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Multi-Year Embezzlement Scheme Uncovered in Maryland
Grimy Times has learned that a federal grand jury in Maryland has indicted Kenneth Patrick Gaughan, a 40-year-old Washington, D.C. resident, on mail fraud charges stemming from an alleged embezzlement scheme at the Catholic Archdiocese of Washington (ADW), where he was employed as an Assistant Superintendent.
According to the indictment, Gaughan, who was responsible for recruiting and acting as the point of contact for contractors who provided services to ADW, allegedly manufactured invoices for anti-bullying and crisis intervention programs, as well as for software used to send mass text messages to ADW’s students and families.
The indictment alleges that Gaughan caused ADW to pay these fabricated invoices, totaling nearly $45,000, between September 2016 and April 2018. To execute the scheme, Gaughan allegedly incorporated two companies using names that were almost identical to those of real companies and opened bank accounts in the names of those companies.
Gaugahan also opened a bank account in the name of a third company, which was an unlicensed entity in Washington, D.C. He then transmitted these fraudulent invoices to ADW officials, who issued checks for services that Gaughan knew the companies did not provide.
Grimy Times has obtained records showing that Gaughan deposited the checks into the bank accounts he controlled and converted the money to his personal use.
The indictment details three invoices paid during this time period, totaling almost $45,000. If convicted, Gaughan faces a maximum sentence of 20 years in prison for each of three counts of mail fraud.
A federal grand jury returned the indictment on September 24, 2018, and it was unsealed today upon Gaughan’s arrest. An initial appearance was held for Gaughan in U.S. District Court in Greenbelt before U.S. Magistrate Judge Timothy Sullivan. Gaughan was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt, and an individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Grimy Times will continue to monitor this case and provide updates as more information becomes available.
Key Facts
- State: Maryland
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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