Missing documents in Serenity valley rehabilitation hospital
Serenity valley rehabilitation hospital is a rehab situated in suburban Richmond Street. It was initially a five-bedroom cottage, but with time, the hospital has purchased more land and expanded, meeting all the requirements under the private health facilities acts 2007. After the new management was appointed, Michael Craglan, he found that some documents were missing, others were misplaced and that the serenity share drive was missing some shared network folders for the hospital. One of the most critical situations that met the new CEO of the hospital is the incident that happened on July 31, 2019. On this day, seven patients in the block C suffered severe signs of an allergic reaction suddenly. This arrived within an hour of them receiving their daily dosage of the 8 pm medication. The patients experienced symptoms of red rashes, swelling of the face, eyes, lips, tongue, and throat, as well as difficulty in breathing. The nurse in charge of the block reported that she gave the standard dose of the Sulphabact drug that is given to treat infections caused by bacteria. The drug was then taken to the laboratory for study. However, on the 3rd of august, 2019, dusty cardboard was found abandoned in the ambulance driveway. The box contained 40 bottles of pills that were labeled sulphabact. On the 13th of August 2019, Michael, the new CEO, got a mail with his usual daily mail and found a piece of newspaper with the words “serenity valley being scammed by its staff.” The CEO was in a lot of stress due to all the wrong things that were retaking place in the serenity valley hospital. For starters, there was a rise in the cost of overtime and casual employment of agency nurses because of the sick leaves by the permanent nurses. Secondly, the sensitive care had received a complaint from the hospital delivery fund, that there were complaints from the outpatient services that seemed to exceed the services given by the serenity valley hospital. Critically, on the 9th of august, 2019, the sensitive care received an anonymous call via its fraud hotline reporting that there was a scam taking place in the hospital, and a member of staff was responsible.
After much thinking, Michael Craglan saw that there was a need for an investigation. The investigation was done through the analysis of the current events that were taking place in the hospital. There was an anonymous tip on the newspaper, there was a negative health impact on the patients from the suspected sulphabact drug administered to them, the appearance of the sulphabact medications in a box postmarked china, a call from the fraud hotline, the rise in the cost of the staff and the complaints from the outpatient services. All these events were not adding up for the new CEO. Thus, he assessed the need for an investigation on potential fraud by appointing a fraud investigation team to conduct the fraud investigations. The research was done by health link investigations, which is a fraud investigation organization specializing in health care and organizational fraud.
Executive summary
The central allegation that led to the CEO of the serenity valley to investigate the hospital was the events of the sulphabact drug. The complaints of the rise in the cost of the staff, complain from the hospital deliver und on the issue of the outpatient services were regular health care organizational issues that he would have managed. However, the subject of the sulphabact drug was beyond him. At first, the drug, sulphabact, which was regularly administered to patients, suddenly caused an adverse reaction on the patients in block C in the west wing of the hospital. The drug was taken for testing; however, after a few days, a dusty box contains 40 pill bottles of the sulphabact medication were found, and it was postmarked for china. In addition to this, an anonymous call was received from the fraud hotline claiming that the hospital was reported for s scam in which a member of staff was involved. The final blow for the CE was the piece of newspaper he got either his mails with the words,” “serenity valley being scammed by its staff.”
According to the investigation done by the team of the investigation organization, it was found that a lot was going on among the staff of the serenity valley hospital. Patricia Field, the head nurse and a team who has worked for long in the hospital, was living a life that her $120,000 annual salary did not cater for. She also owned 20 horses that her salary could not afford to buy and had a gambling addiction, which she satisfied every Sunday, and she beds with $10,000. The investigation also inked Patricia with the sulphabact drugs that were postmarked to china. Patria used the coffee delivery man, Pedro, to exchange the drugs from the serenity valley hospital and posted them to china. Besides, this member of staff, Patria, had access to the accounts of the hospital and operated a pseud account by the name healthy service ltd. Patricia’s friend, and also a member of staff at the hospital, Mahala Santos, knew about these dealings but did nothing to present or report. The two were said to be involved in corrupt activities. There were also bank transactions for two cheque payments of $5,000 that had been paid from Serenity Valley Hospital into the East north account of Jessica Bolton. Even the banking wire transfer for $10,000, which was made payable to Serenity Valley Hospital and sent on the 26th August 2019, but was paid into the East north August bank statements in the name of Jessica Bolton that same date. Investigators say that a wire transfer payment of $10,000 was spent on the 26th August into that East north account. All this information gathered by the investigation team concluded that Patria Field was the mastermind behind all the wrong things that were happening in the serenity valley rehabilitation hospital. The corruption, fraud, and poisoned drugs to the patients were all her doing. Patricia was later on interviewed, and she confessed to her corrupt and fraud actions.
Approach
Fraud Examination team members
Aditi Basnet, who is a registered nurse but also worked as an undercover operative with Health-Link
Tung is a fraud investigator
Watkins is a forensic accountant
Nixon is an IT specialist.
