From the article: The events date back to 2001...
That much money could very well have been bilked over that long of a period.
170,000,000 / 13 = 13,076,923 per year.
13,076,923 / 1,300 = 10,000 +/- average.
Factor in that perhaps there were some brothers that were exorbitantly richer than others and may have contributed large sums of money, or there may have been folks that died that had the "hospital" fund as their life insurance beneficiary.
Regardless, it seems plausible for this to be true.
If it is true, I'm sure there will be more said about it and more will come out.
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EDIT: Well, took me a while to do the math, and during that time, y'all ended up saying the same things.