Kim Weinrich, a former payroll official for Mustang Public Schools in Oklahoma, has been sentenced to an 18-month stint in federal prison for wire fraud and filing a false tax return, as announced by U.S. Attorney Robert J. Troester. The 68-year-old from Mustang manipulated school payroll systems to inflate her paychecks and underreport taxes between July 2016 and April 2022, a scheme that swindled the school district out of roughly $470,000, as reported by the U.S. Attorney's Office.
During her tenure, which included a promotion to Director of Payroll Services in 2021, Weinrich had the primary responsibility for handling the bi-monthly payroll for the district's employees but used this position to dishonestly increase her own net pay, this led to several employees inadvertently underreporting their withholdings, affecting their tax returns, according to the U.S. Attorney's Office. "Simply put, Weinrich stole taxpayer money intended for the benefit of students, families, and employees of Mustang Public Schools," Troester said in a statement obtained by the U.S. Attorney's Office for the Western District of Oklahoma.
The former director also manipulated payroll accounting software to create the illusion of having paid considerable amounts in federal income taxes when, in reality, she had withheld none. In her 2022 tax filing, Weinrich reported an income that was significantly less than what she had illicitly obtained through her fraudulent activities.
Weinrich was charged last December and promptly entered a guilty plea, where she admitted to adjusting payroll amounts in her favor, making it seem as if she were paying substantial taxes, and filing a false tax return that declared an income of only $91,295, although she knew full well it was substantially more, this was revealed in proceedings that showcased the depth of her deceit and the long-term impact it had on the school district's funds. Weinrich's sentencing on July 30, not only included prison time but also stipulated three years of supervised release and a restitution payment totaling $595,970.21, of which $470,385.21 is owed to Mustang Public Schools and $125,585 to the IRS, as detailed by the U.S. Attorney's Office.
The investigation, led by IRS Criminal Investigation and the United States Secret Service, concluded with Assistant U.S. Attorney Cole McFerren prosecuting the case. The court highlighted the significant amount embezzled by Weinrich, marking the end of a lengthy legal process that brings some measure of justice to the impacted Mustang Public Schools community, as per the U.S. Attorney's Office.
