Owners of Iowa counseling service accused of fraud, accepting bribes

The Associated Press

DES MOINES – The owners of a counseling service have been called before the Iowa Board of Social Work Examiners for allegedly falsifying records and violating rules for social workers.

David Benedix and Gene A. Hutchinson were co-owners and operators of Phoenix Family Services, a Greenfield counseling agency that has been linked to bribes and fraudulent activity.

Benedix and Hutchinson – whose business was contracted by the Iowa Department of Human Services – were ordered to attend hearings Aug. 13 where the board will consider disciplinary action.

They are accused of falsifying client records, engaging in unethical conduct and accepting fees by fraud. Benedix and Hutchinson have been accused of similar activity since 2002.

In 2004, Benedix was served with a state audit that showed Phoenix falsified client records, lacked documentation and repeatedly was overpaid by the Iowa Department of Human Services. Benedix settled the matter in February 2005 by agreeing to a lifetime suspension from providing counseling in an owner, managerial or supervisory capacity.

Benedix was also accused of defrauding the federal government in 2002, and in 2004 agreed to return $19,615.

Hutchinson was convicted of bribery of a public official on June 26, 2006. He pleaded guilty to offering payment through Phoenix to a juvenile court officer in the Fifth Judicial District of Iowa.

Rockhold admitted he accepted payments from Phoenix in exchange for referrals to their agency. Phoenix paid Rockhold $300 for each referral, according to the Department of Inspections and Appeals.

Rockhold pleaded guilty to accepting bribes, unlawful dissemination of criminal history data, and non-felonius misconduct in office. The charges were filed after investigators uncovered Rockhold’s relationship with Phoenix Family Services.