The former chief operating officer of the taxpayer-funded Cumberland Pediatric Associates in Lebanon allegedly stole more than half a million dollars, Tennessee Comptrollers said.
Comptrollers identified the woman as Emily Gannon.
CPA provides preventative and acute care to children from birth to age 18. The facility serves patients from its clinics in Lebanon and Gordonsville and accepts TennCare insurance payments.
“Investigators determined that Gannon stole at least $513,302 between January 2014 and August 2019. Gannon was responsible for issuing payroll payments to all CPA staff, including herself, and she manipulated the process in multiple ways to obtain and conceal her fraudulent pay,” Comptrollers said in a statement.
“The investigation revealed that Gannon paid herself an additional $312,852 by inflating CPA’s payroll payments to herself. For example, in March 2015, Gannon gave herself a $60,000 raise without the owner’s knowledge or approval. Gannon also paid herself bonuses totaling at least $200,450 without the knowledge of the owner. As Chief Operating Officer, Gannon produced federal Form W-2s for all CPA employees. Gannon prepared her own W-2s which substantially reduced the actual compensation she took from CPA.”
CPA terminated Gannon’s employment in August last year. This month the Wilson County Grand Jury indicted Gannon on one count of theft over $250,000, two counts of forgery, and one count of criminal simulation, according to the press release.
This is the first Comptroller’s Office investigation completed since the General Assembly passed legislation addressing this issue in 2019. That legislation allows the Comptroller’s Office to assist district attorneys general and the TBI in the investigation of private funds if the Comptroller deems the investigation to be in the public interest, the press release said.
“Our Office employs some of Tennessee’s foremost experts in forensic accounting and fraud examination,” Comptroller Justin P. Wilson said in the press release.
“This investigation was clearly in the public interest because this medical practice accepts TennCare payments. I am pleased we can bring our expertise to the fight against fraud in Tennessee.”
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