Ala. Man Pleads Guilty in Hospital Fraud

By: The Associated Press
By: The Associated Press

BIRMINGHAM, Ala. (AP) -- Federal prosecutors say a man has agreed to plead guilty to defrauding Children's of Alabama hospital of more than $425,000 in a scam involving computer printer cartridges.

Authorities say 36-year-old John David Nichols of Hueytown agreed to the plea in a document filed Wednesday in Birmingham.

Documents show Nichols worked as a service technician at the hospital for a contractor for two years ending in October 2011. He admitted defrauding the hospital of $426,986 by charging it for printer cartridges he sold to another company.

Prosecutors say Nichols continued the fraud even after he went to another company by ordering cartridges for the hospital and selling them on his own. He also sold equipment stolen from the hospital.
Authorities say Nichols could face up to 20 years in prison.

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