JACKSON, Miss. – Today State Auditor Shad White announced Special Agents from his office have arrested Phil McNeer, a former North Sunflower Medical Center (NSMC) Board of Trustees member, and Chris Waldrup, an employee of Phil McNeer, for allegedly concealing the true identity of McNeer’s business through the submission of fraudulent invoices to NSMC under Chris Waldrup’s name.
The Office of the State Auditor has issued a $1.2 million demand to McNeer and Waldrup. This demand is the one of the ten largest demands issued during State Auditor Shad White’s time in office.
Between March 2015 and March 2025, McNeer and Waldrup allegedly submitted 216 fraudulent invoices to NSMC, causing the hospital to make payments to, and for the benefit of, businesses owned by Phil McNeer. As a NSMC board member, McNeer was prohibited by law from using his position to benefit himself or any business he is associated with.
“My office has a no-tolerance policy for theft of taxpayer dollars,” said State Auditor Shad White. “The dedicated team at the State Auditor’s Office will continue to work closely with prosecutors to get record results for taxpayers.”
If convicted McNeer faces up to $26,000 in fines and up to 30 years in prison. Waldrup, if convicted, faces up to $21,000 in fines and up to 20 years in prison. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law.
Suspected fraud can be reported to the Auditor’s office at any time by clicking the red button at www.osa.ms.gov or calling 1-(800) 321-1275 during normal business hours.