CLEVELAND — Nearly two years after Dr. Akram Boutros was terminated as MetroHealth CEO on accusations that he authorized $1.9 million in bonus payments to himself, the state auditor released its report Tuesday saying his actions were "not criminal."
A section of the auditor's report -- titled "employment contract" -- expands upon this determination with the following text:
"Dr. Boutros advised that he interpreted his contract to entitle him to receive all benefits received by senior executives, including the SPBVC (supplemental performance based variable compensation) benefits. These were not contractual rights but were benefits which he believed he was entitled to by virtue of the contract language without specifically advising the Board. MetroHealth has acknowledged that Dr. Boutros had the authority to provide these benefits to the senior executives. MetroHealth disputes that the contract language cited by Dr. Boutros covered the SPBVC benefits.
"However, in that contract law provides that any ambiguities in contract language is interpreted in favor of the party which did not draft the contract, we conclude that Dr. Boutros was not unreasonable in his interpretation of the contract language. As previously noted, the purpose of the special audit was to assist the Cuyahoga County Prosecutor’s Office in determining if criminal acts had been committed related to the bonus payments. Therefore, we do not need to determine whether the Board or Boutros is correct on the interpretation of this part of the contract. Instead, we need to determine if Boutros’ interpretation was not unreasonable.
"If his interpretation was not unreasonable then, even if he was incorrect, the State would be unable to prove, beyond a reasonable doubt, that Dr. Boutros obtained these funds from MetroHealth either “without the consent of the owner” or “by deception.” This means that we do not need to reach a conclusion as to which interpretation of this clause in the contract is legally correct. The manner in which the contract was drafted creates the ambiguity which makes Boutros’ interpretation, and thus his actions, not unreasonable and, therefore, not criminal."
You can read the full auditor’s report below:
REACTION FROM DR. BOUTROS
Dr. Boutros released the following statement through his attorneys on Tuesday morning:
“I am gratified that the Auditor of State’s comprehensive investigation has confirmed the truth about my compensation and proves that I have done nothing wrong. Despite how my tenure ended, my 10 years at MetroHealth were the most gratifying of my career. I love the staff and patients and am honored to have led a team that significantly improved healthcare in Cuyahoga County, and shepherded MetroHealth to become the most socially responsible health system in Ohio.”
Dr. Boutros spoke exclusively with 3News' Russ Mitchell following the auditor's report on Tuesday afternoon. You can watch that interview below.
REACTION FROM HIS ATTORNEYS
Attorneys Kevin Spellacy and James Wooley of Hillow & Spellacy, who represented Dr. Boutros, released the following statement to 3News on Tuesday morning:
"The Auditor of State, the agency with the statutory authority to determine whether there has been a wrongful expenditure of public funds, conducted a thorough two-year investigation and did not find misappropriation or concealment by Dr. Boutros with respect to his compensation."
Wooley also expanded with the following reaction:
“Two years ago, The MetroHealth Board released a so-called 'report'—produced by a private firm with no statutory authority, based on an incomplete three-week review—that accused Dr. Boutros of concealment in violation of criminal laws. The Board publicly accused Dr. Boutros of fraud. That was just dead wrong. And this was tragic. The MetroHealth Board took a compensation dispute, mishandled it, and spun it into a public scandal that destroyed Dr. Boutros’ reputation, livelihood, and even his health. This is a man who led MetroHealth to remarkable success, a good man who deserved far better.”
REACTION FROM THE METROHEALTH BOARD OF TRUSTEES
"While the Auditor's report does not find sufficient evidence to support a criminal referral, the report is clear on several key facts, including (1) "…Dr. Boutros did not share the development and management of the (supplemental performance based variable compensation) program directly with the Board…", (2) the Auditor was "unable to identify any supporting documentation for overt authorization by the Board for Dr. Boutros' participation in the SPBVC", and (3) when confronted with the payment of the unauthorized bonuses, “Dr. Boutros repaid the SPBVC bonuses, including interest, at a total of $2 .1 million.
"These facts make it clear that the Board acted properly in terminating Dr. Boutros for cause and recouping millions of dollars in unauthorized bonus payments."