NSW:Two hospitals caught up in ICAC inquiry

AAP General News (Australia)
02-14-2011
NSW:Two hospitals caught up in ICAC inquiry

(Eds: reissuing, adds SC to counsel's name in 8th par)



By Miles Godfrey

SYDNEY, Feb 14 AAP - Two sisters used the false premise of conducting medical trials
into the early detection of cancer to rort nearly $700,000 from the NSW health system,
a corruption inquiry has heard.

Sandra Lazarus, 32, and her sister Michelle Lazarus are accused of forging the signatures
of doctors and of filing invoices for goods and services that either never existed or
were never delivered.

The allegations centre on two Sydney hospitals - the Royal North Shore Hospital at
St Leonards and the Royal Hospital for Women, at Randwick.

The first day of a NSW Independent Commission Against Corruption (ICAC) inquiry in
Sydney on Monday was told Sandra Lazarus had approached senior doctors at both hospitals
asking if she might carry out trial studies on patients.

The purpose of the trials was to investigate the usefulness of an Israeli-designed
device, Medex, in the early detection of different types of cancer.

But the inquiry heard there was little evidence to suggest the trials went ahead.

Sandra Lazarus and her sister allegedly invoiced the hospitals for a combined $683,650.

The money was paid, with counsel assisting the inquiry, Todd Alexis SC, saying staffing
arrangements at the hospitals may have been to blame.

He also raised questions about the strength of corruption prevention measures at the facilities.

"It is alleged that Ms Lazarus and Michelle fraudulently obtained monies from each
of these hospitals by submitting false tax invoices for goods that either did not exist
or were not supplied to those hospitals or for services that were not provided," he told
the inquiry.

Mr Alexis also said reports had been received that Sydney's St Vincent's Hospital had
also been affected, but did not offer further detail.

Sandra Lazarus told the inquiry she carried out some clinical pilot trials with about
10 patients and made preparations for a full-scale trial involving about 200 patients.

She said she did so under the instruction of a senior doctor at the Royal Hospital
for Women, Professor Neville Hacker, director of the hospital's Gynaecological Cancer
Centre.

"The position that you put to this commission is that he did give you that verbal authority
to proceed?" Mr Alexis asked Sandra Lazarus.

"He did, yes," she replied. "He saw me going in and out with patient files, he saw
me going in and out with equipment as well. He knew where the equipment was kept."

Mr Alexis told the inquiry: "Evidence from Professor Hacker's personal assistant at
the time ... suggest that Ms (Sandra) Lazarus was rarely seen at the hospital and when
patients that might be suitable for the trial were identified she was difficult to contact
or locate."

He also said a professor at Royal North Shore Hospital would give evidence he had never
seen any data gathered from the trials.

Sandra Lazarus is alleged to have approached the hospitals in 2007 and 2008.

Michelle Lazarus is alleged to have been involved in the submission of the invoices
and controlled one of the corporate vehicles that procured the funds.

The inquiry heard that after pitching her plan to carry out the trials, Sandra Lazarus
gained access to sensitive hospital documents which helped her obtain the money.

"Ultimately the commission may consider that the evidence discloses a rather brazen
fraud that should have been readily detected," Mr Alexis said.

He said "attrition" of hospital staff and the use of new and agency workers may explain
why "appropriate accounts payable procedures were overlooked".

The inquiry continues and is expected to last 10 days.

AAP mdg/klm/nb

KEYWORD: ICAC LAZARUS WRAP (REISSUING)

� 2011 AAP Information Services Pty Limited (AAP) or its Licensors.