Anaheim Memorial Fires Hospital’s Chief Executive

Peter Gray was fired as chief executive officer of Anaheim Memorial Hospital after an internal audit uncovered “apparent misappropriation of corporate funds,” the hospital announced Wednesday.

A bank sued Gray and others last week, alleging that Gray had embezzled $633,355 in hospital money by laundering it through two financial institutions and had used some of it to buy a Yorba Linda home.

The board of directors of the nonprofit, community-supported hospital fired Gray at a special meeting Tuesday night, according to Katherine Dopler, director of public relations for the hospital.

“All evidence presented to the board related solely to the activities of Gray,” according to a statement circulated to hospital staff Wednesday afternoon. “There is no evidence of wrongdoing on the part of any other employee or other person connected with Anaheim Memorial Hospital.”

Evidence Examined

The memo stated that Board Chairman Glenn P. Fry revealed that Gray was fired immediately “after the board had examined evidence uncovered by an internal audit of apparent misappropriation of corporate funds.”

“The board further determined that the financial condition of the hospital is sound and has in no way been impaired. The funds in question are not operational funds from patient payments, nor are they donations from community supporters or employee benefit funds,” according to the statement.

The board memo said that the investigation is continuing and that “the matter has been referred to legal counsel and other appropriate authorities.”

Anaheim Police Sgt. Gerald Stec confirmed Wednesday that the forgery and fraud detail is investigating. Stec said the inquiry has just begun and declined other comment.

Paul M. O’Neill, a retired president of the hospital, was named interim chief executive officer by the board.