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Published on May 01, 2024
Brookline Office Manager Charged with Embezzling $650,000 From Medical Practice for Personal SpendingSource: Unsplash/ Mackenzie Marco

A Brookline woman is facing charges after federal authorities say she funneled more than $650,000 from a local medical practice's coffers into her own lavish lifestyle. Kathleen Libby, 40, stands accused of wire fraud, which could land her in prison for a considerable stretch if she's found guilty.

Investigators claim that Libby, the office manager of the unnamed medical practice, used a PayPal account called "Medline Surgical Supplies" to hide her theft as regular business expenses. This scheme allegedly enabled her to divert large amounts of money into her own accounts, as per court documents.

According to the U.S. Attorney's Office, Libby allegedly used the embezzled funds for lavish shopping sprees at luxury and tech stores like Louis Vuitton and Best Buy, as well as at common retailers such as Bloomingdale's and Target, and various travel websites. Additionally, her relatives reportedly benefited from the scheme, with some receiving positions on the practice's payroll and enjoying its credit card perks without contributing to the business.

Wire fraud carries a potential sentence of up to 20 years in prison, along with three years of supervised release, and a fine of up to $250,000 or double the embezzled amount, whichever is greater. Despite the serious charges, Libby is presumed innocent until proven guilty. Assistant U.S. Attorney Mackenzie A. Queenin, who leads the Securities, Financial & Cyber Fraud Unit, is handling her case.