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Island Hospital

Island Hospital Foundation has revealed a little more information about the embezzlement of $300,000 and says it is taking steps to prevent a similar event from happening again.

In a statement released Friday afternoon, the hospital foundation said a credit card statement was discovered on August 25 which showed, “inappropriate personal items and services had been purchased with an Island Hospital Foundation credit card.”

The statement said further investigation revealed that this had been going on for at least two hears and that, “foundation funds had been misappropriated to pay the credit card charges.”

“On Wednesday, August 27, 2014, the now former Development Director of IHF was confronted with the preliminary findings, admitted gross misconduct and was terminated,” the statement said.

The former Development Director, Bernadette Stanek now faces 4 counts of first degree theft and 13 counts of forgery. An arrest warrant for Stanek was issued on Thursday.

The foundation said the embezzlement was accomplished by hiding account information and payments from the foundation Board of Directors.

A preliminary investigation, the foundation said, shows that when the foundation changed its account to another bank, the (now) former Development Director continued using a credit card that remained active at the original bank as well as a credit card from the new bank.

According to the foundation statement, the Development Director, appears to have written checks and forged the required board member’s signature in order to pay the credit-cart charges.” Meanwhile, finance reports to the board were altered so the funds would not show up missing.

The foundation said its Board of Directors is interviewing accounting firms to take over the general accounting of all IHF funds, including credit card invoices, approval and payment, and expenses and donations. In addition, the accounting firm will develop policies and procedures for the Board of Directors to adopt to ensure inappropriate use of funds does not ever occur again.

Island Hospital maintains insurance coverage for the Hospital and IHF. The policy includes coverage for theft, forgery, credit card theft, violation of fiduciary obligations and other applicable coverage. IHF and Island Hospital have submitted claim notices to the carrier.

COVID-19 Cases in Skagit County

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Updated 7:00 pm August 12, 2020.

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