BOSTON – In a brazen display of betrayal, Kathleen Libby, a 40-year-old former office manager of a Brookline medical practice, pleaded guilty today to embezzling over $650,000 from the practice over several years.
Libby’s scheme was a web of deceit, where she stole from the medical practice in a variety of ways, including by transferring funds from the practice to a personal PayPal account she established named “Medline Surgical Supplies.”
The PayPal account was a clever ruse, creating the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.
But Libby’s thievery didn’t stop there. She also used the medical practice’s bank account to make payments toward purchases she had made at a variety of retailers, including Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites.
In a shocking display of audacity, Libby even placed two of her relatives on the medical practice’s payroll and used its credit cards for her own personal benefit.
Libby’s guilty plea comes after a lengthy investigation by the Federal Bureau of Investigation. She faces a charge of wire fraud, which provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.
U.S. District Court Judge Leo T. Sorokin has scheduled sentencing for September 4, 2024. The case was prosecuted by Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit, with the support of Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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