Pulaski County is investigating a suspected payment-diversion scheme involving approximately $1.9 million in public funds intended for medical services at the county detention center.

According to a statement released by the county and reported October 28, an email received June 19 appeared to come from an accounts-receivable representative for Turn Key Health Clinics LLC.

The message requested a switch to automated clearinghouse payments and provided new banking information.

The Sheriff's Office forwarded the request, and the updated account information was entered into the county payment system.

How the issue came to light

On October 23, Turn Key contacted the Sheriff's Office to report that it had not received payments for several months and had never requested a banking change.

A subsequent review concluded that the payment-change message appeared fraudulent.

County officials say approximately $1.9 million had been diverted over several months.

They also report recovering the most recent payment of $126,344.87 after discovering the suspected scheme.

Investigation and safeguards

The investigation is ongoing, and authorities say the FBI has been notified.

County Judge Barry Hyde has urged departments involved in making payments to review procedures and strengthen fraud safeguards.

The investigation has not established in the available report who sent the fraudulent email or whether additional funds will be recovered.

The case illustrates why changes to vendor payment details need independent verification through established contact channels, rather than relying on an email alone.

501 Daily will follow official findings and any changes to county financial procedures.