LOUISVILLE, KY (WAVE) - A former University of Louisville executive was arraigned Wednesday on a seven-count federal indictment charging him with theft and bribery in programs that receive federal funds, money laundering, mail fraud, and filing false federal income tax returns, according to U.S. Attorney David J. Hale.
Hale said that over a six-year period, Perry Chadwick Vaughn, 36, of Sellersburg, Indiana diverted contractual checks and patient payments and then withdrew $2,809,489 for his personal use and benefit.
Vaughn had been a UofL accountant who was promoted to Executive Director of the Department of Family and Geriatric Medicine at the University of Louisville School of Medicine (DFGM-UofL), a position he held from January 2007 through August 2013. He was also business manager of DFGM's affiliated private physician practice groups (DFGM-Practice Groups) during that time frame. The practice groups included the Department of Family and Community Medicine, University Family Practice, University Family and Geriatric Medicine Associates, and University Family Practice Associates Center for Primary Care.
The indictment alleges that between November 2007 and March 2013, Vaughn diverted 40 contractual checks issued to DFGM-UofL to bank accounts of DFGM-Practice Groups totaling $666,810 and then made withdrawals and payments from DFGM-Practice Groups' bank accounts for his personal benefit. Hale said $1,270,835 of the funds were payments diverted from DFGM-UofL to DFGM-Practice Groups' bank accounts, and the remaining $1,538,654 in funds taken from the DFGM-Practice Groups' accounts were from general funds of the DFGM-Practice Groups.
Hale said during that same time period, Vaughn made a number of misrepresentations to UofL Audit Services by transferring funds between bank accounts to conceal his theft and by providing false bank statements of DFGM-Practice Groups.
According to the indictment, Vaughn is also charged with money laundering for making financial transactions involving the proceeds of unlawful activities designed to conceal their nature, location, source, ownership or control.
An affidavit attached to a criminal complaint claims that from 2011 to 2013, Vaughn purchased or leased nine luxury vehicles with a combined value of $475,000. In addition, the affidavit says, Vaughn purchased real estate, a $9,000 bracelet, luxury vacations and a Las Vegas casino.
In addition, on September 3, 2013, U.S. District Judge John G. Heyburn II granted a motion for a temporary restraining order that prohibits Vaughn and other entities having possession or control of Vaughn's assets from transferring, selling, concealing or otherwise disposing of assets acquired by Vaughn or on behalf of his ex-wife.
Vaughn's trial date is set for June 3, 2014. If convicted, he faces up to 55 years in prison, a 16-year period of supervised release and a fine of $1,250,000.
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