Alan B. Gallas, 64, a recently disbarred lawyer, admitted Wednesday in U.S. District Court in Kansas City, Mo., that he embezzled more than $1.2 million from Kansas City-based St. Luke's Health System from 2009 to July 2015.
Mr. Gallas' firm collected past-due payments from patients for the hospital network. Money collected by the firm on behalf of St. Luke's was supposed to go into a trust account. However, Mr. Gallas would have employees but a hold on certain funds and then transfer them to the law firm's operating account, according to The Kansas City Star.
According to prosecutors, Mr. Gallas withheld 62 payments totaling $89,495 in 2009; 439 payments totaling $132,167 in 2010; and 613 payments totaling $79,776 in 2011. He kept more than $200,000 every year from 2012 through 2015.
Under Mr. Gallas' plea agreement, he is required to pay $1.2 million in restitution.
His sentencing is scheduled for Aug. 10, according to the report.
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