NEW BEDFORD, MA – Kara Howland, a 37-year-old New Bedford woman, is facing a potential prison sentence after agreeing to plead guilty to charges of bank fraud and filing a false tax return. Howland, formerly the bookkeeper for a local seafood company, systematically siphoned nearly $600,000 from her employer over a three-year period, using the funds to pay off her personal credit card bills.
Between January 2016 and December 2019, Howland allegedly abused her position of trust, writing checks from the company’s accounts and diverting the money for personal use. She then meticulously falsified internal accounting records, attempting to disguise the theft by making it appear as payments to legitimate vendors. This wasn’t a quick grab; it was a calculated, sustained effort to line her pockets at the expense of her employer.
The scheme didn’t stop at the stolen funds. Howland also failed to report the embezzled money on her federal income tax returns, resulting in a tax loss of $180,863 to the government. Federal prosecutors are now pursuing both the embezzlement charges and the tax evasion, painting a picture of a deliberate and far-reaching criminal enterprise.
Under the terms of a plea agreement reached with federal prosecutors, Howland faces a recommended sentence of 18 to 36 months in prison. She also faces a substantial fine and is expected to be ordered to repay the full $598,241 she stole, along with the $180,863 in back taxes. The final sentence, however, will be determined by a federal district court judge after considering U.S. Sentencing Guidelines and other relevant factors.
The case was a joint effort by the U.S. Attorney’s Office, the Internal Revenue Service’s Criminal Investigations division, and the U.S. Secret Service’s Providence Office. Craig A. Marech, Resident Agent in Charge of the Secret Service office, highlighted the agency’s role in uncovering complex financial crimes like this. The New Bedford Police Department also provided support during the investigation.
Assistant U.S. Attorney Kristen A. Kearney, of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case. The charges of bank fraud carry a potential sentence of up to 30 years in prison, five years of supervised release, and a $1 million fine. Filing a false tax return carries a maximum sentence of three years in prison and a $100,000 fine. A plea hearing date has not yet been scheduled.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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