Norfolk, Va.-based Sentara Healthcare lost $7.6 million from its retirement fund for executives due to an investment adviser’s money-laundering scheme, according to an Associated Press report published in The News Leader.
Eleven businesses and individuals lost $16.2 million to the fraud over seven years, but Sentara’s loss is the largest.
Timothy Roth, an investment adviser with Keysoft Consulting Group from Illinois, pleaded guilty in October to mail fraud and money laundering. He admitted to fraudulently transferring, liquidating and removing fund shares from his clients for his personal use, according to the report. This pattern of activity began in May 2004 and continued throughout March 2010, although losses in Sentara’s account occurred from Dec. 2008-2010.
Sentara officials have said they’re trying to recover the funds but “aren’t optimistic,” according to the report. An official said that whether financial loss is due to “market fluctuations or theft, Sentara is still obligated to honor those benefits for all employees,” according to the report.
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