Stop The Dominoes From Falling Now

Former exec and former detective arrested on fraud charges

On Behalf of | Apr 23, 2019 | White Collar Crimes |

The couple was living the American dream. She was the chief operating officer of a respected health care provider. He was a long-time detective who investigated fraud cases for the district attorney’s office.

Now the two face federal charges that include mail fraud, money laundering and embezzlement.

The former executive and former cop are accused of defrauding the Butler Health System of about $1.3 million. Law enforcement officials say the pair used the stolen funds for home improvements, vacations, concerts and to cover expenses for a dirt bike racing complex they own.

Authorities claim that the married couple used Butler Health credit cards and expense reimbursement claims to try to disguise their spending as legitimate business costs.

Prosecutors are asking for the forfeiture of their home, business, vehicles and $1.3 million.

She was fired as COO in 2017; he was fired last August after 20 years on the police force.

According to the indictment, the former top executive used her company credit card to make just over $500,000 in personal purchases.

Officials said she would often get approval from the company’s CEO for business purchases and then alter the reimbursement forms in order to get larger payments from the accounting department. That fraudulent practice netted her $489,000, officials claimed.

According to a news report, she allegedly used a similar ruse on direct vendor disbursement forms, getting approval for funds to buy gifts for business meetings. After gaining approval for the expenses, she would then reportedly alter the amounts upward in order to spend the excess funds on herself.

Both suspects face the possibility of years of incarceration if convicted. Both should decline to speak with investigators and prosecutors until they discuss the evidence and allegations with an attorney experienced in white collar defense.

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