Wednesday, April 6, 2016
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Belton, Mo., woman was sentenced in federal court today for embezzling $471,000 from her employer.
Kimberly Joyce Padgett, 43, of Osawatomie, Kan., formerly of Belton, was sentenced by U.S. District Judge Gary A. Fenner to two years and three months in federal prison without parole. The court also ordered Padget to pay $471,000 in restitution.
On Nov. 12, 2015, Padgett pleaded guilty to five counts of wire fraud. Padgett admitted that she embezzled approximately $471,000 from her employer, Reliant Financial Services in Kansas City, Mo. As part of Padgett’s duties at Reliant Financial Services, she managed the business’s books, paid the bills, managed the accounts receivable, operated the telephones, and prepared the paychecks. Padgett was also a signor on the business’s bank accounts and had use of the business’s credit cards for authorized business expenses. Padgett was terminated from employment in March 2015 when the fraud scheme was discovered.
During 2007 up to and including 2015, Padgett embezzled money from the Reliant Financial Services bank account intended for payroll tax and office supplies. Padgett wrote $350,000 in checks to herself and deposited those funds into her personal PayPal account and her husband’s bank account. Padgett used her PayPal account to pay for trips around America for herself, and at least once for a coworker, the coworker’s daughter, Padgett’s daughter, and others. She also used her company credit card in an unauthorized manner to support a lavish lifestyle by paying expenses for herself and others, including clothing, jewelry, gasoline, vacations, hotels, and restaurants.
From 2012 to 2015, Padgett made little to no payments in payroll taxes. Company owners had no knowledge the payroll taxes were not paid, and did not learn the taxes were not paid until they were contacted by the IRS.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Department of Justice
U.S. Attorney’s Office
Western District of Missouri
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