John Paul Funes headed the foundation for more than 10 years and led several multimillion-dollar fundraising campaigns for the hospital. He was fired in November after a third-party investigation revealed “a pattern of forgery and embezzlement of funds.”
The hospital hired Deloitte Touche Tohmatsu to review documentation that led to Mr. Funes’ firing.
“We’ve identified approximately $810,000 lost due to fraudulent activity committed by Mr. Funes,” Baton Rouge-based Franciscan Missionaries of Our Lady Health System, which owns Our Lady of the Lake Regional Medical Center, told The Advocate. “Over several years, he orchestrated a series of fraudulent transactions that involved the purchase and distribution of gift cards, charter flights and payments to individuals, including forged documents, invoices and signatures. He misled hundreds of people in and outside of our organization.”
Over the next 30 days, the Franciscan Missionaries will replace the $810,00 in lost funds. The organization plans to seek restitution from Mr. Funes.
More articles on legal and regulatory issues:
10 latest healthcare industry lawsuits, settlements
Co-owner of medical billing company pleads guilty to drug-testing scheme
Arizona hospitals can’t impose financial liens on patients, court rules
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.