John M. Hairabet, Jr., Financial Consultant Pleads Guilty to Fraud, Rhode Island 2017

A former business associate and office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, has pleaded guilty to a string of financial crimes.

John M. Hairabet, Jr., 45, pleaded guilty in federal court in Providence, Rhode Island, to six counts of wire fraud, one count of pension fund theft, and two counts of money laundering. The charges stem from his embezzlement of over $700,000 from bank accounts belonging to New England Anesthesiologists and an employee 401(k) pension fund.

According to the U.S. Attorney's Office, Hairabet embezzled the funds over a period of six years, between October 2007 and August 12, 2013, while working as an independent contractor bookkeeper and office manager for New England Anesthesiologists, and through his management consulting firm, Anesthesia Management Consultants.

Prosecutors say that Hairabet embezzled $587,218.36 from bank accounts belonging to New England Anesthesiologists, and $120,313 in employee elective deferrals that were to be deposited into an employee 401(k) pension fund.

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

Wire fraud carries a maximum sentence of 20 years imprisonment and a fine of up to $250,000. Money laundering is punishable by up to 10 years imprisonment and a fine of up to $250,000 or twice the amount of criminally deprived property. Pension theft is punishable by up to 5 years imprisonment and a fine of up to $250,000.

Hairabet is scheduled to be sentenced on November 30, 2017.

The case is being prosecuted by Assistant U.S. Attorneys Ronald R. Gendron and Richard W. Rose.

Source: https://www.justice.gov/usao-ri/pr/financial-consultant-pleads-guilty-fraud-theft-pension-funds