Former Administrative Assistant to Children's Charity Charged with Embezzlement and Tax Fraud, Reports U.S. Attorney

6 October 2006

A former secretary and administrative assistant at the Children's Glaucoma Foundation was charged today in federal court with operating a scheme to defraud the non-profit foundation and its founder.

United States Attorney Michael J. Sullivan and Kenneth W. Kaiser, Special Agent in Charge of the Federal Bureau of Investigation in New England, announced today that KAREN L. SICHER, age 45, of 6 Haroun Lane, Methuen, Massachusetts, was charged in an Information with ten counts of uttering forged securities, ten counts of health care program theft, and six counts of income tax evasion.

The Information alleges that, while employed as a secretary and administrative assistant to a surgeon in Ophthalmology at the Massachusetts Eye and Ear Infirmary, SICHER engaged in a scheme to defraud the doctor and a charitable foundation headed by the doctor, the Children's Glaucoma Foundation.

It is alleged that SICHER accomplished her scheme to defraud the doctor in a number of ways: by forging his endorsement on medical reimbursement checks made payable to him and depositing those checks into her personal bank account; by diverting the proceeds of patient payments made by check payable to the doctor; and by taking for her personal use co-payments made in cash by patients.

It is alleged that SICHER accomplished the theft from the Foundation in a number of ways as well: by forging the signature of the doctor on blank Foundation checks, making them payable to herself, and depositing them into her personal bank account; by diverting donations made by personal check payable to the Foundation by depositing them into her personal bank account; and by taking for her personal use cash donations to the Foundation.

As a result of her fraudulent schemes, it is alleged that SICHER embezzled a total of at least $500,000 from the doctor and the Foundation between September 2000 and November 2005. According to the Information SICHER primarily used the stolen funds to shop and gamble.

If convicted, SICHER faces a maximum sentence of 10 years' imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine.

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Linda M. Ricci of Sullivan's Economic Crimes Unit.

The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: prnewswire

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