Cumberland Woman Sentenced Prison for Filing a False Tax Return

DES MOINES, IA – Kathy Joan Cullen, 67, of Cumberland, Iowa, was sentenced to 18 months in federal prison for filing a false tax return on October 1, 2015, announced United States Attorney Nicholas A. Klinefeldt. Sentence was imposed by Chief Judge John A. Jarvey. Cullen also was ordered to serve one year of supervised release following her term of incarceration and was ordered to pay restitution in the amounts of $1,384,374.24 to 21st Century Cooperative; $422,411.35 to the Internal Revenue Service; and $131,040.64 to the State of Iowa.

Cullen had previously pleaded guilty to the charge. According to the plea agreement, Cullen embezzled money from her employer, 21st Century Cooperative. Cullen wrote over $1.3 million in checks to herself over a period of six years and deposited the proceeds into a personal bank account. Cullen admitted that she failed to account for the embezzled funds in her 2009 tax return.

This case was investigated by the Cass County, Iowa Sheriff’s Office and the Internal Revenue Service – Criminal Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.