyone interested in obtaining a replacement lid may call Hasbro at 888-690-6166 or through the company’s website at www.hasbro.com.
Log On America to buy larger Internet access
PROVIDENCE — As promised, Log On America is growing. The Rhode Island internet access provider has agreed to buy an Internet access company in Maine that is about nine times its own size. CyberTours Inc., is a Kennebunk-based company that provides Internet access in both Maine and New Hampshire. It is Log On America’s first acquisition since it was publicly traded in April. The company raised $25.3 million in its initial public offering, and vowed to use the money toward acquisitions.
The acquisition is part of the company’s strategy to quickly develop high-speed Internet service and telephone service. Log On America is trying to move into the telephone business and said it will begin voice service in Rhode Island. CyberTour is much larger than Log On America in terms of annual sales and employees. The purchase would add about $7 million to its annual revenues — nine times more than last year’s revenue of $759,000.
CVS Soma.com unit in Yahoo pact
SEATTLE — Soma.com, the Internet pharmacy services unit of CVS Corp., said it reached an agreement to become a merchant on Internet media company Yahoo! Inc.’s Yahoo Health Internet site. Financial terms of the deal were not immediately disclosed. Soma.com provides access to registered pharmacists through the Internet or a toll-free telephone call, and next-day delivery of prescription and over-the-counter medications as well as health and beauty products.
Textron subsidiary buys finance company
PROVIDENCE –Textron Financial Corporation (TFC), a subsidiary of Textron Inc., has acquired RFC Capital Corporation (RFC). RFC is a specialty finance company serving commercial customers in the telecommunications industry. With receivables of $70 million, RFC will become a division within TFC’s Revolving Credit Group. Terms of the transaction were not disclosed. TFC has $5 billion in managed receivables and a twenty-year history of record earnings. It provides term financing for Aircraft, Equipment and Golf (including the financing of Textron products); revolving credit arrangements; and specialty finance. Other services include syndications, asset management, portfolio servicing and insurance brokerage. More information about TFC and RFC is available at www.tfc.textron.com and www.rfccapital.com. A subsidiary of Textron Inc., TFC represents approximately 4% of Textron’s total revenues.
GTECH consortium chosen
WEST GREENWICH– GTECH announced that the Uthingo consortium, in which GTECH is a 10 percent equity partner, was chosen as the preferred bidder for the South Africa National Lottery. In addition to the equity stake, GTECH will provide technology for the Lottery. The seven-year license award is subject to successful negotiations regarding the terms of the license.
