Local News

September 10, 2013

Former Laurel resident accused of embezzling $2M from U of L

Perry “Chad” Vaughn wrote checks to himself

LAUREL COUNTY, Ky. — A former Laurel County resident is being investigated by the Internal Revenue Service for swindling $2 million from the University of Louisville.

Perry “Chad” Vaughn oversaw the business affairs as former executive director of a medical department at the university. According to an IRS criminal investigator, Vaughn is accused of writing checks to himself from several medical practices linked to the school for amounts possibly exceeding $2 million over the last six years.

Vaughn oversaw the business affairs for the Department of Family & Geriatric Medicine and served as a bookkeeper. According to the IRS affidavit from criminal investigator Robert Masterson, Vaughn cut at least 25 checks to himself for a total of $703,936 from the school and five affiliated practices in 2012 and 2013. Masterson estimated that Vaughn, who had been employed at the school since 2002, may have taken more than $2 million for personal expenses by setting up bank accounts and moving money around over the last decade.

Vaughn allegedly used the money to pay for personal expenses, including purchasing homes and cars are well as transferring money to other accounts.

A call to the University of Louisville confirmed that Vaughn was no longer employed by the school, having been fired Wednesday morning, but the school refused to make any further comments.

Federal prosecutors obtained a temporary injunction on Aug. 30 which stopped Vaughn from spending any funds in several accounts linked to his work at the university.

The investigation started after a co-worker sent an email to the university’s audit services in October 2012 with concerns about Vaughn’s spending habits. In January of this year the school began and investigation. The co-worker noted that Vaughn seemed to be spending above his salary with the school, including trips to Grand Turks and Caicos and multiple trips to Las Vegas. The investigation showed that Vaughn used the money to lease or buy cars including a Mercedes, Lexus and BMW, to purchase homes in Louisville and Floyd County, Indiana, where he currently lives.

In an interview with investigators on Aug. 21 Vaughn owned up to issuing himself 25 fraudulent checks for $703,000 and that his actions dated to at least 2007, according to Masterson.

Vaughn is scheduled to return to court today as prosecutors seek to extend the injunction on the expenditure of any more funds. As of last Wednesday morning he had not been criminally charged.



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