Designer Jailed For 6 Years In HHC Ripoff

A graphic designer who tried to defraud the Health and Hospitals Corporation of nearly $4 million was sentenced to six years in prison Feb. 6.

Donald Chabus, who was employed on a freelance basis by HHC from 1999 through 2004, pleaded guilty last March to masterminding a scheme in which he paid an HHC supervisor, Ronald Maiorana, $700,000 in bribes to approve fraudulent invoices. That allowed Mr. Chabus to collect $3.9 million more than he was entitled to from HHC.

The scheme involved false claims by several printing companies that they had performed services and were entitled to payment. Most of the money that HHC paid actually wound up going to Mr. Chabus. He has been ordered to pay the full amount in restitution under the sentence imposed by U.S. District Judge Stephen C. Robinson.

Mr. Maiorana pleaded guilty in July 2005 to several fraud-related counts and to stealing from a program receiving Federal funds. He is awaiting sentencing, U.S. Attorney Michael J. Garcia noted.