Carla Rathmann Gets 4 Years for $781K University Fraud

Carla Rathmann, 55, of Mount Vernon, Mo., is headed to federal prison for four years without parole after stealing $781,670 from the University of Missouri over a 13-year scheme that funded luxury cars, casinos, and lavish vacations. U.S. District Judge M. Douglas Harpool handed down the sentence in Springfield, Mo., ordering full restitution in the amount of $781,670.

Rathmann, a former administrative officer at the university’s Southwest Research Center, pleaded guilty on June 6, 2016, to one count of mail fraud and one count of credit card fraud. From January 2000 until her termination in September 2015, she held trusted accounting, payroll, and purchasing duties—responsibilities she exploited to bleed the institution dry.

Beginning in 2005, Rathmann created three shell companies—R&R, R&R Argi, and Garrett Farm and Oil—registered with the Missouri Secretary of State. None of the entities provided a single product or service. Yet, between Jan. 24, 2005, and June 18, 2014, she submitted false invoices from these phantom businesses, tricking the university into paying $570,521 for goods never delivered.

Even more brazen, Rathmann approved her own fraudulent invoices. As the gatekeeper for billing, she rubber-stamped fake paperwork, then watched as checks were issued to her own accounts. The system trusted her. She betrayed it at every turn.

On top of the invoice scam, Rathmann abused a university-issued credit card, running up $146,144 in personal charges. The first unauthorized swipe came Feb. 19, 2002, paying $1,249 to Bolivar Insulation. The last came Aug. 20, 2015, when $30 went to Ozark Mountain Pest Control. In between: dog surgery, dental bills, propane, gas, herbicide, home remodels, and luxury items like a hot tub and above-ground pool.

The money flowed like casino winnings—because much of it was. Rathmann funneled stolen funds into gambling binges, high-end appliances, overseas trips with her husband, and everyday living expenses. The fraud unraveled in 2015 when auditors flagged the p-card abuse. Assistant U.S. Attorney Patrick Carney prosecuted the case, closing the book on a decade and a half of deception.