A former Certified Public Accountant with Children's Healthcare ofAtlanta was sentenced to four years in federal prison Tuesday following his conviction in a money laundering conspiracy.
Ronald Deabler, 66, was found guilty of conspiring to embezzle $5.3 million from the children's hospital, and was convicted in February.
Deabler has been sentenced to four years in prison followed by two years of supervised release. He has also been ordered to pay a restitution of $682,860, according to the U.S. Attorney's Office for the Northern District of Georgia.
Here's what to know about the case.
Hacker poses as furniture company
According to US. Attorney Theodore S. Hertzberg, an unknown hacker "gained access to the email system of a commercial furniture vendor" used by the hospital in June
2023.
The hacker pretended to be one of the furniture company's employees and changed the vendor's bank account on file with Children's. The account, however, actually belonged to Deabler, and the hacker told the hospital to wire $5.3 million into the account. Deabler worked as a business owner and former CPA, and had knowledge of the banking system, according to the attorney's office.
Deabler struck a deal with the hacker to distribute stolen money at a price.
"Shortly after the $5.3 million was deposited into his account, Deabler opened a second bank account into which he attempted to move the entire proceeds of the fraud. When the bank prevented him from doing so, Deabler instead transferred more than $1 million to the new account," the attorney's office said. "Deabler then converted approximately $3.5 million of the fraud proceeds into four cashier's checks that he promptly mailed to individuals and entities as directed by the hacker."
Children's Healthcare of Atlanta caught the fraud a few days later, and when the hospital notified the bank the funds were able to be traced back to Deabler's account. Ultimately, $4 million of the stolen money was traced and recovered, but the remaining $1.3 was never found.
What is Children's Healthcare of Atlanta?
Children's Healthcare of Atlanta is a non-profit pediatric healthcare system in Georgia that specializes in people aged 0 to 21. The system includes the Arthur M. Blank Hospital, the Scottish Rite Hospital, the Hughes Spalding Hospital and various specialized centers in and around Atlanta.
The system offers more than 60 specialties from cardiology to oncology to neurology, and treats more than 1.2 million patients a year across all locations.
"Criminals who steal from a children's hospital are not just committing financial fraud — they are exploiting an institution that exists to care for vulnerable children and support their families," Federal Bureau of Investigation Special Agent in Charge, Marlo Graham, said in a statement. "Deabler chose to use his financial expertise to help conceal and distribute millions of dollars stolen from Children's Healthcare of Atlanta. This sentence demonstrates that anyone who profits from these schemes will face serious consequences."
Irene Wright is the Atlanta Connect reporter with USA Today’s Deep South Connect team. Find her on X @IreneEWright or email her at ismith@usatodayco.com.
This article originally appeared on USA TODAY: Former CPA embezzled $5.3 million from Children's Healthcare of Atlanta
