A former payroll worker for Yale New Haven Health pleaded guilty in federal court Wednesday to embezzling more than $116,260 from the health system.
Lorita Fair, 51, of Rock Hill, S.C., formerly a New Haven resident, entered the plea to one count of theft in connection with health care, in a proceeding before U.S. District Court Judge Kari A. Dooley in Bridgeport.
Fair, who is scheduled to be sentenced July 27, could face up to 10 years in prison. She remains free on $50,000 bond pending her sentencing.
According to the U.S. Attorney’s office, Fair has agreed to make full restitution to Yale New Haven Health.
The health system has roughly 30,000 employees and includes Yale New Haven Hospital, Bridgeport Hospital, Lawrence+Memorial Hospital in New London, Greenwich Hospital and Westerly Hospital in Rhode Island.
Fair started working at the system’s payroll department as a temporary employee in January 2020, then was hired to be a full-time payroll processing associate in May 2020, documents show.
Federal prosecutors said Fair embezzled the money by creating phony entries in the payroll system, causing her and two other individuals to receive fraudulent payments via direct deposit into their personal bank accounts. In some cases, she made the fraudulent entries directly into the online system, while in others, she manually added lines to a spreadsheet of payroll payments after the spreadsheet had already been reviewed and approved.
The two other individuals, who prosecutors have not yet identified, kicked back a portion of the fraudulent payroll funds to Fair, according to the U.S. Attorney’s office.
The funds were embezzled between June and December 2020.
The Federal Bureau of Investigation is handling the ongoing probe, with assistance from the health system. Assistant U.S. Attorney David J. Sheldon is prosecuting the case.
Yale New Haven Health spokeswoman Dana Marnane said it uncovered the embezzlement during normal auditing processes in February 2021 and turned the matter over to the FBI.
“This behavior is absolutely inconsistent with our mission and values, and we appreciate the support of law enforcement in bringing this case to its rightful conclusion,” Marnane said via email Thursday.
Fair’s defense attorney, Robert M. Frost Jr. of New Haven, did not immediately respond to a request for comment on the case.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
