Hairston pleads guilty to em­bez­zle­ment scheme

Modern Healthcare - - Late News -

The for­mer gen­eral coun­sel of Chil­dren’s Hos­pi­tal of Philadel­phia pleaded guilty to charges stem­ming from a lon­grun­ning scheme to em­bez­zle from his for­mer em­ployer. The U.S. at­tor­ney’s of­fice charged Roo­sevelt Hairston Jr. of Malvern, Pa., with mail fraud, money laun­der­ing and fil­ing a false tax re­turn. In his plea agree­ment, Hairston ad­mit­ted he stole $1.7 mil­lion us­ing fake in­voices, shell com­pa­nies and iden­tity theft. While over­see­ing med­i­cal­mal­prac­tice de­fense for the hos­pi­tal be­tween 1999 and 2003, he cre­ated fic­ti­tious ex­pert wit­nesses and false in­voices for ser­vices that wit­nesses never pro­vided, pros­e­cu­tors al­lege in the plea mem­o­ran­dum. He re­sumed em­bez­zling funds af­ter gain­ing over­sight in 2007 of the hos­pi­tal’s com­mu­nity and gov­ern­ment re­la­tions, pros­e­cu­tors al­lege. He was re­leased on $700,000 bail and is sched­uled to be sen­tenced Oct. 13. Chil­dren’s Hos­pi­tal of Philadel­phia ter­mi­nated Hairston’s em­ploy­ment on Feb. 18 af­ter an in­ter­nal in­ves­ti­ga­tion “found ev­i­dence of fi­nan­cial ir­reg­u­lar­i­ties on his part,” the hos­pi­tal said in a June state­ment.

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