Former Corporate Counsel of Pennsylvania Hospital Charged With Embezzling $1.7 Million

Roosevelt Hairston, Jr., 45, of Malvern, Pennsylvania, has been charged with embezzling some $1.7 million from the Children's Hospital of Philadelphia where he had served as General Counsel.  According to authorities, over a period of about 12 years, from 1999 until 2011, Hairston created eight shell companies, including Educational Strategies and The Children's Research Alliance, which he used to submit phony invoices to the hospital for various fraudulent expenses.  Hairston used the ill-gotten gains to support a lavish lifestyle, including purchases of luxury vehicles, a yacht, real estate and other personal luxury items.  According to the criminal information filing, Hairston used the identity of a friend and created an e-mail address in his friend's name to send e-mails to CHOP verifying the phony invoices.  Hairston, who was charged with mail fraud, money laundering, and filing a false tax return  is expected to enter a guilty plea, according to his lawyers.

Read the story here, here and here.

Update (7/13/11): Hairston pleaded guilty today to embezzling $1.7 million from Children's Hospital of Philadelphia.  He faces up to 7 years in prison.