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Former CHOP lawyer Hairston facing theft allegations

Nonprofits across Philadelphia tapped Roosevelt Hairston Jr. as a board member and relied on him for answers to ethical questions. Even a courtroom opponent called him a careful steward of funds at Children's Hospital of Philadelphia, where he had been part of the legal team since 1997.

Sources say Roosevelt Hairston Jr. is the subject of a federal investigation for allegedly stealing from Children's Hospital of Philadelphia for more than a decade.
Sources say Roosevelt Hairston Jr. is the subject of a federal investigation for allegedly stealing from Children's Hospital of Philadelphia for more than a decade.Read more

Nonprofits across Philadelphia tapped Roosevelt Hairston Jr. as a board member and relied on him for answers to ethical questions. Even a courtroom opponent called him a careful steward of funds at Children's Hospital of Philadelphia, where he had been part of the legal team since 1997.

But Hairston, who became Children's general counsel in April, was fired on Feb. 18. Children's issued a news release that cited "financial irregularities" but that said little more. Now, sources say, Hairston is the subject of a federal investigation for allegedly stealing from the hospital for more than a decade.

Authorities are looking into allegations that Hairston falsely billed the hospital for nearly $1.7 million, according to a former hospital employee and a person familiar with the investigation. Both declined to be named because the investigation remains open.

Children's, the region's dominant pediatric hospital and a national leader in care and research, referred the case to the U.S. Attorney's Office, where spokeswoman Patricia Hartman declined to comment. She cited the office's policy not to confirm or deny investigations.

Hairston, 45, did not return phone calls to his home. His attorney, Jeff Lindy, said Hairston and his family were struggling with the ramifications of his firing.

"He's trying his very best to cooperate with CHOP," Lindy said. "It's a difficult situation all around."

Sources said that Hairston allegedly submitted bills for several fictitious vendors, including LBS Enterprises, a company he registered with the state in 1998, and that he had checks mailed to his own post office box.

In the fall, hospital officials mistakenly paid one of the vendors twice. They became suspicious when they could not contact anyone to fix the problem and questioned Hairston about it, one source said. An investigation followed.

For a financial behemoth like Children's, which reported $1.24 billion in expenses in 2009, the money Hairston allegedly took is not significant, said Jerry Katz, a health-care consultant in Philadelphia.

But the damage such a theft can do to the public trust can eclipse any financial impact, Katz said.

Children's spokesman George Bochanski declined to comment for this article or to describe the hospital's internal auditing procedures.

Hairston graduated from Temple University's law school in 1990. He went to work for prominent Philadelphia firms, including Schnader, Harrison, Segal & Lewis and the firm of former Temple law school dean Carl Singley.

He became associate general counsel at Children's in 1997 and moved up the ranks, recently overseeing legal and government affairs.

In 2009, Hairston's compensation from Children's, including bonus and benefits, was $727,130, a 15 percent increase over 2008, records show.

Hairston is married with four young daughters. The family's 7,000-square-foot Malvern home has a pool and six-car garage, according to public records.

Alan Feldman, former chancellor of the Philadelphia Bar Association, said he faced Hairston in settlement negotiations on a major case several years ago.

"He was a good negotiator" who didn't give away Children's money easily, Feldman said. "I always thought he was a professional, decent, smart fellow and a good advocate for his client."

As Hairston's career progressed, so did his reputation as a community leader. He became an adviser for various nonprofits, including Arthur Ashe Youth Tennis, the Red Cross of Southeastern Pennsylvania, and what is now the Economy League of Greater Philadelphia.

He was a regular campaign contributor, donating more than $50,000 to state and federal candidates - Democrats and Republicans - since 2003.

And he became a popular political appointee. In 2005, Mayor John F. Street appointed him to the Philadelphia Workforce Investment Board, which promotes training and job growth in the city.

The board reelected him to a second term as chairman last year. In a December news release announcing that, Mayor Nutter praised Hairston as "an incredible asset and a strong leader."

Appointed by Gov. Ed Rendell to the board of the state's Patient Safety Authority, which monitors health-care providers to improve care and reduce medical errors, Hairston has helped build relationships between the independent agency and legislators, spokeswoman Laurene Baker said.

Fellow board member Cliff Rieders, a malpractice lawyer, said Hairston was a "gentlemanly, responsible colleague."

When Rieders ruffled feathers last year by publicly criticizing the board and some members tried to pass rules to prevent him from doing it again, Hairston provided a reasonable voice against the effort, he said.

Hairston resigned from some board positions on the same day he was fired.

Jennifer Clarke, executive director of the Public Interest Law Center of Philadelphia, which Hairston served as board chairman during its most recent planning process, said she received a text message from him announcing his resignation.

"I was so sad," Clarke said. "You don't know what goes on in people's hearts."

Lindy said he had heard similar sympathetic responses from others in the city's legal community.

"I can't walk into a room full of lawyers without at least a half a dozen people coming up to me and asking me to send their regards to Roosevelt," he said.