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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Texas

Wednesday, September 4, 2019

Treasurer Sentenced to Federal Prison for Embezzling Funds from the Medina Lake Betterment Association

In San Antonio today, a federal judge sentenced former Treasurer Kenneth Edward Gilmore, 77 of Lakehills, TX, to 27 months in federal prison for stealing at least $177,000 from the Medina Lake Betterment Association (Medina), announced U.S. Attorney John F. Bash.

In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Gilmore pay $177,000 in restitution and be placed on supervised release for a period of three years after completing his prison term.

On April 2, 2019, Gilmore pleaded guilty to one count of wire fraud.  By pleading guilty, Gilmore admitted that beginning in 2008 until 2016, he devised a scheme to steal organization funds and use them for his own personal benefit.

“Gilmore lied to Medina board of directors, officers and supporters by providing false treasury reports, omitting material facts and concealing the charitable organization’s actual financial status,” stated U.S. Attorney Bash.  “His criminal actions left the non-profit organization nearly bankrupt.” 

The FBI and the Texas Department of Public Safety investigated this case.  Assistant U.S. Attorneys William R. Harris and James K. Blankinship prosecuted this case on behalf of the Government. 

Financial Fraud
Updated September 4, 2019