UCLA to Fire Top Manager Linked to Fraud Probe : Investigation: Audit shows a radiology department administrator approved $1.2 million in excessive fees. But there is no evidence that money went to him.

UCLA announced Wednesday that it will fire a top administrator in its department of radiological sciences for approving at least $1.2 million in “inappropriate” and excessive payments to temporary employment registries with which he had hidden business ties.

Officials said an internal audit, which has been conducted with the FBI, revealed that James G. Campbell, the radiology department’s former administrative officer, authorized payments for at least three temporary employees who could not have performed the work claimed by the outside employment firms.

Campbell also approved some payments for employees from those registries--Radiology Registry Agency Inc. and 21st Services Corp.--who did perform the work but were paid at twice the regular rate, UCLA officials said.

In all, the alleged scheme defrauded UCLA Medical Center and the nearby West Los Angeles Veterans Administration hospital of $1.2 million to $1.3 million--the largest fraud ever at the medical school--but there isn’t any evidence that money went to Campbell personally, said Raymond Eden, dean of the UCLA School of Medicine.

Investigators have found that Campbell had a “close relationship with the registries,” although his name does not appear on any corporate records, Eden said.

“There is some evidence that they met together, that there were meetings between the two registries and Mr. Campbell, mostly dinner or luncheon meetings,” he said.

Campbell could not be reached for comment Wednesday. In a short interview with The Times recently, he acknowledged having been contacted by an FBI agent investigating alleged fraud in the radiological sciences department.

As the top administrator, Campbell was paid more than $91,000 a year and had control of planning and operations, including final approval on payments to registries. These are specialized employment services that provide temporary help, such as X-ray technicians, to cover for vacations, leaves and periods of peak demand for radiological services.

The radiological sciences department performs X-rays, bone scans, magnetic resonance imaging and other procedures for the UCLA Medical Center and, on occasion, for the West Los Angeles Veterans Administration Medical Center. It has an annual budget of $22 million.

Campbell’s position was eliminated and he was placed on paid leave March 30, UCLA officials said. The leave was scheduled to expire June 5, when Campbell would be let go but remain eligible to collect another six months pay as severance, they added.

School officials had previously maintained that Campbell was terminated because of administrative restructuring. On Wednesday, however, they informed him about the evidence uncovered by auditors and said they were terminating him “with cause,” a move that would force him to forfeit the severance pay.

The investigation into the radiological sciences department began in October, 1992. It intensified after Dr. Richard J. Steckel became chairman of the radiology department Jan. 1, in part because of rumors about Campbell’s alleged role in the improper payments, Eden said.

In March, school officials informed federal authorities about the probe because some of the questionable payments were made with federal funds used to pay for radiological services at the VA hospital.

The Times reported in April that the FBI was investigating allegations of embezzlement by a department employee.

Eden said it appears the fraud may have “gone on from July of 1990 until recently.” The department has used Radiology Registry Agency since then and added 21st Services Corp. in July 1992. Overall, the registries have been paid $5 million.

So far, the probe has uncovered one case in which a man listed on a registry invoice as a radiologist is actually a dentist, so he could not have performed the services approved by Campbell, Eden said.

“There was another person who was a Ph.D who was listed as a physician, and he couldn’t provide radiological services,” he added. “There were also some charges for radiological technologists that were excessive charges, that shouldn’t have happened. . . . We’re looking at as much as twice the rate that you usually pay.”

Corporate records do not show Campbell as an officer of either registry, but the files of fictitious business names recorded with Los Angeles County list Campbell as having a business relationship with Stephen P. Walta, an official of Radiology Registry Agency Inc. Walta and Campbell are co-owners of a firm called CRE of Southern California, according to records.

Eden said Wednesday that UCLA was unaware of that connection. He said that Walta manages the other registry, 21st Services Corp., and UCLA records show he is being paid nearly $23 an hour as an administrative assistant at the VA hospital and was hired through a third registry that has not been implicated by the probe.

Reached at work recently, Walta declined to comment on his business or the investigation.

Steckel announced Wednesday that the department would stop using the two registries in question and officials said the probe was continuing.