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Tennessee Woman Sentenced To Federal Prison For Embezzling Funds From Kentucky Business

A Clarksville, Tennessee, woman received a two-year federal prison sentence this week after being convicted on five counts of wire fraud involving a business located in Christian County, Kentucky.

Kathleen M. Michaelis, 50, was sentenced in federal court to two years in prison followed by two years of supervised release. She was also ordered to pay $291,470 in restitution. Because there is no parole in the federal system, Michaelis will serve the full term imposed by the court.

U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky and Special Agent in Charge Olivia Olson of the Federal Bureau of Investigation Louisville Field Office announced the sentencing in Paducah, Kentucky.

According to court documents, Michaelis worked as a bookkeeper for the Christian County company from May 2017 through May 2024. During those seven years, she embezzled more than $238,000 from her employer through a fraudulent check scheme and directed the stolen money toward her personal expenses.

Jail (Unsplash)
Jail (Unsplash)

Court records show Michaelis concealed the fraud by failing to forward employee paystub withholdings to the United States Treasury and the company’s retirement plan.

The FBI Bowling Green Satellite Office conducted the investigation leading to the prosecution.

READ: Texas Gang Member Gets 30 Years In Federal Prison For Sex Trafficking Teenager

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