2020-499 Executed Consent Opinion

Ethics Board Docket No. 2020-499 Page 3 of 8 7. From 2017 through 2019,the Respondent,in his capacity as the Hospital's Chief Financial Officer,used electronic Automatic Clearing House transfers ("ACH transfers")to move Hospital funds to which he was not entitled into his personal bank accounts; these included transfers between Much 2016 through September 2019 of at least $481,442.76 from the Hospital's bond sinking fund,a Region's bank account the Hospital had established to pay off debt incurred when it remodeled an office building and built residential buildings, to checking and savings accounts the Respondent held at La Capitol Federal Credit Union. 8. To accomplish this end and avoid detection, the Respondent masked the unauthorized transfers as payroll deductions and deposits; shifted the public money from one Hospital account to another before depositing it in his personal accounts;altered the Hospital's financial documents, which included deleting ACH transfers on copies of the Hospital's bank statements, and underreported the Hospital's revenue and receivables. 9. Following his criminal guilty plea to one count of wire fraud in United States District Court, Western District of Louisiana, Mr. Calloway was sentenced on June 16, 2023, to twenty- four months in federal prison,with three years of supervised probation following his release. Mr. Calloway was also ordered to pay restitution in the amount of$742,602.18 to the Hospital and $150,000.00 to Hanover Insurance. Mr. Calloway's monthly restitution payments will begin upon his release. The Court determined that Mr. Calloway did not have the financial ability to pay interest and/or penalties on the restitution amount.