Local woman pleads guilty to fraud - Cincinnati News, FOX19-WXIX TV

Local woman pleads guilty to fraud

CINCINNATI, OH (FOX19) - An Amberley Village woman pled guilty in U.S. District Court to one count of mail fraud and one county of filing a false tax return.

Investigators say Karen S. Schmidt, 44, stole money from the medical practice where she worked as an office manager.

According to court documents, between May 2005 and November 2007, Schmidt charged personal purchases on company-owned credit cards, pocketed cash received from patients, and created false invoices which she sent to the company and paid them using company checks. As office manager, she attempted to conceal the fraud from auditors.

As part of the plea, Schmidt agreed to make restitution to her employer, Ohio Valley Orthopaedics. The plea agreement says the loss exceeds $120,000 but is less than $200,000. A more specific amount will be determined prior to sentencing.

Court documents say Schmidt admitted that she failed to report $38,298.09 taken from her employer on her 2005 federal income tax returns.

Mail fraud is punishable by up to 20 years imprisonment. Filing a false tax return carries a maximum penalty of not more than three years imprisonment, plus payment of any taxes owed plus penalties and interest.

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