Former Grady official indicted on embezzlement charges

A former Grady Memorial Hospital administrator has been indicted on charges of embezzling more than $450,000 in public funds, U.S. Attorney Sally Yates announced Wednesday.

Donald Thomas, the hospital’s former assistant controller, is accused of using his position to issue checks to terminated employees for vacation time and severance pay. Thomas directed those checks to himself, the indictment said.

“Because Grady relies on federal funding to provide medical care to those who cannot afford it, money embezzled from Grady cheats both Grady patients and taxpayers,” Yates said in a news release.

The FBI led the investigation of Thomas, who was employed at the hospital from 1994 until 2011.

The scheme came to light after a complaint from a former employee who expressed concern that her 2011 W-2 tax form indicated a larger amount of compensation from Grady than she had actually earned or received.

The investigation showed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas. At least 20 former Grady employees received inaccurate tax forms as a result of Thomas’ alleged crimes, Yates said.