Kansas Bookkeeper Pleads Guilty to Bank Fraud

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FILE PHOTO: Signage is seen at the United States Department of Justice headquarters in Washington, D.C.

WICHITA, KAN. – A Kansas woman pleaded guilty in connection to a scheme to defraud her former employers of millions of dollars.  

According to court documents, Nancy Martin, 77, of Wichita pleaded guilty to one count of bank fraud and one count of aid or assist filing a false tax document. Martin admits to defrauding her employers Mid-Kansas Wound Specialists and Emergency Services P.A. She worked for the businesses as a bookkeeper, business manager, and chief operating officer. An audit revealed that from 2012 to 2017, Martin embezzled approximately $3.1 million by fraudulent obtaining money from her employers’ banks. She used funds to pay for personal expenses, travel, and investments then made false accounting entries to disguise the embezzlement as payments or transferred funds between entities.

From 2013 to 2016, Martin either filed tax turns or caused tax returns to be filed to the Internal Revenue Service that omitted income, therefore, causing a tax loss to the IRS of approximately $670,000.

“IRS Criminal Investigation is committed to unravelling the most complicated embezzlement and tax schemes,” said William Steenson, Assistant Special Agent in Charge, IRS Criminal Investigation.  “Ms. Martin’s guilty plea shows IRS-CI’s commitment to protecting the healthcare system and all those who work tirelessly to promote the welfare for all.”

Martin is scheduled to be sentenced on August 17 and faces a maximum penalty of 30 years in prison for bank fraud and a maximum of three years in prison for aid or assist filing a false tax document. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The IRS-Criminal Investigation is investigating the case.

Assistant U.S. Attorney Aaron Smith is prosecuting the case.

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