News : Former CEO Sentenced to more than 3 years in prison

In a press release published by the United States Attorney's Office, Eastern District of California, Euan David MacGregor aka David Joseph Bean, 54, of Iowa City and later Vinton, Iowa was "sentenced by Senior Judge John A. Mendez to 41 months in prison and 36 months of supervised release for defrauding his former employer out of over $3.2 million, Acting United States Attorney Michele Beckwith announced. In addition, MacGregor was ordered to pay $3,217,456.41 in restitution to his victim."At the time of his arrest, in August of 2024 he was working at Virginia Gay Hospital as the new CEO. He was immediately let go from VGH.

"According to court documents, between approximately November 2014 to January 2020, Euan MacGregor, then known as David Bean, used his position as a Chief Administrative Officer to execute a scheme to defraud his employer.

According to court documents, MacGregor defrauded his former employer in two ways. First, he diverted at least 122 checks made payable to his employer to bank accounts that he controlled. MacGregor did this by creating a shell corporation that had a business name similar to the name of his employer and depositing the checks into bank accounts that he opened in the name of the shell corporation. MacGregor then presented false financial information to the company's president and shareholders, causing them to believe they had received the monies he diverted. In addition, MacGregor falsely represented to his employer that he was outsourcing his employer's bookkeeping work to a third party, a company named Essential Business Services. In reality, Essential Business Services was another shell company that MacGregor created and controlled. MacGregor's false representations caused his employer to pay Essential Business Services thousands of dollars each month for bookkeeping services that it did not perform. MacGregor used the money he fraudulently obtained to pay for personal expenses for him and his family, including mortgage payments, the payment of credit cards, educational expenses, travel, and the purchase or lease of vehicles.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger who prosecuted the case."