Indictment likely in probe

Indictment likely in probe

Internal audit finds financial violations in UCLA radiology

By Ben Gilmore

An FBI probe of UCLA’s radiological sciences department may
result in federal indictments of at least one former UCLA employee
for allegedly overbilling the university through temporary
employment agencies.

In addition, two other former employees may plead guilty to
criminal charges, said Joseph Mandel, vice chancellor of legal
affairs.

Now entering its final stages, the probe is the result of a
two-year internal audit of the department which found evidence of
financial impropriety involving payments to two outside temporary
employment agencies.

The department first discovered the alleged improprieties in
October 1992 while routinely reviewing purchase records, according
to the audit report.

Their inquiry showed that Beverly Robinson, then a buyer in
UCLA’s purchasing department, illegally favored two temporary
employment agencies, Radiological Registry Agency and 21st Services
Corporation., when hiring outside services.

Robinson opened large contracts with the two temporary agencies
with no competitive bidding, which is a violation of state law,
Mandel explained.

"Any contract involving the purchase of goods or services over
$50,000 must be opened up to competitive bidding," he said.

Auditing of the radiology department’s invoice records further
showed that the two agencies billed UCLA for services that could
not have been performed.

The overbilling by the agencies included charging UCLA for the
services of seven teenagers, ranging in age from 13 to 19, who were
listed on invoices as $26 per hour radiology technicians.

The F.B.I. has not yet definitely determined the extent of the
overbilling or if any UCLA employees profited from the
wrongdoings.

James Campbell, the former chief administrative officer for the
radiological sciences department, was found to be knowledgeable of
overbillings and to have close business ties to the two temporary
agencies.

As a result of the findings, UCLA last year dismissed Robinson,
Campbell and Benny Chow, who was the former chief financial officer
for the department

All three were unavailable for comment on the report.

The FBI, which is continuing the investigation, was notified in
March 1993 of the alleged wrongdoings when it was discovered that
federal funds were also misused.

Money from the West Los Angeles Veterans Administration Medical
Center was siphoned by the radiology department to pay the two
temporary agencies.

The relationship between the Veterans Administration hospital
and UCLA radiology was initiated by Dr. Hooshang Kangarloo, then
chairman of the department. The audit report found Kangarloo to be
knowledgeable of Campbell’s and Chow’s ties to the temporary
agencies and of other questionable bills from the two agencies.

Although Chancellor Charles Young said he was deeply distressed
over the alleged acts, he said he was pleased that administrative
processes detected the alleged wrongdoing.

"The discovery of these improprieties was the direct result of
UCLA’s policy that calls for periodic rotation of responsibilities
among Purchasing Department buyers," he said.

"This report should send a loud and clear message that UCLA not
only will not tolerate criminal behavior, but that all of those who
choose to engage in such behavior run a serious risk of detection,
dismissal, arrest and incarceration," he continued.

Mandel echoed Young’s statement, saying that in a community of
55,000 it is "inevitable" that some people will have weaknesses and
frailties.