Man pleads guilty in Spokane hospital thefts

SPOKANE - A hospital warehouse supervisor has pleaded guilty to federal charges that he stole inventory and netted more than $644,000 by selling medical supplies on an online auction.

Kevin Lee Ruff, 42, entered the pleas Wednesday in U.S. District Court to health care fraud and four counts each of embezzlement from a health care facility and money laundering.

He could face up to 10 years in federal prison on the first five counts and up to 20 years in prison for the four money laundering charges. He remains free pending a March 20 sentencing hearing.

Assistant U.S. Attorney Joseph Harrington said officials at Sacred Heart Medical Center questioned inventory adjustments Ruff had made to the computer inventory log that tracks items in the hospitals warehouse from January 2002 to October 2005.

Ruff told District Judge Fred Van Sickle he took items that included diabetic glucose test strips and inkjet cartridges, then sold the items online on eBay for below-market value.

FBI agents were able to track the stolen items when they subpoenaed Ruff's online PayPal account, Harrington said.

Between January 2002 and October 2005, according to court records, buyers of his stolen goods deposited $644,866 into his PayPal account to purchase the medical and office supplies, the government alleged.

Some of his clients included medical supply representatives, Harrington said.

Ruff did not comment after the hearing. His attorney, David Hearrean, said Ruff cooperated with investigators.