SALINE MEMORIAL HOSPITAL SCANDAL

Saline Memorial Hospital Scandal

The first the public learned of the developing scandal came in March, 1984, when Alsobrook, the prosecutor, asked the state police to investigate allegations of fraud at Saline Memorial, and E.F. Black, the hospital’s long-time administrator, suddenly resigned, amid reports that he had checked himself into a substance-abuse program at another, Little Rock hospital. It didn’t take long for the state police to collect a large amount of evidence documenting various misappropriations of funds at the hospital.

Saline Memorial Hospital

Investigation Marred with Questions

Why did the Prosecutor need to recuse himself?  Why did Arkansas Attorney General Steve Clark drag his feet and do nothing?  Why did an appointed out of district prosecutor withdraw from the case? Why did the newly elected prosecutor back-off and appoint a Special Prosecutor, Dan Harmon, to investigate the case?

  • March, 1984 – The Saline Memorial  Hospital Scandal broke, but finding a prosecutor to lead the investigation proved challenging.
  • Summer of 1984 – After several failed attempts to find an attorney willing to accept the position of special prosecutor, Dan Harmon who came in third in a three-man race for district prosecutor accepted the position.
  • Harmon used the position to make a name for himself.  Evidence gathered from the party house raid was never seen by anyone but Harmon who used the photos and videos to blackmail high-level officials.

Major Participants in the Investigation and Scandal

Judge John Cole

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E.F. Black

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Dan Harmon

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Dan Moudy

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Joe Kelly Hardin

Hardin was the newly elected prosecutor, that replace Aslobrook, that turned the investigation over to Dan Harmon.

Steve Clark

Clark was the state AG. He appointed two young prosecutors to the case, however, for what ever reason did not pursue the case.

Saline Memorial Hospital Scandal Outcome

Frustrated Jury

He didn’t ask about the cocaine. He didn’t go into the prostitution or video tapes.

The scandal’s outcome had proven to be disappointingly indecisive. In reconciliations worked out by the Special Prosecutor, Dan Harmon, the individuals charged were astonishingly only required to repay the money that had been taken from the hospital. The only person sentenced to prison was the hospital administrator, E.F. Black. There was testimony about how the lake house at Lake Norrell always had drugs and prostitutes available for guests, but there was never any testimony pursued as to the source of the drugs or prostitutes. The prosecutor did not seem interested in that line of questioning. Harmon was in control of the process, steering the outcome. Several grand Jurors seem to think the whole process was a waste of time. Harmon indicated to the jury that certain charges could not be considered. He also said what charges could be brought, and what class of charge they could be. The jurors where ready to throw the book at them, but Harmon said this was all we could do.

The below newspaper articles are in chronological order but may create more questions than answers; typical of Saline County reporters.  Dan Harmon took control of the media and manipulated reporters to bolster his status as a leading public official.

The links below are large PDF files which may take awhile to download.