News Releases
FORMER EXECUTIVE PLEADS GUILTY TO DEFRAUDING HOSPITAL OF OVER $2 MILLION
April 27, 2005
FOR IMMEDIATE RELEASE
David E. Nahmias, United States Attorney for the Northern District of Georgia, and Gregory Jones, Special Agent in Charge, Federal Bureau of Investigation, today announced that RICHARD G. HUTCHESON, 41, of LaGrange, Georgia, has pleaded guilty to a Criminal Information charging him with mail fraud. According to David E. Nahmias, and the documents and information presented in court:
HUTCHESON was employed at the West Georgia Medical Center ("WGMC" or "the hospital") in LaGrange, Georgia, from 1987 to 2003. During his tenure, HUTCHESON served at various times as Director of Plant Operations, Assistant Vice President, and Vice President, until his resignation on January 13, 2003. While employed at WGMC, HUTCHESON had responsibility for supervising construction projects at the hospital including selecting contractors and approving payments of invoices from contractors.
Between November 1993 and January 2003, HUTCHESON fraudulently obtained over $2 million from the hospital for his personal use and the benefit of others by directing certain contractors to submit false invoices to the hospital. HUTCHESON approved the fraudulent invoices and directed the WGHS accounting staff to issue payments to a certain contractor who kept a portion of the fraudulent proceeds for himself and used the balance to pay for, among other things, real property, hunting trips, trucks, all terrain vehicles, a camper, and personal watercraft for HUTCHESON and others as directed by HUTCHESON. HUTCHESON also used the proceeds of false invoices submitted by other contractors at his direction for the construction of a personal residence on Bartley Road in Troup County, Georgia, and to pay for various construction projects on property owned by another individual.
United States Attorney David Nahmias said of the case, “This case involved an egregious breach of trust by the defendant who enriched himself at the expense of a hospital providing much needed healthcare in the LaGrange community. The FBI is continuing to investigate this case and our office will carefully evaluate whether further charges are warranted.”
HUTCHESON could receive a maximum of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for July 1, 2005, at 10 a.m. before United States District Judge Jack T. Camp.
This case was investigated by Special Agents of the FBI, and by the LaGrange Police Department.
Assistant United States Attorney Russell G. Vineyard is prosecuting the case.
For further information please contact David E. Nahmias, United States Attorney or F. Gentry Shelnutt, Chief, Criminal Division, through Patrick Crosby, Public Affairs Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.usdoj.gov/usao/gan