Massachusetts

Employee charged with embezzling $650K from Brookline medical practice, using funds for luxury purchases

Kathleen Libby, 40, of Brookline, allegedly used the funds to pay off her purchases at Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites

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View of the John Joseph Moakley United States Courthouse where Air National Guardsman Jack Teixeira of the Massachusetts Air National Guard’s 102nd Intelligence Wing is expected to plead guilty later today in Boston, Massachusetts on March 4, 2024. Prosecutors requested a change of plea hearing for March 4, at which Teixeira will confirm his decision to reverse his current plea of not guilty. The Massachusetts Air National Guard IT specialist was arrested in April for allegedly orchestrating the most damaging leak of US classified documents in a decade, some of which concerned the war in Ukraine. (Photo by Joseph Prezioso / AFP)

A Massachusetts woman is charged with embezzling over $650,000 from a Brookline medical practice and using the funds to pay off her personal purchases at Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites, according to the U.S. Attorney's Office for Massachusetts.

Kathleen Libby, 40, of Brookline, was charged Wednesday with one count of wire fraud, the U.S. Attorney's Office said. She formerly worked as the office manager for the medical practice she allegedly stole from.

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" so it looked like transfers from the medical practice to the PayPal account were for legitimate expenses for supplies.

In addition to using the medical practice's bank account to make payments toward her own purchases, she placed two of her relatives on the practice's payroll and used its credit cards for her own personal benefit.

The wire fraud charge carries a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or more.

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