Doctors Say Employe Embezzled

Doctors Say Employe Embezzled

Mrs. Mildred Malloy Sought; Charge She Took $40,000

A bookkeeper-secretary for three doctors at Women’s Hospital was being sought today after a warrant was issued charging her with the embezzlement of more than $40,000.

City police are on the lookout for Mrs. Mildred M. Malloy, about 50, of 811 Barton Dr. The office of Prosecutor William F. Ager, jr., yesterday issued an embezzlement warrant against her charging that in the past five years she took a total of $40,205 from the office where she worked.

With Office 30 Years

For almost 30 years Mrs. Malloy had been a bookkeeper and secretary for Dr. Norman F. Miller, chairman of University Hospital's department of obstetrics and gynecology. Dr. Tommy N. Evans and Dr. George W. Morley, both professors of obstetrics and gynecology at the U-M Medical School, have shared the office with Dr. Miller in recent years.

A University Hospital spokesman, in a statement issued today, pointed out that the alleged shortages “concern only the private funds of the physicians involved.”

“An investigation has failed to show any involvement of state, hospital or University funds. The legal action started by the three doctors concerns matters outside the direct interest of the University,” the spokesman said.

Drs. Miller, Evans and Morley conduct a private practice in an office they rent from Women’s Hospital.

Their practice is in addition to their duties as faculty members of the Medical School.

Had Charge Of Money

As a trusted and veteran employe, Mrs. Malloy was in complete charge of finances coming into the doctors’ office from the private practice, police said. No audit had been made of the physicians’ books until two months ago when accountants discovered the alleged shortages. Mrs. Malloy was discharged Aug. 13, two days after city police entered the case.

Police declined to reveal why the audit was suddenly ordered.

City police went to Mrs. Malloy’s home in Barton Hills to serve the criminal warrant on her yesterday but she was not at home. A request was then made of Michigan State Police at the Ithaca post to check the home of Mrs. Malloy’s mother. It was believed Mrs. Malloy was visiting there but troopers said they found no one home.

Mrs. Malloy, a widow, has lived at the Barton Rd. residence with a son for a number of years.