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Ex-rehab center CEO pleads guilty to theft

The former CEO of a Baltimore substance rehab center, Baltimore Behavioral Health, pleaded guilty Tuesday to failing to pay more than $2.4 million in payroll taxes and stealing more than $53,000 from the center’s employee benefit plan, the U.S. Attorney’s Office for Maryland announced. It said William Kristen Hathaway, 52, of Ellicott City, “paid lucrative salaries to his family members while cheating the IRS and the employee pension plan.” According to the plea agreement, Hathaway was the CEO for BBH, a government-funded, tax-exempt organization that treated people with drug addictions and mental disorders. He managed the accounts and oversaw the employee payroll process, the agreement states. It says the board of directors was primarily comprised of Hathaway’s relatives, including his wife, his sister and his mother. Hathaway faces a maximum sentence of five years in prison for each of the two counts; sentencing is set for June 18.