PROVIDENCE, R.I. – A trusted financial advisor turned thief, John M. Hairabet, Jr., 45, is headed to federal prison after being sentenced to 37 months for a brazen scheme that ripped off a local medical firm and its employees’ retirement savings. Hairabet, the former office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, pleaded guilty last year and faced the music in federal court today.
The scope of Hairabet’s greed is staggering. Between October 2007 and August 12, 2013, he systematically siphoned off $587,218.36 from New England Anesthesiologists’ bank accounts. But he didn’t stop there. He also pilfered $120,313 in employee 401(k) contributions – money hardworking individuals had set aside for their future. The total restitution owed to victims, including those robbed of their pensions, is still being calculated by the court.
U.S. District Court Judge John J. McConnell, Jr. handed down the 37-month sentence, falling within the 37-46 month range recommended by federal sentencing guidelines. In addition to imprisonment, Hairabet will serve three years of supervised release upon completion of his sentence. Prosecutors, Assistant U.S. Attorneys Ronald R. Gendron and Richard W. Rose, successfully argued for the 37-month term.
Hairabet’s downfall began with a guilty plea on July 20, 2017, to six counts of wire fraud, one count of pension fund theft, and two counts of money laundering. The investigation, a collaborative effort between the U.S. Secret Service, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration, exposed a pattern of deception and abuse of trust. Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service, highlighted the agency’s commitment to tackling financial crimes.
The case serves as a stark reminder that even those in positions of financial authority are not above the law. Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation, emphasized the importance of protecting retirement funds, while Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor Employee Benefits Security Administration, underscored the agency’s dedication to safeguarding employee benefits. This wasn’t just about money; it was about betraying the trust of a workforce and jeopardizing their financial security.
United States Attorney Stephen G. Dambruch announced the sentencing, emphasizing the government’s unwavering pursuit of justice in financial crimes. The investigation and prosecution demonstrate a coordinated effort to hold accountable those who exploit their positions for personal gain, leaving a trail of financial ruin in their wake. The victims in this case now await the determination of restitution, hoping to recover at least a portion of what was stolen.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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