Brookline Woman Sentenced to 21 Months in Prison for Embezzling More Than $650,000 From Medical Practice

Press Release

Defendant used business' bank account for luxury retail purchases

BOSTON - A former office manager of a Brookline medical practice was sentenced today for embezzling over $650,000 from the practice over several years.

Kathleen Libby, 40, of Brookline, was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison to be followed by two years of supervised release. Libby was also ordered to pay restitution and forfeiture in the amount of $658,271. In May 2024, Libby pleaded guilty to one count of wire fraud.

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 created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.

In addition, 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. Libby also placed two of her relatives on the medical practice's payroll and used its credit cards for her own personal benefit.

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 Criminal Division prosecuted the case.

Updated September 13, 2024