Children’s Hospital Executive Director Makes the Front Page News: Lessons from a Fraud Case Study that Stunned a Community

• In Event: Reception with ELS posters
  In Poster Session: Effective Learning Strategies Session

Abstract

This session involves a fraud case by the Executive Director of a nonprofit children’s hospital; the facts stunned the community, as the perpetrator was a well-regarded and trusted employee. The poster session utilizes information and documents culled from the Court records and news articles to aid teaching of relevant fraud topics. The misappropriation of cash amounts in excess of $700,000 was taken over a six-year period, and resulted in eleven Class 1 and Class 3 felony counts, to which the defendant eventually pleaded guilty. Details are further linked to the fraud triangle model as well as a discussion of relevant expenditure cycle controls that might have circumvented the crime. The facts of County Case 2014-CF-001041 can be integrated with introductory accounting courses, auditing, ethics, and nonprofit accounting courses to heighten student awareness and discussion. The objective is that discussion of the circumstances and outcomes of stealing resources intended for seriously sick children may prevent future accounting students from making the front page news in such a detrimental fashion.

Author

• Carol M Jessup, University of Illinois-Springfield