John Paul Funes, Embezzlement, Louisiana 2019

BATON ROUGE, LA – John Paul Funes, the former President of the Our Lady of the Lake Foundation, is headed to federal prison after admitting to a brazen scheme to steal over $796,000 from the non-profit that supports Our Lady of the Lake Regional Medical Center. Funes, who wielded authority over the Foundation’s finances, used his position to approve fraudulent payment vouchers, diverting funds for personal gain.

The scheme, detailed in court documents, involved submitting false vouchers claiming funds were needed for “time-sensitive outbound patient transports” from Our Lady of the Lake Children’s Hospital. In reality, Funes repeatedly used the charter flight services for his own benefit, keeping the Foundation in the dark. He then directed individuals receiving fraudulent payments to funnel the majority of the money back to him via check or money order, meticulously concealing the proceeds of his crime.

When an internal audit was launched in August 2018, Funes didn’t stop. He doubled down, frantically creating false documents in a desperate attempt to cover his tracks. But the scheme unraveled, leading to a full investigation by the U.S. Secret Service, the FBI, and the IRS-Criminal Investigation Division. The investigation revealed a total loss of $796,309 attributable to Funes’s fraudulent activity.

U.S. Attorney Brandon J. Fremin minced no words, stating, “This defendant blatantly violated the trust bestowed upon him by the Our Lady of the Lake Foundation and people they serve by stealing valuable resources from those who needed it most.” He emphasized that the conviction should serve as a warning to anyone tempted to abuse a position of trust. Funes was sentenced to federal prison, followed by two years of supervised release.

In addition to his prison sentence, Funes has already forfeited $796,309 and was ordered to pay an additional $50,000 fine. Tara McLeese, Resident Agent in Charge of the U.S. Secret Service in Baton Rouge, hailed the sentencing as a result of “outstanding collaborative effort” between federal agencies. Bryan A. Vorndran, FBI New Orleans Special Agent in Charge, added that Funes “betrayed Our Lady of the Lake Foundation” by stealing funds intended for sick and injured children.

The IRS-Criminal Investigation Division confirmed that Funes abused his CEO position to siphon funds from the charity. The case serves as a stark reminder that those who exploit charitable organizations for personal enrichment will be aggressively pursued and held accountable. The full cooperation of the Our Lady of the Lake Foundation was crucial to the successful outcome of this investigation.

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