MEMPHIS, TN – A brazen scheme to pilfer nearly $300,000 from a Memphis medical practice has landed a former data entry clerk in federal hot water. Gloria Harris, 55, was indicted by a federal grand jury last week, accused of systematically stealing checks and opening fraudulent bank accounts.
According to the indictment unsealed today by U.S. Attorney D. Michael Dunavant for the Western District of Tennessee, Harris worked at Crescent Medical Corporation, owned by Dr. Ahsan Kathawala. Between January 2016 and March 2017, Harris allegedly intercepted checks made payable to Crescent and diverted them into accounts she secretly opened at Trustmark Bank and Suntrust Bank. The total haul: $292,500, all allegedly taken without Dr. Kathawala’s knowledge or consent.
But the deception didn’t stop at stolen checks. The indictment further alleges Harris used Social Security Numbers belonging to other individuals to fraudulently update a residential apartment lease and, crucially, to establish the very bank accounts used to funnel the stolen funds. This adds a layer of serious identity theft charges to an already complex case.
If convicted on the bank fraud charge, Harris faces a stiff penalty: up to 30 years in federal prison, a $1 million fine, and five years of supervised release. Each instance of fraudulent use of a Social Security Number carries a potential sentence of five years imprisonment, a $250,000 fine, and three years of supervised release – meaning Harris could face a lengthy combined sentence if found guilty on all counts.
The investigation was spearheaded by the U.S. Secret Service Economic Crimes Task Force, highlighting the agency’s expanding role beyond its traditional protective duties. Assistant U.S. Attorney Carroll L. Andre’ III is handling the prosecution, aiming to recover the stolen funds and bring Harris to justice.
The case serves as a stark reminder that even seemingly low-level employees can inflict significant financial damage through calculated fraud. The U.S. Attorney’s Office has vowed to aggressively pursue such cases, sending a message that financial crimes will not be tolerated in the Western District of Tennessee. The next court date for Harris has not yet been set.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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