Former U of Kansas Medical Center administrator gets 2 years in prison for stealing $556K

A former administrator from the University of Kansas Medical Center in Kansas City received a two-year prison sentence for embezzling more than $556,000 from the medical center, the U.S. Justice Department said June 23.

Michael Tae Kim Ahlers, 49, pleaded guilty to bank fraud and tax evasion related to the embezzlement in February. In addition to the prison sentence, Mr. Ahlers was ordered to pay $680,000 in restitution and will have three years of supervised release following the prison term. 

Mr. Ahlers was the administrative officer for the occupational therapy education department at the medical center. He was responsible for conducting administrative tasks and financial transactions, such as purchasing, billing and grant management, for the department.

Prosecutors said Mr. Athlers used his position to steal the money between 2009 and 2015 and spent the funds on personal expenditures, including gambling, traveling, golf membership and sports tickets.

In an effort to conceal the scheme, Mr. Athlers allegedly took steps to circumvent the university's finance and audit department. Prosecutors said he deposited funds into a credit union account rather than forwarding them to the medical center's institutional finance and administration department, allowing him to avoid oversight.

Mr. Ahlers also failed to include the embezzled funds on his federal tax returns, prosecutors said.

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