WICHITA, KAN. – A Kansas woman was sentenced today to 48 months in prison for bank fraud and tax fraud in connection to a scheme to defraud her former employers of millions of dollars.
In May 2022, Nancy Martin, 78, of Wichita pleaded guilty to one count of bank fraud and one count of aid or assist filing a false tax document. Martin defrauded Mid-Kansas Wound Specialists and Emergency Services P.A. for whom she worked as a bookkeeper, business manager, and chief operating officer. Between 2012 to 2017, Martin embezzled approximately $3.1 million by fraudulently obtaining money from her employers’ banks meanwhile falsifying accounting entries to disguise the embezzlement as payments or transferred funds between entities. Martin spent the stolen funds on personal expenses, travel, and investments.
From 2013 to 2016, Martin either filed tax returns or caused tax returns to be filed to the Internal Revenue Service that omitted income.
In addition to the 48 months in prison, a federal judge ordered Martin to pay more than $3.2 million in restitution to the victims and approximately $670,000 in restitution to the IRS.
“For years Nancy Martin abused her employment position and betrayed the trust of her employers to steal millions of dollars from them, and for that reason she is going to prison,” said U.S. Attorney Duston Slinkard. “The role of the prosecution was to seek justice and try to help victims recover their financial losses.”
“IRS Criminal Investigation was able to see through Ms. Martin’s sophisticated embezzlement scheme in order to bring justice to the victims involved,” said St. Louis Field Office Acting Special Agent in Charge Thomas Murdock. “Ms. Martin’s prison time sends a clear message that bank fraud and tax fraud have serious consequences.”
The IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Aaron Smith prosecuted the case.