Government's $45M health fraud case unravels over evidence

CHICAGO (AP) - A $45 million fraud trial has unraveled in Chicago after it emerged prosecutors didn't turn over vital grand-jury transcripts to defense lawyers.

The Chicago Tribune (http://trib.in/2o4c0Vi) reports defendants Richard and Maribel Tinimbang pleaded guilty to lesser charges Wednesday. They were initially charged with, among other things, submitting inflated Medicare bills for home health-care businesses, then spending the proceeds to fund lavish lifestyles.

But prosecutors quickly brokered plea deals in recent days. The Tinimbangs had faced years behind bars. Now, he'll likely spend just months inside and she'll likely avoid prison entirely.

Trial prosecutors said any mistakes were inadvertent. But Judge Rebecca Pallmeyer scolded them and defense lawyers pressed for sanctions. Prosecutors from the Department of Justice in Washington took the lead in the case.

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Information from: Chicago Tribune, http://www.chicagotribune.com