Editor’s note — as you may know, we normally confine ourselves to investigating dental office embezzlement. However, we do provide reporting on significant embezzlements in medical offices because the methodologies employed have considerable commonality.
The former executive director of University of Louisville’s Department of Family & Geriatric Medicine was indicted Wednesday, accused of stealing $2.8 million in patient payments and other funds and failing to report $2.4 million in income.
A federal grand jury in Louisville also charged Perry Chadwick Vaughn, 36, with money laundering for allegedly trying to disguise the thefts by using the money to buy or lease nine luxury vehicles and pay for real estate, luxury vacations and a $9,000 necklace.
Vaughn, who lives in Sellersburg, Ind., was arraigned on the seven-count indictment charging him with theft and bribery in programs that receive federal funds, money laundering, mail fraud, and filing false federal income tax returns.
He had been accused of some of the offenses in a civil complaint filed last September.
The Courier-Journal reported that Vaughn wore expensive clothes, flew his family to the Caribbean and drove a fleet of luxury cars, including two Mercedes-Benzes, a Range Rover, a Corvette and an Infiniti, but that it wasn’t until October 2012 that a co-worker emailed U of L auditors questioning how Vaughn could be living so luxuriously on a $105,000 annual salary as administrator of the family medicine department and manager of affiliated private practice groups.
U.S. Attorney David J. Hale said Vaughn, in a scheme that lasted nearly six years, allegedly diverted checks and patient payments, then withdrew $2,809,489 for his personal use.
Vaughn pleaded not guilty and a trial date has been set for June 3. If convicted, he faces up to 55 years in prison and a maximum fine of $1.25 million. Magistrate Judge Dave Whalin released Vaughn on a $25,000 unsecured bond. His lawyer, Rob Eggert, could not be reached for comment.
As the department’s top administrator, Vaughn was responsible for all business and accounting functions, including payroll, budgeting, tax reporting, accounts receivable, accounts payable and bank reconciliations.
The grand jury charged that Vaughn diverted money from the department to the practice groups, then withdrew it for himself. He also is alleged to have made a number of misrepresentations to U of L Audit Services by transferring funds between bank accounts to conceal his theft and by providing false bank statements to the private practice groups.
This case is being prosecuted by Assistant U.S. Attorney Bryan Calhoun and was investigated by the U of L Police Department, the U.S. Secret Service, the Internal Revenue Service and the U.S. Postal Inspection Service.
The university, where Vaughn initially began work as an accountant, said in September that it had fired Vaughn.
The newspaper reported then that he was one of at least six university employees accused during the previous five years of stealing the school’s money or grant funds under its control.
Gary Mans, a spokesman for the health sciences campus, said the school “has solid internal controls in place to guard against the misuse of university funds,” but that it’s “up to employees and their supervisors to follow those policies and procedures.”
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Content retrieved from: http://www.delawareonline.com/story/news/crime/2014/04/02/former-u-l-official-charged-stealing-million/7224345/