The chief investigator of the Health-Link investigation firm
The CEO of the serenity valley rehabilitation hospital, Michael Craglan
Procedures
The investigation team checked each patient’s medical file, the facility’s sign-in log, and the patients’ appointment calendars
There was more information from the fraud hotline. The informant identified herself as the same whistleblower who alerted the hotline regarding scam activities being carried out by a member of staff. This informant stated that the Director of Nursing, Patricia Field, has been receiving kickbacks from a sales associate at Rexana Drug Company and other suppliers for granting them preferred supplier status. The informant stated that Field has won money in cash and also by direct transfer into a company she runs called Healthy service Ltd. Suppliers then inflate the price they charge to Serenity Valley to get their money back. Patricia Field is also accused of receiving bribes from a number of allied health suppliers who supply to the Serenity Valley hospital premises. This information was helpful, as it helped the investigation team know where to conduct their investigations.
The team examined the following documents from the Serenity Valley Rehabilitation Hospital documentary list:
- Profit and loss statements up to 5 years
- Balance sheets to 3 years
- Income tax returns for five years
- Sales by the month for the past three years
- Monthly sales tax returns for the past three years
- General ledger
- Petty cash and company cash disbursement files
- Current aged accounts receivable by customer
- Bank statements, canceled cheques, and deposit slips p to 2 years
- Company credit card statements up to 2 years
- Cheque registers for the past two years
- Year-to-date financial statements
Besides, the office desk of Patricia had a Fuji Xerox Discolor printer, serial number 762345, and her office computer, which were examined by the IT specialist, Nixon. Besides, Patricia’s desk had several memory sticks supplied by the hospital but marked with the words ‘PF”. Photographs were taken of every aspect of Patricia’s office, her printer, desktop computer, cabling, and labels.
An examination of the computer found a Post It notes stuck on the back of the desktop. The note contained the following ‘Uname- field and ”winnertakesall2’. John Nixon, the IT forensic investigator, used computer forensic investigation tools to analyze the open drives and ports to search for encrypted files. He also scanned RAM and registry information to show the recently accessed web-based and local email sites and any log-in or password information. John Nixon took a cryptographic hash of an evidence file to demonstrate that evidence has been preserved and recorded that hash elsewhere so that it can be established that the evidence has not been modified since the mixture was calculated.
The entire hard drive of Patricia’s computer was duplicated. The original drive was moved
To secure storage, sealed, and photographed. Through the analysis the media was
Verified again, using hashing to ensure the evidence is still in its original state. The team was aware criminal proceedings could take place from the investigation. Therefore they took great care that the incorruptibility of the data could be demonstrated.
The forensic analysis involved John Nixon, who was requested to:
- Review material such as metadata giving the timing and source of transactions, looking for
Unusual schedules such as weekends, evenings, transactions grouped around period ends or
Entries to different accounts.
- Review the Windows registry for suspect information
- Try the possible username/password on the Post It notes attached to Patricia’s desktop or
Alternatively, discover and crack passwords
- Keyword searches for topics related to the suspected fraud
- Extracting emails and Web site information for review.
A search for a file marked ‘Horses!!” Was done, and it produced a completed invoice on the Healthy service letterhead to Serenity Valley Hospital for $15,000 for physiotherapy pool equipment. The invoice was marked to be paid to the account of Jessica Bolton, Manager, Healthy service Ltd, East north Bank Account No. 428050.
Some TAB documents, including TAB betting tickets and a TAB account for August, were also found in a closed store in the hospital. The TAB account was in the name of ‘Jessica Bolton.’ It showed two bank payments for $5,000 each, cash payment transactions of $2,000, and two cash payment transactions for $1900. A number of Maymex receipts, dated the previous week, were also found, including receipts from the Horsedomain Saddlery, Richmond store for $8,000, and a receipt from Luxury Riding Boots & Hats for one equestrian riding suit and leather boots valued at $13,000. In the trash bin, a scrunched up a printed banking wire transfer for $10,000, which was sent by HGBC Global Transfer on the 26th of August 2019. The description of the scrunched up paper stated ‘payment to Serenity Valley Hospital.’
That banking wire transfer was carefully placed in a plastic A4 envelope, and the envelope labeled. The bank statement envelopes was an East north ATM Visa card receipt notice in the name of Jessica Bolton, and the address given was the same as Patricia Wright. Furthermore, the East north account statements issued in the name of Jessica Bolton were also addressed to the same home address of Patricia Wright. The account No. 428050 matched the account details given on the Healthy service invoice found in the file cabinet belonging to Patricia Field.
A quick perusal of these statements indicated a number of payments from Serenity Valley had been made into the account of Jessica Bolton. In particular, the August bank statement showed two payments of $5,000 were paid by Serenity Valley hospital into that account.
The investigation team, therefore, cross-checked the East north bank statement for August against the Serenity Valley August bank statement. The bank transactions for two cheque payments of $5,000 had been paid from Serenity Valley into the East north account of Jessica Bolton. A cross-check was made
Regarding the banking wire transfer for $10,000 sent on the 26th August 2019 against the East north
August bank statements in the name of Jessica Bolton. Investigators say that a wire transfer
Payment of $10,000 was paid on the 26th August into that East north account.
