Financial management consultant pleads guilty to embezzling $700k

PROVIDENCE, R.I. (WPRI) — A former business associate and office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, pleaded guilty in federal court Thursday to embezzling more than $700,000 from medical firm bank accounts and an employee 401(k) pension fund.

According to the Department of Justice, John M. Hairabet, Jr. admitted that between October 2007 and Aug. 2013 he embezzled $587,218.36 from bank accounts belonging to New England Anesthesiologists and $120,313 in funds to be deposited into an employee 401(k) pension fund.

Hairabet, 45, pleaded guilty Thursday to six counts of wire fraud, two counts of money laundering and one count of pension fund theft.

The Department of Justice says wire fraud is punishable by up to 20 years of imprisonment with a fine up to $250,000, money laundering is punishable by up to 10 years of imprisonment with a fine up to $250,000 or twice the amount of critically deprived property, and pension theft is punishable by up to five years of imprisonment and a fine of up to $250,000.

Hairabet is scheduled to be sentenced Nov. 30.