Former Hospital General Counsel Pleads Guilty to Million Dollar Fraud and Money Laundering

PHILADELPHIA—Roosevelt Hairston Jr., 46,of Malvern, PA, pleaded guilty today to mail fraud, money laundering, and filing a false tax return stemming from his embezzlement of $1.7 million from the Children’s Hospital of Philadelphia, announced United States Attorney Zane David Memeger. A sentencing hearing is scheduled for October 13, 2011.

Hairston was employed in various senior positions at CHOP, including most recently as general counsel and executive vice president. Between 1999 and February 14, 2011, Hairston used dozens of false invoices he created for shell companies to steal from CHOP. Hairston was able to steal for so long because he occupied a position of trust at the hospital and because he engaged in extensive efforts to conceal and prolong the scheme. Hairston used the funds he stole from CHOP to live a lavish lifestyle, purchasing items such as real estate, a yacht with a captain, and high-end automobiles.

Hairston faces five to seven years in prison, restitution, and fines of up to $1 million.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Richard J. Zack and Paul Gray.