Florida hospital CEO charged with fraud after allegedly embezzling funds


http://www.healthcarefinancenews.com/news/florida-hospital-ceo-charged-fraud-after-allegedly-embezzling-funds?mkt_tok=eyJpIjoiTmpFeE5tVmxNVEF3T0RVMSIsInQiOiJOZzVFMTN2NUpJTllJRVk0Q0RjN0lHQWN5bEhaOHVsWWRFWXpuQ3VDbGx2VkJYRFFmanBPaFJ0bXpvaWs2R3lmVUdGNWpjeVNKek13RWNHeVV1OHpRYUk1UngwelZ1WUhOdDU3SjZJa20rRGltZ2tCUDFFZzJWdGtKbEd3d1NtQyJ9

 

Former chief executive of Calhoun-Liberty Hospital is charged with using money to pay various personal expenses.

A former Florida hospital CEO has been indicted by a federal grand jury on charges he embezzled money from the hospital where he worked through false billing practices and a shell company, according to the U.S. Department of Justice.

Phillip Hill Jr. of Blountstown, Florida has been indicted on 24 counts of wire fraud and 4 counts of filing false tax returns. The indictment alleges that between 2010 and 2015, when Hill served in dual roles as Chief Executive Officer and department head of Emergency Management Services, to embezzle money from Calhoun-Liberty Hospital.  According to the indictment, he billed the hospital for goods it never received using invoices in the name of “Southeastern Medical Supply,” a fake business connected to a bank account he himself controlled. The indictment also stated that Hill ordered medical supplies from eBay and other vendors then billed the hospital for them supplies at price points far exceeding what Hill actually paid, the DOJ said.

According to the indictment, Hill used the funds in the Southeastern bank account to pay personal credit card bills, fund a business he owned and operated, to obtain cash, and to pay personal expenses including groceries and travel.

The DOJ also said the indicated that an employee at the hospital once inquired after contact information for Southeastern Medical Supply, and Hill responded that he had lost his phone and didn’t have the number, and also that the last time he had “talked with” the company they were discussing going out of business.

The maximum penalty for each wire fraud count is 20 years in prison. The maximum penalty for each count of filing false tax returns is 3 years in prison.  A trial date of this July 2nd has been set. The case was investigated by the Internal Revenue Service — Criminal Investigation, the Florida Department of Law Enforcement, and the Blountstown Police Department.

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