Former Wenatchee Health Executive Pleads Guilty to $24 Million Fraud
A former Wenatchee-based health care executive has admitted guilt to a federal wire fraud count and consented to a restitution judgment exceeding $24 million, court documents show.
Patrick Alan Bucknum entered the plea on June 24 before U.S. District Judge Thomas O. Rice in Spokane. The judge deemed the plea knowing and voluntary, directed preparation of a presentence investigation, and scheduled formal sentencing for September 23 at 10:30 a.m.
At the time of the plea, Bucknum remained released on pretrial bonds and was ordered to maintain that status pending sentencing.
He opted to forgo a grand jury indictment and instead pleaded guilty to a single count outlined in a formal Information. The charge had been previously identified in earlier reporting.
Scope of the Misconduct
Community Clinic Network (CCN), established in Wenatchee in 2010, was created to administer payment arrangements for health clinics statewide, shifting financial risk to the organization when actual expenses exceeded projections and rewarding it for cost savings. Clinic partners typically retained substantial reserve balances within CCN’s control.
Bucknum oversaw CCN’s financial operations from 2010 to 2016 while concurrently serving as chief executive of Columbia Valley Community Health. He transitioned to CCN full time in 2017, assuming the roles of chief executive, chief financial officer, and chief operations officer until his departure in 2024. Earlier reporting indicates no reported issues during his tenure at Columbia Valley.
From April 2017 onward, Bucknum began diverting funds from CCN accounts into his personal E*TRADE brokerage account. Though he lacked prior experience in securities trading, he pursued a leveraged, often conservative-leaning strategy, guided in part by digital financial content. His aim was to generate returns, replenish the depleted accounts, and retain the surplus.
Over the six-year span between 2017 and 2023, Bucknum redirected approximately $30.4 million into the brokerage account and returned about $7.36 million—resulting in a $23 million shortfall specifically tied to those transfers. When personal expenditures funded with CCN money were factored in, the total financial impact reached $24,368,427.37.
Concealment Tactics
To mask the ongoing outflows, Bucknum employed multiple accounting adjustments. He canceled outstanding checks in CCN’s ledger, edited digital bank statements, and shifted funds between CCN’s insured cash sweep savings account and its checking account. This allowed the checking account balance to appear stable—a key consideration since the organization’s leadership tended to prioritize reviewing that account over the savings counterpart.
CCN funds also supported several personal acquisitions. Among them were a 2021 Tesla Model 3 priced at $77,925.51, a Cobalt 220 boat and trailer costing $33,004.59, and a 2024 Chevrolet Silverado EV valued at $103,800.75—latter reclassified in CCN’s records as “CDW Server Upgrades.”
The indictment covers a final transaction on August 16, 2024, when Bucknum wired $1,199,210.57 interstate to purchase physical gold bullion.
Delayed Disclosure and Final Resignation
By 2019, Bucknum had concluded the mounting losses were too deep to reverse. He consulted with legal counsel but chose not to proactively disclose the situation to CCN’s leadership.
A last-ditch effort came in March 2023, when he allocated another $5 million to the brokerage account in hopes of recouping prior losses. That attempt proved unsuccessful.
He formally stepped down through legal representation on October 7, 2024, acknowledging in his resignation letter that he had embezzled and lost roughly $20 million in organization funds.
Wire fraud carries a maximum prison term of 20 years, along with up to three years of supervised release, a fine reaching $250,000, restitution, and a $100 special assessment.
Both sides accepted certain sentencing guideline calculations, including a 20-level increase reflecting a loss amount between $9.5 million and $25 million and a 2-level increase for the abuse of a position of trust.
Disagreement remains regarding other adjustments, and the court will establish the sentencing range once probation officers submit their report.
Prosecutors agreed to recommend a sentence no higher than the low end of that range as they calculate it and, provided the defendant meets the agreement's conditions, to support a reduction for acceptance of responsibility. He may argue for any lawful sentence.
Both sides will recommend three years of supervised release. The judge is not bound by any of it.
The defendant also agreed to a forfeiture money judgment of $24,368,427.37 and to surrender the Tesla, the Silverado, the boat and trailer, funds in a Chase account, and 400 American Gold Eagle coins, 70 platinum coins and 66 American Silver Eagle coins.
Assistant U.S. Attorney Jeremy J. Kelley is prosecuting. Bucknum is represented by Keith M. Woodwell and Jake Taylor.