LAUREL COUNTY, Ky. — Perry “Chad” Vaughn is finding out the hard way that there are no shortcuts to the high life.
The former Laurel County resident and University of Louisville executive was arraigned Wednesday on a seven-count federal indictment charging him with theft, bribery, money laundering, mail fraud and tax fraud.
Vaughn, 36, of Sellersburg, Ind., faces up to 55 years in prison, a 16-year term of supervised release and a $1,250,000 fine.
Vaughn worked at the University of Louisville as an accountant before being promoted to executive director of Family and Geriatric Medicine (DFGM) at the campus medical school in 2007. He was also the business manager for five of the DFGM’s affiliated private practice groups.
Suspicions about Vaughn’s spending habits arose as early as October 2012 when a co-worker sent an email to Louisville’s audit services. The university began an investigation the following January.
In August of last year, it was discovered Vaughn was diverting contractual checks and patient payments between the DFGM and private practice groups before accessing them for personal use. Federal prosecutors obtained a temporary injunction on Aug. 30 which stopped Vaughn from spending any funds in work related bank accounts.
According to U.S. Attorney David J. Hale, Vaughn spent six years laundering $2,809,489 for his own benefit and making a large amount of misrepresentations to the university’s Audit Services in the process. This included providing false bank statements to conceal the nature of his alleged theft.
Vaughn, a North Laurel High School graduate, allegedly used the stolen funds to bankroll such expenses as nine luxury vehicles — totaling $475,000 — various real estate, a $9,000 bracelet, trips to Grand Turks and Caicos and even a casino in Las Vegas.
In September, U.S. District Judge John G. Heyburn II granted a motion for a temporary restraining order between Vaughn and his assets, prohibiting their transfer, sale, concealment or disposal.
Vaughn’s trial date is set for June 3.