Arrest made in Decatur County General Hospital scandal

Grand Jury returns indictments

The Office of the District Attorney General has announced that a Grand Jury has returned two indictments containing four counts each as a result of an ongoing investigation into the financial dealings of Decatur County General Hospital.

Kelly Codega (former C.E.O. of Impeli Health and former C.E.O. of Decatur County General Hospital) and Impeli Health, Inc. (former management company for Decatur County General Hospital) have each been charged with theft of monies belonging to the University of Tennessee as follows:

Count 1 – Theft of Property in the amount of $153,988.57, violating T.C.A. §39-14-103(a)

Count 2 – Theft of Property in the amount of $153,377.52; violating T.C.A. §39-14-103(a)

Count 3 – Unlawful transfer of funds with the intent to alter, misappropriate or commit fraud in the amount of $153,988.57, violating T.C.A. §39-14-602(a)(3) the Tennessee Personal and Commercial Computer Act of 2003;

Count 4 - Unlawful transfer of funds with the intent to alter, misappropriate or commit fraud in the amount of $153,377.52, violating T.C.A. §39-14-602(a)(3) the Tennessee Personal and Commercial Computer Act of 2003.

“Our department has worked in conjunction with the State’s Investigative team at the Comptroller’s office to execute a warrant for the arrest of Codega in Lauderdale County, Tennessee,” states Decatur County Sheriff Keith Byrd. “I want to thank Lauderdale County Sheriff Steve Sanders and his officers for their assistance in the arrest. The defendant was transferred to our facility Thursday night and subsequently posted a $10,000 bond.”

Ms. Codega was arrested on Thursday evening in Lauderdale County, Tennessee and transferred to Decatur County Detention Center where she has been held on a $10,000 bond.

“These indictments are the result of a multi-year investigation by the Tennessee Comptroller’s Investigative Division into suspected improper use of funds at Decatur County General Hospital,” states District Attorney Matthew F. Stowe. “These ‘white-collar’ investigations always take longer than we would like due to the nature of in-depth financial analysis. I want to assure the people of Decatur County that, while the wheels of justice sometimes turn slowly, we are dedicated to seeing things through to the end.”

Arraignment will be held in Decatur County Circuit Court on Tuesday, June 29.