Former Hospital CFO Sentenced to Federal Prison

John Commins, July 12, 2011

A former chief financial officer who pleaded guilty to bilking about $200,000 from hospitals in Ohio and Connecticut was sentenced Monday to a maximum 33 months in a federal prison, three years of supervised release, and ordered to pay restitution, the Department of Justice said.

William Roe, 55, had been the CFO at St. Rita's Hospital in Lima, OH, from 2006-2009, and the CFO of Danbury Hospital in Danbury CT from 2009-2010. 

From 2008-2010, Roe used a company he'd created called Cycle Software Solutions to defraud both St. Rita's Hospital and Danbury Hospital by billing them for $75,000 and $95,000, respectively, for nonexistent software and services. Roe also billed Danbury Hospital for another $25,000, but that payment was stopped, DOJ said.

On Jan. 4 Roe pleaded guilty to one count of wire fraud.

On Monday, U.S. District Judge Vanessa L. Bryant ordered Roe to pay restitution of $75,000 to St. Rita's Hospital, and $141,166 to Danbury Hospital. The Danbury Hospital restitution figure includes an additional $46,166 that Roe improperly received, DOJ said.

Roe was arrested on Aug. 17, 2010, and had worked as an adult day care aide for Goodwill Industries after he was released on bond.

That bond was revoked in March when Roe violated the terms of his release and used the Internet. Prosecutors said Roe sent his probation officer an email using his wife's email account, and under his wife's name.

John Commins

John Commins is a senior editor at HealthLeaders Media.

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