Accountant headed to prison for embezzling $547K from Missouri health system foundation

Kathleen Frederico was sentenced Nov. 12 to more than two years in prison after pleading guilty in June to embezzling nearly $547,000 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 Ms. Frederico as an accountant for nearly 20 years before she was fired in February 2018. In June, she admitted embezzling 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 — $441,268 — through this scheme.

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

In addition to her prison term, Ms. Frederico was ordered to pay $546,603 in restitution.

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