Brookline Woman Pleads Guilty to Embezzling More Than $650,000 from Medical Practice

BOSTON – A former office manager of a Brookline medical practice pleaded guilty today to embezzling over $650,000 from the practice over several years.

Kathleen Libby, 40, of Brookline, pleaded guilty to one count of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 4, 2024.

Libby stole from the medical practice in a variety of ways, including by transferring funds from the practice to a personal PayPal account she established named “Medline Surgical Supplies.” In doing so, Libby created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.

In addition, Libby used the medical practice’s bank account to make payments toward purchases she had made at a variety of retailers, including Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites. Libby also placed two of her relatives on the medical practice’s payroll and used its credit cards for her own personal benefit. 

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.