Find State Health Dept. Supervisors Lax In Allowing $62G Ripoff

State Inspector General Joseph Fisch has concluded that state Department of Health supervisors failed to monitor program finances, despite warning signals, after a contract worker embezzled more than $62,000 in funds earmarked for critically ill patients.

In February 2008, the supervisors were told that the state’s cystic fibrosis program had unexpectedly run out of cash, but Erin Sherman-Rohl’s immediate supervisors approved her claims without examining back-up documentation. Three supervisors— DOH’s Adult Cystic Fibrosis Assistance Program Assistant Director Elizabeth Berberian, Bureau Director David Hoffman, and Associate Director of the Division of Chronic Disease Prevention and Adult Health Thomas Blake, were disciplined by DOH for dereliction of duty.

‘Should Have Been Detected’

“This was a contemptible crime that should have been detected,” Inspector General Fisch said in a statement.

DOH has made several operational and personnel changes because of this investigation. Ms. Berberian and Mr. Hoffman have been transferred to other assignments within DOH. A new supervisor has been assigned to the cystic fibrosis program to establish more-effective monitoring and controls. The Inspector General recommended that the new oversight include a periodic audit of the program’s entire claims review, approval, and payment procedures, and that DOH provide the Inspector General with a detailed progress report on these actions.

Ms. Sherman-Rohl pleaded guilty to grand larceny in Albany County Court on Sept. 3 for stealing more than 10 percent of the cystic fibrosis program’s annual budget with a friend, Sheldon Jacobson. Ms. Sherman Rohl created phony patient claims for Mr. Jacobson and approved 18 payments from April 2007 to July 2008. Mr. Jacobson cashed the checks and split the money with Ms. Sherman-Rohl. Both owed tens of thousands of dollars in personal and credit card debt.

Mr. Jacobson pleaded guilty to grand larceny and was sentenced on Sept. 11 in Albany County Court to one to three years in prison. Ms. Sherman Rohl faces up to 4 years in prison at her sentencing, which is scheduled for October. Her crimes were exposed just before she left the contractor, Health Research Inc., for a job at the state Office of Temporary and Disability Assistance. She was later fired.