| #536 - January 14, 2008 |
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| #536 Updated: 1/14/08 8:40 a.m. World Bank slams corruption in aided Indian healthcare projects afp.google.com | 1/12/08 | Staff Writer NEW DELHI (AFP) — The World Bank has exposed serious fraud in Indian healthcare programmes it has funded and said New Delhi had agreed to help stamp out corruption, officials said Saturday. Serious lapses in auditing, malpractice and corruption were found in five healthcare programmes launched between 1997 and 2003, it said, adding that the projects were jointly funded by donors, India and the World Bank. A "detailed implementation review launched by the World Bank and the Indian government in 2006 found serious incidents of fraud and corruption in the five health projects," it said. Four of the projects under investigation have already been completed while the fifth is ongoing and was facing an in-depth review, the Bank said in a statement. An Indian health ministry spokesman said the projects that received overseas funds dealt with tuberculosis, malaria and HIV/AIDS control. The World Bank said the in-house review was prompted by an internal investigation in 2005 into a reproductive and child health project in India. "It found corrupt practices by two pharmaceutical companies which were subsequently disbarred by the Bank and the (Indian) government," it said. World Bank president Robert Zoellick lashed out at random corruption in India, where staterun hospitals and clinics are seen as incapable of caring for the nation's billion-plus population. "The probe has revealed unacceptable indicators of fraud and corruption," Zoellick said in a statement issued in India. "The government of India and the World Bank are committed to getting to the bottom of how these problems occurred and I appreciate the resolute commitment of the government, which will be in the lead in pursuing criminal wrongdoing," he said. Zoellick also blamed administrative lapses by the Bank for the fraud. "On the Bank side, there were weaknesses in project design, supervision and evaluation. There are also systemic flaws. I'm determined to fix these problems," he said. The government and the Bank have committed to improving oversight of the total nine health projects supported by the organisation, Zoellick added. World Bank Managing Director Ngozi Okonjo-Iweala, who visited New Delhi for talks with top officials Friday, said the Bank would invite external auditors to help fight corruption in the future. India also warned it would take speedy action. Health Secretary Naresh Dayal said four teams of people from the finance and health ministries would be set up to "probe the irregularities" and action would be taken against those found guilty. The government has already decided that procurement for Bank- funded health projects should be done through the United Nations Organisations of Procurement, Dayal said. India's finance ministry also promised "exemplary punishment" for those found guilty, a ministry spokesman said. Ex-RMH Worker Pleads Guilty To Embezzlement dnronline.com | 1/12/08 | Pete DeLea HARRISONBURG - A former hospital secretary, who had twice been convicted on embezzlement charges, pleaded guilty Friday to taking more than $100,000 from Rockingham Memorial Hospital. Barbara Ann Burchell, 63, pleaded guilty to one count of embezzlement in front of Judge James Lane in Rockingham County Circuit Court. Burchell faces up to 20 years in prison. RMH filed a written complaint in November with the Harrisonburg Police Department alleging Burchell stole 186 deposits totaling $129,691 from the hospital's food and nutrition services department from July 2005 to October 2007. As secretary, the Edinburg resident was in charge of making the department's deposits. "Instead, she would take the checks to the cashier's office, cash them and take money for herself," said Assistant Commonwealth's Attorney Christopher Bean in court Friday. "When confronted, she admitted taking the money and said she was sorry," he said. Hospital spokeswoman Debra Thompson said no one from the hospital would be making a comment about the guilty plea. Burchell previously was convicted of embezzlement in Loudoun County in 1989 and in Staunton in 1993, according to court documents and testimony in her first court appearance. During a December bond hearing in Rockingham County District Court, Burchell testified that she served four years in prison following her second criminal case. Also during that hearing, Assistant Commonwealth's Attorney Correy Smith said Burchell had a total of five felony convictions, including one for check fraud. Burchell, whose bond was set at $3,000, never posted bail and has remained in Rockingham County Jail since her arrest. Following Friday's proceeding, she was taken back to the jail pending her sentencing date set for March 17. After Burchell's arrest, hospital officials said they were aware of her prior felony convictions but hired her anyway with the hope that the secretary wouldn't steal again. "To our dismay, this employee took advantage of this ‘second chance' [and repeated] her prior criminal activity," hospital officials said