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Sandy woman charged with embezzlement

Janet Toler pleads not guilty in $714,000 theft case

A federal court arraigned a Sandy woman Friday, Oct. 13, on charges of embezzling nearly three-quarters of a million dollars from a nursing home for which she worked.

Janet R. Toler, 65, of Sandy, pleaded not guilty to charges of money laundering and theft or bribery from federally funded programs, such as Medicaid and Medicare.

Her trial is set for Dec. 12.

Toler worked as an accounts receivable clerk at Reedwood Extended Care Center's administrative offices in Gresham from March of 1997 to November of 2005. Her job included receiving patient payments, preparing deposit slips and depositing money into the nursing home's checking account.

According to the seven-count indictment, in February 2001 Toler allegedly set up a corporation called Reedwood with its principal place of business listed as her home address in Sandy. She also set up a checking account in her name, which did business as 'Reedwood.' Toler was the only signer on the account.

For more than four years, Toler deposited checks written for the care of elderly nursing home patients into her bank account. Then she manipulated accounting records to hide the stolen money, totaling $714,375.

The indictment alleges that Toler used the money to buy a 2001 Ford Expedition, a 2002 Pontiac Bonneville, a utility trailer and two all-terrain vehicles.

'As a result of Toler's embezzlement of the patient payments, Reedwood Extended Care Center suffered significant financial problems, limiting their ability to provide services,' according to the indictment.

If convicted, Toler could face as many as 70 years in prison and a $1.75 million fine.

Dan Wardlaw, a 20-year special agent with the Internal Revenue Service's criminal investigation division, has worked for three years as a spokesman based out of the Seattle field office.

'It's the first one I've ever seen involving a nursing home,' he said of the Reedwood embezzlement case.

Criminal investigators with the Internal Revenue Service and the Gresham Police Department investigated.