Lindale grandmother sentenced to federal prison for fraud

TYLER - A 62-year-old Lindale woman will spend the next 21 months in federal prison for stealing hundreds of thousands of dollars from her employer.

The employer, HealthFirst TPA of Tyler, says the woman, Brenda Bays, appeared to be a model employee and law-abiding citizen.

"She was well-liked," said Tom Slack, CEO and owner of HealthFirst since 1980. "She was like anyone's grandmother."

Prosecutors says, as with most white-collared crimes, greediness finally caught up with her.

Bays pleaded guilty to stealing over $175,000 during a period that spanned over two years.

U.S. Judge Michael Schneider ordered her to 21 months in federal prison and she must pay $175,744 in restitution.

Slack says the story starts almost three years ago.

Bays was about two years into her five-year stint at HealthFirst when she started altering computer records. She got away with it for a couple of years until an internal audit notified employers that Bays was receiving claim checks at a post office box in Lindale. Also, the audit revealed she was having checks sent to her home.

"She forged and signed as the beneficiary person that was supposed to receive the claim checks," said Asst. U.S Attorney Frank Coan, whom prosecuted the case. "She then counter-endorsed with her name on the checks and deposited it into her bank account. This happened approximately 75 times," said Attn. Coan.

Mr. Slack said he discovered the fraud in April 2008 and immediately spoke with his employee. He then quickly notified authorities.

"I called her in and basically confronted her and she admitted it," said Slack. "At that time, we discovered she took $13,000 in a 30-day period. She told me that was it...but we soon learned she took a lot more."

Slack said when Bays was hired her background check came back clean.

Little did he know - this wasn't her first rodeo.

"She had engaged in almost an identical scheme about 15 years ago in West Virginia," said Attorney Coan.

However, she remarried, her named changed and she moved out-of-state, so Slack speculates that could be why her background check didn't reveal prior arrests or convictions.

Through this all, Mr. Slack said he's learned a valuable lesson and wants to advise other employers to make sure to hire a legitimate company to screen employees, especially those whom handle money.

A check with the Better Business Bureau of Tyler reveals HealthFirst has an outstanding record in almost 30 years of business.

The case was investigated by the FBI.