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Press Release

Brookline Woman Charged With Embezzling More Than $650,000 From Medical Practice

For Immediate Release
U.S. Attorney's Office, District of Massachusetts
Defendant allegedly used business’ bank account for payments toward luxury retail purchases

BOSTON – A former office manager of a Brookline medical practice was charged today with embezzling over $650,000 from the business over several years.

Kathleen Libby, 40, of Brookline, was charged with one count of wire fraud.

According to the charging documents, 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 allegedly created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.

It is further alleged that 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. The charging documents also allege that Libby 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.

The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Updated May 1, 2024

Financial Fraud