Spotlight on Tenet's Former CEO

While Tenet (THC Quote) has paid a steep price for its past misconduct, the company's former leader -- who made more than $110 million selling the company's once-highflying stock -- still awaits justice.

Tenet this week inked the last in a series of government settlements, this one with the Securities and Exchange Commission, spawned by its past billing practices. Two former Tenet executives settled securities charges as well, and another two remain under investigation.

But former CEO Jeffrey Barbakow wasn't even mentioned in the recent SEC settlement, leading some observers to speculate that the government could be preparing a court case against him.

"His name is conspicuously absent," notes Jeff Villwock, managing partner of Genesis Capital and a regular trader -- who takes both long and short positions -- in Tenet's stock. "The only explanation that I can think of is that there is some kind of criminal probe going on."

The SEC is limited to pursuing civil cases, Villwock says, so he hypothesizes that the agency could have shifted Barbakow's case to the Justice Department for a criminal investigation. He says no other explanation makes any sense.

The SEC didn't return a phone call from TheStreet.com, and Barbakow's attorney declined to comment for this story.

The SEC's own complaint against four other former Tenet execs suggests that Barbakow could be in trouble. Back in February 2002, the SEC claims, four former Tenet executives -- all targets of the SEC probe -- met with Barbakow for a discussion focused on the company's lucrative "outlier" payments from Medicare. The following month, the SEC says, former operating chief Dennis Mackey then presented details about the company's outlier payments "at a dinner attended by most of Tenet's board members and various senior officers" of the company.