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WATER VALLEY – A former Yalobusha General Hospital employee was also indicted by the Grand Jury in the Second Judicial District for embezzlement. Katherine Rotenberry Brown is alleged to have embezzled $72,632.79 from Yalobusha General Hospital by issuing and cashing checks addressed to multiple hospital employees. Hospital employees filed a complaint at the Auditor’s office after accounting discrepancies were identified.
“Thank you to the agents who uncovered this fraud from a rural hospital,” State Auditor Shad White reported. “We are dedicated to putting a stop to schemes like this and making sure public money reaches those who should benefit – in this case, patients and hospital employees.”
Brown was arrested at her home in Lafayette County Monday morning and booked in the Yalobusha County Detention Center. She bonded out later that afternoon.
If convicted, she faces up to 20 years in prison and $25,000 in fines. The indictment is not an indication of guilt, but instead means there was probable cause to charge her with the crime. The case will be prosecuted by District Attorney John Champion’s office.
The auditor’s office issued a $100,966.03 demand letter to Brown, which also includes investigative expenses and interest. She is liable for the full amount of the demand in addition to the criminal charge.
Suspected fraud can be reported to the Auditor’s office online any time by clicking the red “Report Fraud” button at www.osa.ms.gov or via telephone hours during normal business hours by calling (800) 321-1275.