Correction: This story originally stated that Summit Pointe serves the counties of Kalamazoo, Cass and St. Joseph. The Attorney General's office on Wednesday clarified that these counties are not covered by Summit Pointe.

CALHOUN COUNTY, MI -- A Calhoun County health official is facing criminal charges after he allegedly sent more than $500,000 to a psychic palm reader for "health consulting" services.

Ervin Brinker, 68, of Delton, has been charged with two counts of Medicaid fraud conspiracy and one count of embezzlement by a public officer, Attorney General Bill Schuette announced in a Wednesday press release.

Brinker was the CEO of Summit Pointe in Battle Creek until he was terminated in February. Summit Pointe is a community mental health authority, established by the Calhoun County Board of Commissioners.

Summit Pointe records show a total of $510,000 was dispersed in two separate contracts to pay a "health care consultant" in Key West, Fla. between May 2011 and November 2012, according to the news release.

An investigation by the Attorney General's office revealed that Brinker allegedly sent the money to a Key West psychic palm reader and her husband. Brinker signed the fraudulent contracts without consulting other employees, the AG's office alleges.

The state of Michigan contracts with Summit Pointe to provide mental and behavioral health services to Medicaid consumers in the counties of Barry, Berrien, Branch, Calhoun, and Van Buren.

Brinker was arraigned Wednesday before Judge Richard Ball in Lansings' 54B District Court. He was released on a $25,000 personal recognizance bond. He is next due in court on Aug. 12.

Summit Pointe issued a statement Wednesday in response to the charges.

"When our Board was informed of employee concerns about irregularities in contracting and expenditures, we engaged Fraser Trebilcock as independent counsel to conduct a careful, external investigation. What we found through that process increasingly disappointed and alarmed us as a Board, and among a series of other necessary actions, we contacted the appropriate authorities. We are very appreciative of the efforts of the Attorney General...and we are relieved that this difficult chapter is finally over," said Trae Allman, Summit Pointe Board Chair.