State Auditor Shad White announced today that his special agents from his office have apprehended Phil McNeer, a former member of the North Sunflower Medical Center (NSMC) Board of Trustees, and his employee Chris Waldrup. The two men are accused of concealing McNeer’s business interests by submitting fake invoices in Waldrup’s name.
The Auditor’s Office has issued a $1.2 million demand to McNeer and Waldrup. Officials say it is one of the top 10 demands made since Shad White took office.
According to authorities, between March 2015 and March 2025, McNeer and Waldrup reportedly filed 216 fake invoices to NSMC. Despite the fact that state law prohibits board members from exploiting their position for personal or business gain, hospital payments went to McNeer-owned firms.
“My office has a no-tolerance policy for theft of taxpayer dollars,” Auditor 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 a $26,000 fine and up to 30 years in jail. Waldrup risks a $21,000 fine and up to 20 years in jail.
The Auditor’s Office reminds the public that everyone detained is assumed innocent until proven guilty in a court of law.
Suspected fraud can be reported to the Office of the State Auditor by contacting 1-800-321-1275 during business hours or clicking the red reporting button on osa.ms.gov.
