A Toronto woman was jailed for 15 months for embezzling $426,000 from one Canada’s premier cardiovascular clinics. According to trial testimony, this trusted employee of 27 years had written over 200 forged cheques to herself. Her intimate knowledge of the accounting systems and processes allowed her to escape detection for nearly eight years.

The fraud came to light in 2005, when a Royal Bank account manager notified the team of surgeons that the administrator had written two $5,834 cheques to herself, apparently signed by a surgeon and unrelated to any legitimate expense. The bank noticed the signature didn’t match any one that was authorized.

Despite earning a six figure salary and being one of the highest paid administrators in the University Health Network, she apparently fell victim to alcohol abuse and stress which, according to the accused’s testimony, led her to steal from her employers.

The stolen money was skimmed off the team’s Academic Enrichment Fund, used for cutting-edge research and education.

The fund was so depleted from her fraud that four researchers had to be laid off and its activities halted for two years.

This story is compelling evidence of the need for constant vigilance on the part of health care providers that employ any staff. Furthermore, it is a poignant example of what can occur when one individual has complete and unsupervised access and control over a business’ finances.

Click here to learn more about the risks fraud represents to your practice and how you can protect yourself and your patients from becoming victims.

Source: Toronto Star, April 2007.