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Former University Employee Pleads Guilty to $716,000 Embezzlement Scheme
SPRINGFIELD, Mo. – Carla Rathmann, 54, of Mount Vernon, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of mail fraud and one count of credit card fraud. Rathmann was hired by the University of Missouri as an administrative officer at the Southwest Research Center, located in Mount Vernon, in January 2000.
Rathmann admitted that she embezzled a total of $716,665, primarily by submitting fake and fraudulent invoices and bills to the University of Missouri. Rathman also admitted that she illegally used a university credit card for approximately $146,144 in personal expenses.
The University of Missouri detected the embezzlement and worked closely with law enforcement to investigate. The university’s cooperation was instrumental in determining the full scope of the fraud scheme. Rathmann was fired from her position in September 2015 after officials discovered that she had used her university credit card to pay for personal expenses.
In 2005, Rathmann created and registered three shell companies with the Missouri Secretary of State’s Office. Rathmann admitted that these companies – R&R, R&R Argi and Garrett Farm and Oil – did not produce a single product or provide a service of any type. Either Rathmann or her husband were the owners and registered agents for these companies.
Rathmann issued bills or invoices in the names of these shell companies to the University of Missouri for products or services ostensibly provided to the Southwest Research Center. In reality, none of these companies provided a single item or a service to the Southwest Research Center. The invoices or bills submitted by Rathmann to the University of Missouri for payment were entirely false and fraudulent.
By pleading guilty today, Rathmann agreed to forfeit to the government a $716,665 money judgment, which represents the proceeds derived from the fraud scheme. Rathmann is subject to a sentence of up to 30 years in federal prison without parole.
Key Facts
- State: Missouri
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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