Children’s Healthcare of Atlanta lost $5.3 million in a 2023 business email compromise scheme that ended with a four-year prison sentence for the accountant who laundered the stolen funds, most of which were recovered.
A federal jury convicted Ronald Deabler, 66, a former certified public accountant who was never a Children’s employee, of money laundering conspiracy on Feb. 12 following a two-day trial in U.S. District Court for the Northern District of Georgia. Judge Eleanor Ross sentenced Mr. Deabler on July 22 to 48 months in prison, two years of supervised release and $682,860 in restitution, according to court records reviewed by Becker’s.
A hacker broke into the computer systems of a Children’s furniture vendor in June 2023 and changed the bank account information the vendor had on file, according to prosecutors. The updated account belonged to Mr. Deabler, and Children’s wired $5.3 million to it before quickly detecting the fraud and notifying its bank and the FBI. Mr. Deabler was not involved in the hack itself; he agreed to help move the stolen money in exchange for a commission, the Justice Department said.
Mr. Deabler then moved more than $1 million into a second account and converted about $3.5 million into cashier’s checks mailed to individuals and entities at the direction of an unidentified co-conspirator, according to the government’s sentencing memorandum. About $4 million of the stolen funds has since been recovered.
In a victim impact statement filed with the court, Children’s called the scheme “not a victimless crime” and said the pilfered money had been earmarked for capital projects and facility improvements supporting patient care.
U.S. Attorney Theodore Hertzberg said in a news release that scammers who target healthcare institutions “will face the full consequences of their actions.”
“Since this incident, Children’s has implemented additional controls and revised the process for vendors requesting any update to their bank account information,” a health system spokesperson told Becker’s.
Editor’s note: Becker’s reached out to Mr. Deabler’s attorneys for comment and will update the story if they respond.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.