Boston/ Crime & Emergencies
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Published on May 24, 2024
Brookline Woman Pleads Guilty to Embezzling Over $650,000 from Medical Practice for Luxury Buys Source: Unsplash/ Alexander Grey

A Brookline woman has copped to sticky fingers after fleecing a medical practice of over $650,000 for luxury splurges. Kathleen Libby, 40, entered a guilty plea to a wire fraud charge, admitting to her years-long shopping spree on the medical practice's dime, the U.S. Attorney's Office announced yesterday.

Caught red-handed, the former office manager at the Brookline establishment, orchestrated a scheme where she funneled cash from the practice's accounts to shell out on labels like Louis Vuitton and trips booked through travel sites. She also sneakily added two of her relatives to the payroll, guiding their salaries from the pockets of her unsuspecting employer.

Judge Leo T. Sorokin is slated to hand down Libby's sentence on Sept. 4, 2024, which could land her up to 20 years in the slammer for her high-end heists. The wire fraud charge can also stick her with three years of supervised release and a hefty fine—up to $250,000 or double the ill-gotten gains, whichever hurts more.

Acting U.S. Attorney Joshua S. Levy, along with Jodi Cohen, the top Fed in the FBI's Boston branch, pulled the curtain back on Libby's luxury binge. Having made the payments toward purchases that included tech from Best Buy, threads from Bloomingdales, and various other retail delights, Libby's fraudulent feast came with an expensive taste that ultimately led to her downfall.

Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit has the reins on the prosecution, which follows an investigation by the feds. According to the statement obtained by the U.S. Attorney's Office, "Libby created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies."