According to the audit, Contractor, Casey Hughes and Insurance Agent, Russell Ham fraudulently billed and split proceeds with the hospital's Administrator, Wendell Alford.
During the audit, other transactions were found which include:
Contractor Fraudulently Billed Hospital and Split Proceeds with Hospital Administrator
From October 2006 to June 2012, Casey Hughes, agent/officer of Tech Solutions LLC,
submitted fraudulent billings totaling $2,029,504 to the Hospital for which his company received
payments. Records indicate that Mr. Hughes paid former Hospital Administrator Wendell Alford at
least $566,874 from these proceeds. Both Mr. Hughes and Mr. Alford confirmed they split the
Insurance Agent Fraudulently Billed Hospital and Split Proceeds with Hospital Administrator
From January 2007 through April 2012, Russell Ham, insurance agent and officer of
Insurance World Inc., fraudulently billed and received excessive payments from the Madison Parish
Hospital (Hospital) totaling $2,998,637 (50% of the $5,979,487 total billings). Mr. Ham stated that
he inflated his billings to the Hospital and split the proceeds (between $817,000 and $1,498,756)
with former Hospital Administrator Wendell Alford.
Hospital Administrator Paid in Excess of Contracted Rate
From January 2009 through April 2012, Mr. Alford received wages totaling $60,389 in
excess of his contracted rate.
Personal Use of Hospital Credit Cards by Hospital Administrator and Commissioners
Hospital records indicate that from October 2008 to April 2012, Hospital credit cards were
used to incur personal charges totaling $75,846. These personal charges included purchases totaling
$69,433 made by Mr. Alford, and airfare purchases totaling $6,413 for spouses of former Board
Chairman Hayward Fair and Commissioner Marjorie Day.
Hospital Administrator Improperly Submitted and Received Mileage Reimbursements
From December 11, 2009, to May 31, 2012, Mr. Alford improperly submitted mileage
reimbursement requests totaling $11,023 to the Hospital during the same period he received a vehicle
allowance and used Hospital credit cards to purchase fuel totaling $8,703.
No Accounting of Travel Advances Paid to Hospital Administrator
From October 2008 to April 2012, the Hospital issued 12 travel advance payments to
Mr. Alford totaling $9,500, for which there was no documentation to account for how Mr. Alford
used these funds.
Improper Gifts Provided to Hospital Administrator and Board Chairman
Solomon Sarpong, the Hospital's landscaping contractor, provided free landscaping services
for former Hospital Administrator Wendell Alford and former Board Chairman Hayward Fair, which
may violate the state's ethics law.
Personal Use of Hospital Equipment by Board Chairman
Former Board Chairman Hayward Fair stated that he used the Hospital's tractor for personal
purposes. In addition, Mr. Fair appears to have damaged the tractor and used Hospital credit cards
and charge accounts to incur charges totaling $682 for fuel and maintenance while he used the tractor
for personal purposes.
Hospital Provided Improper Insurance Benefits to Board Commissioners and Other Individuals
From January 2009 to May 2012, the Hospital improperly used public funds totaling
$335,931 to provide health and life insurance benefits to commissioners and other
Prohibited Contractual Arrangements
During our review, we noted that the Hospital had contractual arrangements with certain
employees, an immediate family member of the Hospital administrator, and doctors that may be in
violation of the state's ethics law.
Employees Received Payments from Hospital Vendors
From January 2007 through June 2012, we noted instances in which Hospital employees
were paid by vendors to provide services during their normal Hospital work hours which may violate
the state's ethics law.
Donation of Public Funds
From June 2007 to April 2012, the Hospital used public funds totaling at least $404,510 for
(1) improper nursing scholarships; (2) education, licensing, and travel expenses incurred by the
contract attorney; (3) office celebrations, gifts, and flowers; (4) payments of unused sick leave; and
(5) payments of voluntary insurance policies.
Inappropriate Public Meetings Practices
The Board of Commissioners conducted an excessive amount of Hospital business in
executive session, in possible violation of the Open Meeting law.
Click here to read the summary of the audit.
Click here to read the full audit.