Tuesday afternoon

• Prosecution rests, but not before defense attorneys rise to challenge documents mentioned in testimony by F. B. I. but not furnished defense during discovery. Defense attorneys argue for directed verdict of not guilty; judge denies. Cross examination of Agent Shannon Wright is completed.

• Hospital financier James Pope of Shelbyville, Tenn. is first witness for Shoemaker. Pope assisted with USDA loan to purchase Tri-Lakes from city and county in 2005. Pope testified that payment for a non-profit was not irregular. Prosecutors pressed Pope to point out where the $250,000 expenditure for Shoemaker’s non-profit was apparent on financial documents presented to hospital trustees for review.

• Former UPS Bank official Patrick Kenney testified that his bank, which loaned almost over $27 million in USDA-guaranteed funds, was aware of the payment to Shoemaker. Former Tri-Lakes CFO John Gregory testified that the payment to Shoemaker was made at the behest of Dr. Robert Corkern, who handled financial matters at the hospital for Corkern.

Wednesday morning

• Before jurors return, Garner attorney Chrisi McCoy cites the missing documents and asks for a mistrial. Judge Biggers denies the motion but decides to allow Chandler to be brought back for further questions.

• Gregory continues testimony. Prosecutors question date for check of $250,000 to Shoemaker for payment for his non-profit. In final question of Gregory’s cross-examination, Gregory states that he is presently employed by Ray Shoemaker. Shoemaker defense rests.

• CPA Mark Bullock is first witness for Garner. He is certified as an expert witness as a forensic auditor by the court. Bullock testifies he spent almost six weeks reviewing Garner’s books and Tri-Lakes’ financial statement. Testified that hourly rates charged for nurse staffing by Garner’s businesses were below the industry average and less than Tri-Lakes had formerly paid for contract nurses.

• Bullock also testifies that Tri-Lakes fell 30 to 60 days behind in payments to Garner’s Guardian Angel and On-Call Staffing and that his businesses paid its nurses weekly.

• Registered Nurse Deborah Beavers and Licensed Practical Nurse Melissa Meek-Phelps, now Panola Circuit Clerk, were the next witnesses called, respectively, by Garner’s attorneys. Both testified that they had worked at Tri-Lakes in capacities that included maintaining sufficient nursing staff to provide care consistent with the patient census and acuity. Both testified that the normal operating procedure at the hospital was to first utilize nurses and assistants employed by the hospital and then to call nurse staffing services to fill in coverage gaps. Garner’s staffing business was among at least seven agencies used by the hospital.

“Usually the first agency that responded who could fill our need was the one we used,” Beavers testified.

“During 2005 to 2007, did anyone at Tri-Lakes Medical Center ever attempt to tell you to use a special nurse staffing agency?” Garner attorney Bill Kirksey asked.

“No sir,” Beavers replied.

• Meek-Phelps’ testimony elaborated on the hospital’s protocol for bringing in contract nurses: “By the time you realize that you needed those nurses, you call all of them (staffing agencies),” she said. “They would start calling their nurses and see who was available,” she said. The time that elapsed could be from 30 minutes to three hours, she added.

“Who called you firstest with the mostest got the job?” Kirksey then asked.

“That’s correct,” Meek-Phelps replied.

“Did anyone ever tell you to use On-Call or Guardian Angel above any of the others on your list?” Kirksey asked.

“No,” Meek-Phelps said.

Wednesday afternoon

• Joyce Goins, a house supervisor at Tri-Lakes in 2006 and 2007, provided additional testimony for Garner’s business during afternoon testimony: “We would call all the agencies, and whoever responded first with a nurse got (the assignment),” she said.

Government prosecutors and witnesses have built their case around a paper trail with excruciating amounts of detail. Less successfully, they pinned additional hopes on the testimony of Chandler, whose own 26-count indictment, admitted crimes and frequent self-contradictions on the stand helped defense attorneys minimize the value of his testimony. His alleged roles in the crimes include taking $268,000 in bribes from Garner to steer business from Tri-Lakes Medical Center to Garner’s medical staffing agencies and sharing the funds with Shoemaker.

(Editor’s note: Tri-Lakes Medical Center was purchased through the U. S. Bankruptcy Court in September, 2010 by a local physicians’ syndicate which still holds an ownership share of the hospital.

R. N. Deborah Beavers, currently Chief Nursing Officer at Tri-Lakes, also testified that the hospital presently does not use nursing agencies.)

The foregoing was compiled by Billy Davis, John Howell of the Panolian and Errol Castens of the North Mississippi Daily Journal.