Pulaski County officials said Wednesday that approximately $1.9 million in public funds were diverted through suspected fraud involving payments to the medical services provider for the county jail.
The payments were intended for Turn Key Health Clinics LLC, but a person posing as the company’s accounts receivable representative contacted the Pulaski County Sheriff’s Office and directed employees to change the payment method and banking information. The county said the suspected fraud continued for several months before it was discovered.
The sheriff’s office was contacted on June 19 by the person who claimed to represent Turn Key Health Clinics. After the payment instructions were changed, county funds were sent to accounts controlled by the suspected fraudsters rather than to the jail’s medical provider.
How the payments were discovered
The suspected fraud came to light last week when a representative of Turn Key Health Clinics told the sheriff’s office that the company had not received payments for several months. The county’s information technology team then reviewed the original email requesting the banking change and determined that it appeared to be fraudulent.
County officials recovered the most recent payment, totaling $126,344.87, after the problem was identified. The county said the remaining diverted funds were part of an ongoing investigation.
- Approximately $1.9 million in county funds were diverted.
- The payments were intended for Turn Key Health Clinics, the jail’s medical services provider.
- The county recovered the most recent payment of $126,344.87.
- The Pulaski County Sheriff’s Office notified the FBI.
The sheriff’s office said the investigation is continuing and that the FBI has been notified. Officials described the incident as an example of financial fraud carried out through digital communications and urged employees and organizations to independently verify requests involving bank accounts, payment methods or other financial instructions.
“Modern scammers are increasingly clever, deceptive, and sophisticated in how they manipulate digital communications to target organizations, businesses, and individuals. We strongly encourage everyone to exercise extreme vigilance when receiving phone calls, text messages, or emails that discuss financial matters, banking changes, or payment instructions. Always independently verify any requested changes through trusted, direct contact channels before taking action.”
The warning came from the Pulaski County Sheriff’s Office in a release about the county’s financial loss. The sheriff’s office said the suspected fraud was identified through the provider’s notice that payments had stopped and the subsequent review by the county’s information technology staff.
