$24M embezzled from WA clinics. CEO bought a Tesla, boat and truck

The former leader of a company that manages health care payment contracts for Washington clinics, including in the Tri-Cities, has pleaded guilty to embezzling more than $24 million.

Patrick A. Bucknum, 55, was the chief executive officer of Community Clinic Network in Wenatchee.

Clinics served by the network include the Yakima Valley Farm Workers Clinic with Mirimar Health Centers in Pasco and Kennewick and Valley Vista Medical group in Prosser and also Columbia Basin Health Association with clinics in Pasco, Connell and Othello, according to the network’s website.

Bucknum took money from Community Clinic Network’s business bank account with the initial intent of investing it and then returning the money to the network as he kept the investment earnings for himself, according to the U.S. Attorney Office for the Eastern District of Washington.

Starting in 2017, Bucknum began to move money from network accounts to his personal investment account, and then manipulated financial records to hide the embezzlement, according to a court document.

He invested the money in stocks, options and exchange-traded funds, relying on aggressive, highly leveraged strategies that he saw on social media, according to a court documents.

But he made poor trades and his losses quickly mounted, which led him to embezzle more funds to try to recover the losses, according to court documents.

From 2017 to 2023, he embezzled almost $30.4 million to trade and transferred about $7.5 million back into the network’s accounts for a loss of about $23 million.

He also embezzled funds for his personal use, buying a Tesla, a boat and trailer, and a Chevrolet Silverado pickup, according to a court document.

In addition, he embezzled nearly $1.2 million to purchase gold coins, making a slight profit by selling them six months later.

In all, his transfers from the network, offset by what he paid back, and personal spending with embezzled money cost the Community Clinic Network nearly $24.4 million

Bucknum voluntarily resigned from Community Clinic Network in October 2024 and admitted the embezzlement, estimating the loss then at about $20 million, according to court documents.

Among tactics he used to hide the embezzlement from the network’s board was transferring money from what served as the network’s savings account into the network’s checking account. He knew that the agency’s board was more likely to check the balance in the checking account than the savings account, according to a court document.

The Community Clinic Network was formed in 2010 to improve quality and cost savings using a risk pool, and Bucknum had relatively unfettered access to the tens of millions of dollars stored with the network, according to a court document.

Some clinics took distributions of shared savings from the network, but others left large balances with the network to use as a rainy day fund. The network invested the funds on behalf of the clinics.

Bucknum is scheduled to be sentenced Sept. 23 in the Spokane U.S. Courthouse.