THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, September 16, 1995 TAG: 9509160300
SECTION: LOCAL PAGE: B5 EDITION: NORTH CAROLINA
SOURCE: ASSOCIATED PRESS
DATELINE: NEWPORT NEWS LENGTH: Medium: 59 lines
A special prosecutor has cleared the administrator of a Newport News hospital of allegations that he embezzled money to donate to Gov. George Allen's 1994 inaugural celebrations.
York County Commonwealth's Attorney Eileen Addison cleared Joseph F. Johnson after she investigated the charge, which was made by a member of the board of directors of Newport News General Hospital.
``I didn't see that it could be prosecuted for criminal intent,'' Addison said. She said Johnson received approval from people in authority for his actions.
The incident involved two checks totaling $3,500 that Johnson wrote to two inaugural parties for Allen. Johnson had the hospital reimburse him for the donations and about $300 in hotel bills related to attending the events.
Johnson, but not the hospital, was listed on a program for one of the events as a key sponsor. Johnson said he did not know why the contribution was listed that way.
Several hospital board members said they were not aware of the contributions, and two accused Johnson of trying to enhance his political standing with the new Republican administration. Alvin Bryant, a surgeon and president of the hospital's medical staff, swore out a warrant for embezzlement against Johnson.
But the chairman and secretary of the board said they knew about the contributions and had given Johnson permission to donate the money.
Donating to the events gave the hospital valuable access to newly elected state officials, some board members said. They noted that political ties, not medical experience, led them to hire Johnson in the first place. Johnson is a former aide to Jesse Jackson and worked on former Gov. L. Douglas Wilder's 1992 presidential campaign.
Meanwhile, Johnson said Thursday the hospital made a mistake involving a $500 contribution to Wilder's 1994 Senate campaign. He said a member of the hospital's administrative staff, Patricia Brent, directed a hospital employee to issue a check for that amount to Wilder when he visited the hospital in August 1994.
Direct contributions from businesses to political campaigns are illegal under federal election laws. Tax laws also prohibit nonprofit organizations, such as Newport News General, from making political donations that support one candidate over another.
Johnson said he knows such donations are not allowed and told his staff that when he learned of the contribution a day or so later.
``It was a mistake and we acknowledge that,'' Johnson said. ``I had real concerns when I heard about that.''
Johnson said he will ask the Wilder campaign, which cashed the check in September 1994, to return the money. Wilder's campaign treasurer, son Lawrence D. Wilder Jr., declined to answer questions about the money. by CNB