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Press Release

Financial Consultant Pleads Guilty to Fraud, Theft of Pension Funds

For Immediate Release
U.S. Attorney's Office, District of Rhode Island

PROVIDENCE, R.I. – John M. Hairabet, Jr., 45, a former business associate and office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, pleaded guilty in federal court in Providence today to charges that he embezzled more than $700,000 dollars from bank accounts belonging to the medical firm and to an employee 401(k) pension fund.

Hairabet’s guilty plea to six counts of wire fraud, one count of pension fund theft and two counts of money laundering is announced by Acting United States Attorney Stephen G. Dambruch; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; and Susan A. Hensley, Regional Director, U.S. Department of Labor Employee Benefits Security Administration.

Appearing before U.S. District Court Judge John J. McConnell, Jr., Hairabet admitted to the court that between October 2007 and August 12, 2013, in his capacity as an independent contractor bookkeeper and office manager of New England Anesthesiologists, and through his management consulting firm, Anesthesia Management Consultants, he embezzled $587,218.36 from bank accounts belonging to New England Anesthesiologists. Hairabet also admitted that he embezzled $120,313 in employee elective deferrals that were to be deposited into an employee 401 (k) pension fund. 

Hairabet is scheduled to be sentenced on November 30, 2017. Wire fraud is punishable by up to 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.

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

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

 

 

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Contact

Jim Martin (401) 709-5357
email: USARI.Media@usdoj.gov
on Twitter @USAO_RI

Updated September 14, 2017

Topic
Financial Fraud
Press Release Number: 17-110