Major Embezzlement Scheme Exposed in Panola County
Following a joint investigation by the State Auditor’s Office, FBI, United States Attorney and the USDA, State Auditor Stacey Pickering returned $85,678, the final civil portion of the $229,427 recovered in the case involving David Chandler, former county administrator of Panola County. Chandler pled guilty to embezzlement and mail fraud in a scheme to defraud the Public Employees Retirement System and became a cooperating witness in a larger scheme to embezzle funds from Panola County through the purchase of Tri-Lakes Hospital.
David Chandler, along with 3 other individuals carried out an elaborate scheme to embezzle millions of dollars and defraud Panola County, the City of Batesville and several financial institutions relating to the purchase of Tri-Lakes Hospital.
Raymond Shoemaker, CEO of Tri-Lakes Medical Center and Lee Garner, controller of 2 nurse staffing companies were found guilty of multiple felony counts including conspiracy for kickbacks and bribery, conspiracy to make false statements, conspiracy to commit healthcare fraud; making false statements; embezzlement; bribery; false statements to the US Department of Agriculture and healthcare fraud. Dr. Robert Corkern, physician, pled guilty to one felony count while Chandler pled guilty to two counts earlier this year. All are awaiting sentencing later this year.
The conspiracy began in May 2005, when the county and city of Batesville owned the hospital, which was sold on Nov. 15, 2005, to Shoemaker’s Physician and Surgeons Hospital Group for $27.3 million. Chandler was the liaison between Garner and Shoemaker, allegedly funneling kickbacks from Garner to the former CEO, according to the indictment.
The financial recovery includes $126,487.72 recovered by the Public Employees Retirement System at the direction of the State Auditor; $7,939.81 was settled to Panola County; $9,321.69 in interest; $9,321.69 in investigative costs along with $76,356.38 for salary overpayment. Total recovered is $229,427.29. State Auditor Stacey Pickering presented a check to Panola County today in the amount of $85,678.07 bringing the civil case to a close.
“After a thorough investigation, I am pleased to report that over $229,000 has been recovered from this investigation into a scheme by Chandler to inflate his retirement benefits from the Public Employees Retirement System,” said State Auditor Stacey Pickering. “David Chandler was also a part of an elaborate scheme to defraud the taxpayers of Panola County, and I appreciate the work of our agents, the FBI, United States Attorney and the USDA in helping to bring this case to a close as well as PERS Executive Director Pat Robertson and the staff of the Public Employees Retirement System in recovering these funds on behalf of the taxpayers.”
A video of today’s presentation is available at http://youtu.be/XGkV_EuLENk.
4/18/12
Magnolia Tribune
