Monday, October 20, 2014

Possible $700K Embezzlement Investigated In Oklahoma

From KJRH Ch. 2 on 10/17/2014:

MUSKOGEE, Okla. - Police are currently investigating reports of possible embezzlement from the Muskogee Children’s Clinic.

According to Muskogee police, funds in excess of $700,000 have been reported missing from the clinic, located at 3101 Chandler Road.

Clinic staff called police to report the crime Friday.

Police say the funds were discovered missing during an inquiry by the Internal Revenue Service. They were confirmed when an independent auditor was hired by the clinic.

The IRS said payroll taxes haven't been paid since the clinic hired an independent auditor.

Police say the man who worked on finances for the Muskogee Children's Clinic funneled money from the business into his personal account.

Update from the Muskogee Phoenix on 10/20/2014:

A Muskogee medical clinic filed a civil suit Monday seeking damages resulting from the alleged embezzlement of $791,959 by a company that provided staffing and management services.

Office Medic and its principal owner, David Edwards, were named as defendants in the lawsuit. The case was filed Monday in Muskogee County District Court by Childrens Clinic and the four physicians who practice at the clinic.

The doctors allege in their petition that Edwards obtained access to funds belonging to the clinic during the course of his contractual relationship with the physicians. The petition alleges the funds embezzled or diverted by Edwards to entities in which is said to have an interest exceeded what his company was owed for staffing and services provided.
The alleged diversion or wrongful transfer of funds was discovered Sept. 11. According to the petition, the amount of money missing was calculated by a forensic audit conducted subsequently to the discovery of the “wrongful conversion” of funds.

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