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Thefts from Birth Injury Fund alleged

A former claims manager for the Virginia Birth Injury Fund has been indicted on federal charges related to the alleged embezzlement of more than $800,000 from the fund.

Iris F. Allen, 44, of Richmond worked for the fund from 2004 until earlier this year.

The indictment alleges 12 counts of embezzlement, 11 counts of health care fraud, three counts of aggravated identity theft and three counts of interstate transportation of stolen property.

According to the indictment returned yesterday and unsealed today, Allen created two companies and generated invoices from the companies for nonexistent or inflated goods and services. She also is accused of using the names of parents of claimants to create the appearance of legitimate invoices.

The fund was created in 1987 to provide lifetime care for infants who suffer severe neurological injuries at birth. Physicians and hospitals who contribute to the fund are protected from medical malpractice suits.

The prosecution is a joint effort of state and federal authorities, with the FBI, Virginia State Police, the U.S. attorney’s office and the Virginia attorney general’s office participating in the investigation.
By Alan Cooper

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