KANSAS CITY, Mo. – Kathleen Frederico, a 51-year-old Kansas City woman, pleaded guilty today in federal court to embezzling almost $558,000 from the health care foundation where she served as an accounting and special projects manager.
Frederico, who waived her right to a grand jury, admitted to one count of wire fraud before U.S. District Judge Greg Kays. She was terminated from her position at Saint Luke’s Foundation in February 2018 after working there for nearly two decades.
The defendant’s fraudulent activities began in June 2003 and continued until March 29, 2017. According to the government’s evidence, Frederico stole a total of $557,675 from the foundation, using the funds for shopping, travel, internet drug purchases, and other personal expenses.
The primary scheme involved creating unauthorized checks made out to herself, which were then concealed in the general ledger by entering different payees. This method alone embezzled at least $452,342 from the foundation. Frederico also authorized payments to her personal credit card and on two occasions to a relative, siphoning an additional $105,333.
Under federal statutes, Frederico faces up to 20 years in federal prison without parole. A sentencing hearing will be scheduled following a presentence investigation by the United States Probation Office.
The case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney and investigated by the FBI.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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