Former Grady Hospital employee indicted for embezzlement

6:10 PM, Jun 19, 2013   |    comments
Grady Memorial Hospital
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ATLANTA -- The former Assistant controller for Grady Memorial Hospital Corporation has been indicted by a federal grand jury for embezzling more than $450,000 in public funds.

According to the indictment, Donald Thomas, 53, of Atlanta, began accessing Grady's payroll system to fabricate additional compensation, such as vacation pay and severance pay, to be issued to terminated Grady employees beginning in Jan. 2008.

Thomas, who was employed with Grady from Dec. 1994 through June 2011, then altered payroll records so that the additional payments were deposited directly into accounts under his control.

The indictment also states on two occasions, Thomas created paper checks for falsified compensation made payable to terminated Grady employees.

He allegedly forged the employees' signatures to endorse the checks before depositing them into one of the bank accounts under his control.

Thomas' scheme was uncovered after a former employee expressed concern that her 2011 W-2 tax form indicated a larger amount of compensation from Grady than she had actually earned.

An investigation revealed that her payroll records had been altered and additional pay had been deposited in her account, which was controlled by Thomas.

In all, 22 former Grady employees received inaccurate tax forms as a result of Thomas' alleged crimes, according to the indictment.

Thomas was arraigned on Thursday on charges of embezzlement, wire fraud and bank fraud and was released on bond.

These three charges combine for a maximum statutory penalty of 30 years in prison and a fine of up to $1,000,000.

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