The former CEO of Virginia Gay Hospital, a privately operated, nonprofit rural hospital in Vinton, Iowa, pleaded guilty Aug. 20 to one count of wire fraud for embezzling more than $3.2 million from his former California employer, according to the Justice Department.
Euan MacGregor, formerly known as David Bean, 54, of Iowa City, Iowa, admitted to embezzling money from his former California employer between November 2014 and January 2020 while serving as chief administrative officer, court documents say, according to the department.
Prosecutors say Mr. MacGregor defrauded his former employer, which is identified in the documents as a company that "provided medical laboratory directorship and pathology services to hospitals and clinics and operated an independent lab." He diverted at least 122 checks payable to the employer into bank accounts he controlled, according to an Aug. 21 Justice Department news release.
"[He] did this by creating a shell corporation that had a business name similar to the name of his employer and depositing the checks into bank accounts that he opened in the name of the shell corporation," the release said. "MacGregor then presented false financial information to the company's president and shareholders causing them to believe they had received the monies he diverted."
Additionally, Mr. MacGregor established a fake company, Essential Business Services, to claim he outsourced bookkeeping, causing the employer to pay for services it was not providing, according to the Justice Department.
He reportedly used money from the fraud for personal expenses, including vehicles, credit card payments, mortgages, and family-related costs such as education and travel.
Mr. MacGregor faces a potential maximum sentence of 20 years in prison and a $250,000 fine.
Mr. MacGregor was named CEO of Virginia Gay Hospital in June. He succeeded Michele Schoonover, who retired.
In a statement shared with Vinton Today, Virginia Gay Hospital said Mr. MacGregor is no longer employed by the hospital. CFO Barry Dietsch and Chief Nursing Officer Tina Eden have been appointed as interim executive leaders until a new CEO is hired.
"Virginia Gay Hospital cannot comment further on this confidential personnel matter," the statement said. "We remain committed to providing quality health care services to the patients and communities that we serve."