PHILADELPHIA - 6/5/2011 - Roosevelt Hairston Jr. of Malvern, Penn., was charged in a three-count "information" or accusation, with mail fraud, money laundering, and filing a false tax return for his embezzlement of $1.7 million from the Children’s Hospital of Philadelphia, United States Attorney Zane David Memeger announced recently.
Hairston was employed in various senior positions at CHOP, including most recently as general counsel and executive vice president.
The information alleges that, between 1999 and February 14, 2011, Hairston used dozens of false invoices he created for shell companies to steal from CHOP. Hairston was able to steal for so long because he occupied a position of trust at the hospital and because he engaged in extensive efforts to conceal and prolong the scheme. For example, when CHOP accounting personnel questioned some of the bogus invoices Hairston submitted, Hairston stole the identity of a long-time friend and created bogus e-mail addresses in the name of his friend. Hairston then sent e-mail messages to CHOP personnel to make it appear that the invoices were real.
Hairston allegedly used the funds he stole from CHOP to live a lavish lifestyle, purchasing luxury items like real estate, a luxury yacht with a captain to maintain the yacht, high-end automobiles, and many other luxury items.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Richard J. Zack.
Source: U.S. Department of Justice release.
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