Physician Office Embezzlement Article

Stephen Pedneault, CPA/CFF, CFE, Tuesday, February 7th, 2012

Are Your Employees Stealing From Your Practice?

This is the second of four articles by Stephen A. Pedneault on employee embezzlement.

In my last article, I discussed the staggering rate at which medical practices fall victim to theft and embezzlement, and the critical financial controls needed to combat the risk of an employee crossing the line from working for you … to working for him or herself, at the expense of your practice.

I am optimistic that the practice owners who read my first article returned to their practices, spoke with their employees responsible for billing and finances, and evaluated the financial controls in place. If they found those controls deficient, it is my sincere hope the practice owners implemented my recommendations.

But it doesn’t end there. Most people believe that if they cover the billing cycle from scheduling through collections, nothing further could happen within the practice’s billing cycle. They couldn’t be further from reality. Individuals under significant personal pressure to “permit” themselves to steal from their employer will often find other ways to divert funds, conceal their thefts from detection, and rationalize their actions.

http://physiciansmoneydigest.com/your-practice/Are-Your-Employees-Stealing-From-Your-Practice

Republic MO Woman Sentenced for Embezzling $717,000 From Mercy Hospital

Springfield, MO) -- A Republic, Missouri woman who admitted to embezzling more than $717,000 from Mercy Health Care Systems (then St. John's) and the College of Nursing has been sentenced.

Amy Elaine Phillips, 39, has been ordered to serve 30 months in federal prison without parole. She'll also have to pay $717,999 in restitution to Mercy, and $115,117 plus interest to the IRS.

Phillips pleaded guilty in October to theft of program funds and tax evasion. She was employed as an administrative assistant for the College of Nursing from January 15, 2001, to February 26, 2009.

She was responsible for the College of Nursing staff payroll, budgetary issues and general administrative duties for the dean and program director of the College of Nursing.

http://ozarksfirst.com/fulltext?nxd_id=605242

Trial set in $1 million embezzlement case

BISBEE — A woman who allegedly embezzled nearly $1 million from her former employer, Sierra Vista Internal Medicine, is now scheduled for a jury trial in August in Cochise County Superior Court. Angelina Michelle Lopez, 34, was involved in numerous unauthorized payments totaling $967,166, between Aug. 1, 2005, and Dec. 31, 2009.     http://www.svherald.com/content/news/2012/02/03/247100

Unthinkable?

Thinking About the Unthinkable ? Embezzlement

by Roger P. Levin, DDS

Embezzlement is a touchy subject. No dentist likes to think that a staff member could actually take money from the practice. Yet the problem is common enough to deserve your attention—and the implementation of preventive measures.

How common is it? Embezzlement is the sort of crime that often goes unreported, and also undetected, so some estimates are shockingly high. But even more conservative numbers are sobering. A survey conducted in 2007 by the ADA found that 17.5% of dentists were aware that their practice had been embezzled by an employee. That means that one out of every five or six dentists has been embezzled.

And we’re not talking petty cash here. In that same ADA survey, 23% estimated that they were taken for $20,000 or more.

http://www.dentistryiq.com/index/display/article-display/6128499857/articles/dentisryiq/practice-management/financial/2012/01/Thinking-about-the-unthinkable_-embezzlement.html

Argus 911

Argus 911: Man gets 15 years for embezzlement from cancer center

A Sioux Falls man who stole $145,000 from a cancer treatment center was given a 15-year prison sentence Friday in a Canton courtroom.

Terry Portra Sr., 46, embezzled the funds from the McHale Institute between January 2008 and January 2011, when other employees at the clinic noticed the discrepancies and turned him in.

Lincoln County State's Attorney Tom Wollman said Portra hadn't spent the money on drugs, alcohol or gambling. He instead spent it to maintain a lavish lifestyle, purchasing day spa trips for himself and his wife, and to pay off debts from a previous bankruptcy.

http://www.argusleader.com/article/20120121/NEWS/301210015/Argus-911 -Man-gets-15-years-embezzlement-from-cancer-center