A state agency spokesperson said Larned (Kan.) State Hospital officials were not aware the hospital's former CFO was the focus of an internal federal investigation when he was hired, according to the San Francisco Chronicle.
David Fender joined Larned as CFO in 2015. The state psychiatry facility announced Mr. Fender's departure in August after launching an internal hospital audit.
According to a federal inspector general's report, investigators found Mr. Fender had potentially committed criminal violations by using his public office for private gain and for making false statements to the government. Mr. Fender has not been formally charged.