Barbara Butler, Wire Fraud and Tax Evasion, Tennessee 2024

NASHVILLE, Tenn. – Barbara Butler, 59, of Murfreesboro, Tennessee, is facing a hefty prison sentence after admitting to a long-running scheme to pilfer over $1.8 million from her employer. The former comptroller pleaded guilty last week to federal charges of wire fraud and tax evasion, a case that reveals years of brazen self-enrichment at the expense of D.S. Collaborative in Brentwood.

According to court documents, Butler, who handled all of D.S. Collaborative’s finances for more than two decades, began siphoning funds in December 2009 and continued until July 2016. She didn’t bother with subtlety, writing company checks made out to herself and racking up charges on company credit cards for personal expenses – and those of her family. The scheme included opening a Costco credit card under a family member’s name, allowing them to make purchases with company funds.

The spending wasn’t limited to everyday items. In March 2015, Butler used a company credit card to finance a $11,774.96 shopping spree at Jared Galleria Jewelry in Franklin, Tennessee. Over the seven-year period, the total stolen exceeded $1.8 million – a staggering sum concealed through meticulous manipulation of the company’s books. This wasn’t a quick grab; it was a sustained, calculated effort to live large on someone else’s dime.

But Butler’s house of cards began to wobble in 2016 when D.S. Collaborative became the subject of an IRS audit. Instead of coming clean, she doubled down on the deception, providing false financial documents to the IRS auditor and altering general ledgers to hide the fraudulent checks. She also failed to report the embezzled income to the IRS during tax years 2010-2015, resulting in a tax loss of $521,207 to the federal government.

Under the terms of the plea agreement, Butler now faces up to 25 years behind bars and will be required to pay full restitution for the $1.8 million she stole. She’s also agreed to forfeit the contents of several bank accounts and the proceeds from the sale of a house – a small consolation for the damage she inflicted. This case was spearheaded by the IRS-Criminal Investigation division, with Assistant U.S. Attorney Kathryn Booth leading the prosecution.

This isn’t just about money; it’s about a breach of trust and a calculated betrayal of an employer who relied on Butler for decades. The Grimy Times will continue to follow this case as sentencing approaches, bringing you the latest updates on this example of brazen financial crime in Middle Tennessee.

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