08/28/2007
Oregon Resident Pleads Guilty to Money Laundering Relative to Embezzling from a Portland Nursing Facility
Over $927,000 was diverted to a bank account set up by the defendant
Portland, Ore. - Janet Toler, 66, pled guilty this week to money laundering relative to embezzling from a Portland nursing facility. The amount of the funds embezzled was in excess of $900,000. The defendant is ordered to appear for sentencing on November 5, 2007.The charge to which Toler pled guilty carries a maximum sentence of 10 years in prison and a maximum fine of $250,000.
According to the Indictment, Reedwood Extended Care Center had been in business since 1964 as a skilled nursing facility providing nursing care to the elderly. Toler was hired by Reedwood Extended Care Center, located in Portland, Oregon, on March 18, 1997, as an accounts receivable clerk. She worked there until November 23, 2005. Toler’s duties included receiving patient payments, preparing deposit slips and depositing the funds into Reedwood Extended Care Center’s business checking account.
The Indictment alleged that in February of 2001, Toler set up an Oregon corporation called “Reedwood.” Reedwood’s principal place of business was registered to Toler’s home address. Toler was the only registrant listed. Also in February of 2001, Toler opened a checking account in Oregon under the name of “Janet R. Toler, dba: Reedwood.” She was the only signor on the account. Between February of 2001 and June of 2005, Toler deposited checks that patients wrote for their care at Reedwood Extended Care Center into this bank account, which she controlled. Toler manipulated the accounting records of Reedwood Extended Care Center so that the missing funds would go unnoticed. After depositing the monies into the Reedwood account, Toler used the funds to purchase personal items.
As a result of Toler’s embezzlement of the patient payments, which occurred between 2002 and 2005, Reedwood Extended Care Center suffered significant financial problems, limiting their ability to provide services and eventually resulting in the business being sold.
"Law enforcement will always be there to protect the most vulnerable among us," said Kenneth J. Hines, IRS Special Agent in Charge of the Pacific Northwest. "This includes prosecuting people who would steal money needed by both those who operate nursing homes and those who reside in them."
As part of the plea agreement, Toler agreed to forfeit two vehicles, a utility trailer, two ATVs, and a bank account with over $11,000. She agreed to make full restitution in the amount of $927,385.74.
The Internal Revenue Service – Criminal Investigation and the Gresham Police Department joined forces to investigate this case. The case was prosecuted by Assistant United States Attorney Amy Potter.
