Financial management consultant indicted for embezzling more than $1M from medical firm

PROVIDENCE – A financial management consultant has been indicted for allegedly embezzling more than $1 million in bank account funds and from employee 401(k) pension fund contributions from New England Anesthesiologists Inc.

According to a press release from U.S. Attorney Peter F. Neronha, a federal grand jury on Wednesday returned an 11-count indictment that charged John M. Hairabet Jr., 43, a former business associate and office manager of New England Anesthesiologists and president of Anesthesia Management Consultants LLC, with seven counts of wire fraud, two counts of money laundering and one count each of pension theft and aggravated identity theft.

The indictment alleges that between Nov. 13, 2007, and Jan. 31, 2013, Hairabet, who, as an independent contractor bookkeeper and office manager of New England Anesthesiologists, and through his management consulting firm, Anesthesia Management Consultants, stole the identity of the owner of New England Anesthesiologists and then used that stolen identity while signing bank documents to convert more than $500,000 of New England Anesthesiologists funds for his own personal use.

The indictment also alleges that between Jan. 1, 2012, and Dec. 31, 2012, that Hairabet collected several hundreds of thousands of dollars of 401(K) retirement fund employee contributions for his own use.

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A wire fraud conviction carries a penalty of up to 30 years imprisonment and $1 million fine.

Assistant U.S. Attorney Richard W. Rose is prosecuting the case.

The matter was investigated by the IRS Criminal Investigation, the U.S. Secret Service and the U.S. Department of Labor, Employee Benefits Security Administration.

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