Mental hospital made illegal payments

Patton State Hospital made nearly $1 million in fraudulent payments to some of its employees between August 2007 and March 2011.

An audit by the State Controller’s Office also found improper reporting of hours worked and inflated leave claims at the Highland hospital, according to a report in The Press-Enterprise.

One fraud involved three employees who colluded with a staff member in the payroll department to falsify payroll records. The hospital’s payroll office lacked oversight, and duties within the office were not property segregated, making the illegal acts possible, according to the report.

Patton State Hospital treats mentally ill patients accused of or convicted of crimes. Hospital officials alerted state authorities when they learned of the transgressions.

The State Controller is conducting 14 other audits throughout the state, according to the report.