Accountant admits embezzling $558K from Missouri health system foundation

A woman pleaded guilty June 4 to embezzling nearly $558,000 from Saint Luke's Foundation, a nonprofit organization that supports Kansas City, Mo.-based Saint Luke's Health System, according to the Department of Justice.

Saint Luke's Foundation employed Kathleen Frederico as an accountant for nearly 20 years before she was fired in February 2018. On June 4, Ms. Frederico admitted that she embezzled funds from the foundation from June 2003 through March 2017.

Ms. Frederico admitted she conducted two embezzlement schemes. In the primary fraud scheme, Ms. Frederico created unauthorized checks made payable to herself. The government alleged she embezzled the bulk of the funds — $452,342 — through this scheme.

Ms. Frederico also created unauthorized checks to pay her personal credit card bill and a relative's credit card bill. She embezzled at least $105,333 through this scheme, according to the Justice Department.

Under federal statutes, Ms. Frederico faces up to 20 years in federal prison. A date has not been set for her sentencing hearing.

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