An administrator formerly responsible for an Orem rehabilitation center was arrested on Wednesday for reportedly stealing hundreds of thousands of dollars from the business to fund family vacations, home remodeling and other personal expenses.
Timothy Claybaugh, 36, was booked into the Utah County Jail on suspicion of six second-degree felonies including money laundering, communications fraud, pattern of unlawful activity and three counts of theft by deception.
Beginning November 2016, Claybaugh worked as an administrator at Stonehenge of Orem, a short-term rehabilitation and skilled nursing center that specializes in post-hospitalization care.
He voluntarily resigned in May 2019 to work for a competing company, and the next day, the company owner discovered Claybaugh had reportedly embezzled over $169,876 from the center.
“It was found that Timothy purchased vast amounts of unauthorized personal items including gift cards, groceries, appliances, flowers for his wife, construction tools and materials to finish his basement, toys, a bike, diapers, furniture, electronics, landscape materials, a barn door, fast food, candy and energy drinks,” police reported. “The amount Timothy has spent on his company card in a two-year time period is a staggering $148,794.”
As an administrator, Claybaugh was in charge of all facility operations and departments, including company finances and any money spent on facility operations.
The company owner acquired bank statements that showed Claybaugh used the company credit card to purchase more than 400 gift cards for Visa, Delta, Hotels.com, Airbnb, Home Depot, Nordstrom, Fandango, Amazon, Target, Cold Stone, Verizon and Walmart.
“It is suspected Timothy used gift cards to fund recent trips to Costa Rica, New York, and Disneyland,” police reported. “He has also funded his new home remodel using gift cards.”
Claybaugh also reportedly wrote company checks to himself totaling $62,708 and stole petty cash totaling $18,768 since he started working in 2016, the report stated.
He also reportedly used his personal credit card at local hospitals for $11,550 and reimbursed himself three times the amount using statements and invoices.
“Timothy devised a scheme to defraud Stonehenge of Orem by communicating (writing) on bills and invoices that he paid with his own credit card when it wasn’t the truth,” police reported.
Detectives discovered Claybaugh hid his purchases by laundering the money through gift cards instead of blatantly using the company credit card.
He also reportedly recorded multiple reimbursements to employees at the time they left the company and then pocketed the money himself.
Claybaugh previously worked as an administrator for Stonehenge of American Fork in 2012 and Stonehenge of South Jordan in 2015. The police report did not disclose whether embezzlement happened at those locations as well.
A spokesperson for Stonehenge of Utah was not immediately available for comment.
Claybaugh was released from jail after posting a $60,000 bail bond on the same day he was arrested.