Brookline Woman Accused Of $650K Medical Office Theft Pleads Guilty

BROOKLINE, MA — A Brookline woman accused of transferring $650,000 from the medical business where she was an office manager to a personal PayPal account she used to make designer and travel purchases pleaded guilty to a charge of wire fraud in federal court on Thursday, according to the U.S. Attorney's Office.

Kathleen Libby, 40, pleaded guilty to one count of wire fraud. She is scheduled for sentencing on Sept. 4.

Libby was accused of stealing from the medical practice by transferring the funds to her personal account under the guise that they were to be used for medical devices. Instead, prosecutors said, she used the money to buy personal items at Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites.

She is also accused of putting two of her relatives on the medical practice's payroll and using the business credit cards for her benefit.

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.