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Ex-health foundation COO admits to $4.3 million embezzlement plan

Charmaine Gatlin, 52, directed funds to herself and her relatives rather than to the Foundation, using funds to pay personal expenses.
By Jeff Lagasse , Editor
L:ady Justice holding her scales

Photo: SimpleImages/Getty Images

Charmaine Gatlin, the former chief operating officer of Jackson Health Foundation, has pleaded guilty to embezzling upward of $4.3 million from the nonprofit by submitting false invoices and taking kickbacks.

Gatlin, 52, served as the Foundation’s COO from 2014 through 2024, according to court documents. Jackson Health Foundation is the fundraising arm of Jackson Health System.

During her tenure, Gatlin drew a base salary ranging from $185,000 to $290,000. In pleading guilty, Gatlin admitted that she defrauded the Foundation out of at least $4.3 million by directing funds to herself, her relatives or unrelated entities, rather than to the Foundation or the health system. 

For example, Gatlin approved approximately $2 million in invoices from a Georgia-based audiovisual company for services that were never provided. In return, the vendor paid Gatlin $1 million in kickbacks, which she used in part to pay her personal credit card bill. 

Gatlin coached the vendor on how to falsify invoices, including billing for audiovisual services that had already been donated to the Foundation. The vendor, Yergan Jones, pleaded guilty to conspiracy to commit wire fraud in connection with the scheme.

Gatlin also directed a merchandise vendor to purchase luxury items for her from Louis Vuitton, Gucci and Apple in exchange for keeping the Foundation’s business. Gatlin further misused restricted donations, such as approving $55,101 in Foundation funds to purchase 10,000 “first aid kits” falsely labeled as “trauma burn giveaways” from the same vendor.

In another instance, Gatlin submitted a false invoice to cover the purchase of a rose gold-colored golf cart, which she had delivered to her Weston, Florida, home in September 2023.

A sentencing hearing is scheduled before U.S. District Judge Beth Bloom on Nov. 25. Gatlin faces a maximum penalty of 20 years in prison.

 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.