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Mass. woman pleads guilty to stealing more than $650k from medical practice

A 40-year-old woman who worked as an office manager at a Brookline medical practice pleaded guilty to a charge of wire fraud on Thursday in connection with a scheme to embezzle more than $650,000 from the practice, according to acting U.S. Attorney for Massachusetts Joshua S. Levy’s office.

Kathleen Libby, of Brookline, will be sentenced on Sept. 4, Levy’s office said.

Libby stole from the practice in several different ways, including by transferring money to a personal PayPal account she set up called “Medline Surgical Supplies.” The account name created the impression the transfers were expenses the practice incurred for medical supplies, according to a statement from Levy’s office.

Prosecutors say Libby also used the practice’s bank account to make payments toward purchases at a number of retailers, including luxury brands like Louis Vuitton. She also used the account for payments at Best Buy, Target and travel-related websites, according to the statement.

Libby also put two of her relatives on the practice’s payroll and used its credit cards for her own benefit, prosecutors said.

The charge of wire fraud carries a sentence of up to 20 years in prison, according to Levy’s office.

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