John Nixon added five SZMDLX Spy Hidden Cameras 1080P, one on the wall facing Patricia Field’s
Office door, one on the hospital hallway wall opposite the Ambulance Bay entrance, one at the end
Of the hallway facing the hospital entrance and one above the hospital front entrance facing the
Exterior. A fifth camera was placed on a wall above the access to the Occupational Therapy room.
Interviewed individuals
Patricia Field.
The interview commences at 10 am, and the chief investigator conducted it. The interview included the re cheque payments, HGBC wire transfer money, and the suspicious drug delivery.
Findings
The cameras placed in Patricia’s home found that after work each Friday, Patricia drives to an ATM in Windsor and uses two separate cards to withdraw a sum of cash for each card. Each Saturday, Patricia drives to the Windsor Shopping Centre, uses an ATM, and two tickets to withdraw more money and then goes to Windsor TAB, where she places bets in cash. Patricia also drives to Richmond shops on a Sunday morning, stopping at the ATM to use two cards to withdraw more money on her way home. At 6.00 pm on Sunday, 6 Th October, Patricia was then picked up by a black Mercedes limousine in her driveway and taken to Star Casino at Darling Harbor. Patricia was observed at the blackjack and roulette tables and appeared to be well known to staff. Over five hours, she was seen to bet $10,000. Overall she lost $6,000 and left the table with chips equal to $4,000, which she cashed in. She then returned home in the same black Mercedes limousine at 12.30 am. She repeated this trip to the Star Casino the following Sunday, leaving at 6.00 pm after the Serenity Valley staff event had finished.
At 6.00 pm on Monday, an International Fast ways courier van arrived at Patricia’s property and delivered ten sizeable brown cardboard boxes. After the courier departed, Patricia was seen moving each box one by one on a trolley to her Ford Transit van. At 5.00 am on Tuesday, the ‘Come and Get It’ coffee van, a Suzuki mobile commercial vehicle, Registered No. VCA987 drove into Patricia’s property and parked beside her house, where Patricia was waiting on the deck. Pedro, the coffee van vendor, got out of the van and walked over to where Patricia was standing. After a short conversation, Patricia was seen handing a large amount of cash to Pedro. The surveillance team reported Pedro arriving at 3.00 pm at the hospital and drove into the staff car park next to Patricia’s van. Patricia met him, and together, they removed the ten brown cardboard boxes seen earlier at Patricia’s property from Patricia’s trailer and moved them on a trolley to Patricia’s office. The hidden camera in Patricia’s office showed Patricia opening the locked Drug Cupboard and removing ten white cardboard boxes. Over a half-hour period, both Patricia and Pedro removed bottles from the ten white boxes and replaced them with bottles from the brown cupboard boxes. The surveillance team followed Pedro’s van to the International Freight Terminal at Mascot. Pedro was observed delivering the ten brown cardboard boxes at the Terminal. Callum King, a surveillance operative, watched and took photographs of Pedro organizing express postage with tracking to Chengdu, China.
On Tuesday, 15th October, the investigation team received the results of the MIC analysis of the HGBC Global wire banking transfer found in Patricia Field’s office bin. The study produced an interpretation of a Discolor pattern. The presentation identified a Fuji Xerox Decolor printer, serial number 762345, dated 9.25 am 26th August 2019 (See Part 12B). The investigation proved that Patricia got full access to the Serenity Valley’s bank accounts and at the same time, act as the Director of Nursing and pseudo accountant. For at least four years, her fraudulent activity has been running without being known by anyone as she played around with accounting records and MYOB system.
Summary
This report reflects that Patricia Field, a head nurse at the serenity valley rehabilitation hospital, was responsible for the act of being the Director of Nursing and pseudo accountant. Besides, the past four years, her fraudulent activity has been running without being known by anyone as she played around with accounting records and MYOB system.
Impact of the serenity valley hospital
As a result of the actions by Patricia Field, the head nurse, there have been complaints from the outpatient services on the hospital delivery fund, the cost of the staff has risen, and patients have experienced adverse health reactions from a drug that Patricia would sell to the Chinese, giving the patients less effective medication.
Recommendations
As the chief of investigation, I would recommend for Michael Craglan, the CEO of serenity valley hospital, to keep a close watch on his staff. It is essential for the management to now their employees as well as their activities such as discussions. The CEO should also hire experts to do thorough research on the other employees about their finances, investments, and beware of who is spending more than they are earning and how they are getting the credits. This will help in ensuring that all the fraudsters in the serenity valley hospital are dealt with accordingly. The employees should also be educated on the types of fraud, as well as a consequence associated with it. Besides, employees should be encouraged to report any form of fraud that they suspect among their colleagues. The management of the hospital should also implement internal controls. The controls will help in safeguarding the assets of the company, ensure that the accounts of the organization are integrity controlled, and also have equipment to detect fraud and theft in the organization. Proper documentation of the organization’s activities is too crucial to ensure that cases of fraud do not take place.