Former hospital director charged after embezzling $600,000 from charitable fund, police say

A former Pennsylvania hospital director was charged after she allegedly embezzled more than $600,000 from the hospital's charitable fund.

Norma Galagarza, 68, made around 900 unauthorized transactions from Doylestown Hospital's account between 2008 and 2021, the Bucks County District Attorney's Office said in a press release.

Galagarza allegedly used the stolen funds to pay her personal expenses including her taxes, cell phone bills, and car payments.

She retired as the hospital's director of medical staff in March of 2021, the attorney's office said.

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Insufficient funds

Authorities said they began their investigation in January 2022 after the hospital's board of directors said they received an insufficient funds notice on the account, which the board had not even realized was still open.

The account, known as the Charitable Fund, was created in 1991. Funded by donations from physicians, it was used to help the community and employees in need, the release states.

The account was managed only by the director of medical staff and overseen by an executive committee of physicians.

The committee thought the account went dormant after members stopped getting monthly statements around 2007. They realized the account was still active when they began getting insufficient funds notices.

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After reviewing bank statements, hospital authorities found $55,000 worth of unauthorized withdrawals and deposits from October 2020 to December 2021. They also realized that the mailing address on the account was changed to Galagarza home address.

Overall, police say that in the 15 years before her retirement, Galagarza made 896 unauthorized transactions totaling approximately $604,702.29.

She was arraigned on Tuesday on felony counts of theft by unlawful taking, theft by deception, receiving stolen property, knowledge that property is proceeds of illegal activity, forgery, access device fraud and computer trespass.

Galagarza was released on a $250,000 bond.