Friday, January 22, 2010

New Mexico Woman Charged In $3.4 Million School Embezzlement Scheme

Kathy Borrego, 51, of Abiquiu, New Mexico, has been chargd with embezzling nearly $3.4 million from Jemez Mountain Schools in Galina, New Mexico, where she had been employed as business manager. Prosecutors allege that Borrego wrote at least 538 checks to herself, her boyfriend and her daughter over a seven year period, totalling $3,378,701. She faces six counts of embezzlement, one count of improper use of official anthems and four counts of tax evasion. Borrego also faces a civil suit filed by the school district to freeze her assets and recover the monies. According to reports, Borrego began working at the school district in 1999, but auditors were unable to access necessary bank records to probe the district's finances for the first three years she worked there. The small, New Mexican school district has only 375 students.

Read the story here, here and here.

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