Related Federal Cases
Knoxville Woman Sentenced to Prison for Embezzlement and Bankruptcy Fraud
A Knoxville woman has been sentenced to 44 months in prison for embezzling approximately $725,000 from her former employer and filing false tax returns and bankruptcy documents, according to court records. Michelle Clabough, 45, was sentenced on February 3, 2022 by the Honorable R. Leon Jordan in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of her plea agreement, Clabough pleaded guilty to two counts of forging private entity securities, one count of filing a false statement, and one count of filing a false bankruptcy record. She was ordered to pay $725,770 in restitution to her former employer and $134,421 to the Internal Revenue Service.
According to court documents, Clabough embezzled more than $725,000 from her former employer over a seven-year period while serving as an office manager. She also submitted fraudulent tax returns that did not include her stolen income, resulting in a tax loss of $134,421. Additionally, Clabough submitted a false record in a Chapter 13 bankruptcy proceeding in which she failed to disclose the income she obtained through her embezzlement.
The Internal Revenue Service – Criminal Investigation conducted the investigation that led to Clabough’s indictment.
Assistant United States Attorney Jennifer Kolman represented the United States in the case.
Clabough will serve 44 months in prison followed by three years of supervised release. She has been ordered to pay restitution in full to her former employer and the IRS.
This case highlights the importance of vigilance in preventing and detecting embezzlement and other forms of financial fraud.
Key Facts
- State: Tennessee
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime