Lack of care in financial monitoring can open the opportunity for less-than-trustworthy employees to perpetrate fraud – and often, the results can put an end to a business.
Bangor Women's HealthCare, a clinic based in the Maine city with which it shares its name, recently announced that it would be permanently shutting down its operations "due to unforeseen circumstances."
The events surrounding the practice's decision to close its doors, however, may be more complex than that statement suggests. According to the Bangor Daily News, Dr. Robert Grover, the clinic's owner, had been dealing with the fallout from an embezzlement case that began in 2009 when he reported unusual billing activity to the federal government.
According to the source, Dawn Zehrung, a former employee at the clinic, was charged with fraud and convicted in 2011. She was dealt a three-year sentence for fraudulent overbilling.
"Ms. Zehrung regrets her actions and is saddened by the closure of the practice," said Virginia Villa, the public defender who represented Zehrung, according to the news source.
But Grover's trouble's didn't end with Zehrung's conviction. The Bangor Daily News reported that the doctor had to pay the federal government nearly $300,000 in a settlement. Grover owns two other practices – and hopefully, he's implemented accounts payable and recovery audit solutions at those operations.