Former North Sunflower Medical Center board member, business associate arrested in $1.2M fraud case
JACKSON, Miss. — State Auditor Shad White announced Monday that special agents from his office have arrested Phil McNeer, a former member of the North Sunflower Medical Center (NSMC) Board of Trustees, and Chris Waldrup, McNeer’s employee, in connection with a multimillion-dollar fraud scheme.
According to White’s office, McNeer and Waldrup are accused of concealing McNeer’s ownership of a business by submitting 216 fraudulent invoices to NSMC between March 2015 and March 2025. The invoices were submitted under Waldrup’s name but benefited McNeer’s companies, authorities said.
As a board member, McNeer was legally barred from using his position for personal or business gain. Investigators say the invoices led the hospital to make improper payments worth $1.2 million. The auditor’s office has issued a demand for repayment, one of the ten largest demands during White’s tenure.
“My office has a no-tolerance policy for theft of taxpayer dollars,” White said. “The dedicated team at the State Auditor’s Office will continue to work closely with prosecutors to get record results for taxpayers.”
If convicted, McNeer faces up to 30 years in prison and fines of $26,000. Waldrup faces up to 20 years in prison and fines of $21,000. Both men remain innocent until proven guilty in a court of law.
The auditor’s office encourages citizens to report suspected fraud at www.osa.ms.gov or by calling 1-800-321-1275 during normal business hours.