Oregon Department of Justice

Nursing Home Manager Imprisoned For Embezzling Over $122,000

Attorney General Hardy Myers today announced that Coreen Savage has begun serving a 20-month sentence for embezzling funds from her former employer, Avamere Corporation, owner of Newport Rehabilitation and Specialty Care, Inc. As part of a plea agreement, Savage pleaded guilty on November 20, 2007 to six counts of Theft in the First Degree and four counts of Forgery in the First Degree. Lincoln County Circuit Court Judge Robert Huckleberry sentenced Savage to twenty (20) months prison and ordered her to pay restitution of $122,412.30. Savage turned herself into the Department of Corrections today and brought an initial restitution payment of $26,000.

In February 2007, the Oregon Department of Justice Medicaid Fraud Unit (MFU) received a call from the general counsel of Avamere Corporation alleging that Savage had embezzled funds from her employer. Savage was the Business Office Manager for the Newport nursing home and was entrusted with many of the financial responsibilities for that facility.

A MFU investigation established that between November 5, 2005 and January 19, 2007, Savage stole $122,412.30 mainly by writing company checks payable to herself and forging the Newport administrators' names on the checks. Using her accounting knowledge, she then concealed her criminal activities by altering the corporate books. Savage used the stolen money to finance a gambling addiction. This case was investigated by a MFU investigative auditor and prosecuted by a MFU attorney through the Lincoln County District Attorney's Office.