in a statement in December. Although the hospital had safeguards in place, Thompson said Friday the hospital reviewed its theft-prevention measures following the incident and implemented additional procedures. "We looked at what we were doing and made changes to create more safeguards," said Thompson. "It's something we needed to do and we've done it." Ford dealer sentenced to jail for fraud mlive.com | 1/11/08 | Associated Press MUSKEGON, Mich. (AP) — The former owner of a Muskegon-area Ford dealership is going to jail for fraud. Tony Nielsen has confessed to defrauding hundreds of customers of more than $300,000 through an extended warranty scam and failing to pay off loans on traded-in cars. The Muskegon Chronicle says he pleaded no contest last month to three counts of larceny by conversion of more than $1,000 but less than $20,000. Circuit Judge Timothy G. Hicks ordered the 43-year-old Nielsen, of Wayland, to jail for 10 months, followed by 30 months' probation and 100 hours of community service. Nielsen was ordered to pay full restitution to his victims, but authorities say much of that amount has already been paid. Nielsen also must pay $78,052 to the insurance company that covered the extended warranties. 6 accused of fraud in mortgage scheme Houston Chronicle | 1/11/08 | Robert Crowe Six people were indicted Friday on theft charges, accused of mortgage fraud in connection with a $40 million scheme that already has resulted in lengthy prison sentences for four others, authorities said. Harris County Assistant District Attorney Markay Stroud said each of those indicted Friday had accounted for $1 million to $3 million in fraudulent mortgages linked to escrow officer Stevie L. Johnson. The three mortgage brokers, a lawyer and two other women were charged with aggregate theft charges. The first-degree felony charge is punishable by five to 25 years in prison. Stroud said the six were linked to Johnson, a former closing officer sentenced to 40 years for helping co-defendants get fraudulent loans. The scheme involved finding "straw buyers" to use their names and credit to purchase a home, investigators said. Those buyers, some of whom were unwitting victims, had no intention of living in the homes or paying mortgages. Investigators said Johnson participated in nearly 300 fraudulent mortgages on homes that ranged from $80,000 to $500,000 across the Houston area. Stroud said authorities began investigating the latest group as early as 2003. The case is one of many high-profile mortgage fraud cases brought by local and federal authorities in the past year. Last month, 37 people were indicted on charges of obtaining $5.6 million in fraudulent mortgages in an unrelated investigation. Mortgage fraud began to increase around 2000, when interest rates fell and the housing market began a boom, said Stroud, a consumer fraud division prosecutor. "It formed the perfect storm where people were refinancing homes and all these people were going out buying homes," she said. "Checks and balances went by the wayside. Authorities say mortgage fraud has not abated, despite a slowdown in the market. "It's like turning a big ship. It's slow. We're still seeing quite a bit," said FBI Houston Special Agent Pat Villafranca. Former Oregon Fair worker pleads guilty to embezzlement blog.oregonlive.com | 1/11/07 | J Killen SALEM -- A former Oregon State Fair employee has been sentenced to three years in prison for stealing about $94,000. Deborah Gorski, 56, pleaded guilty Thursday to the theft from rental payments the Oregon High School Equestrian Team made to the fair. Gorski had worked for the State Fair and Exposition Center more than a decade when the embezzling was discovered in 2006. She was an event and sales manager with a salary of more than $58,000 a year. Fair Manager Dave Koellermeier said the fair has taken steps such as software and cash-handling changes and training. Catholic Church Missing Nearly $270k kansascw.com | 1/11/08 | Meagan Strader It was supposed to be the season of giving, but a longtime employee at Holy Savior Church is suspected of taking instead. "I was reviewing some payroll records for another employee and I noticed there an inflated salary being payed," says Holy Savior Pastor, Father Pat Malone. He hired an accountant to look over the church's books. The report came back showing nearly $270,000 had been misused. Father Malone adds, "I was devastated, very sad, very disappointed." Father Malone says the loss of money won't affect programs at the school, or the church, but they say it will affect how they operate from here on out. In a letter, sent to church members, it says background checks will now be done on employees, all checks will need double signatures and reviews of the church's books will be done both monthly and annually. "We've been a very small, close, intimate operation so we were laxed, I was laxed." Father Malone just hopes the parish can use what happened to become closer and stronger and eventually move past what happened. "To hold onto anger or resentment serves no useful purpose and we need to forgive." They say any judgement will be left up to the courts. ________________________ |