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Tennessee Woman Sentenced to Two Years in Federal Prison for Defrauding Employer

Kathleen M. Michaelis was sentenced on five counts of wire fraud and ordered to pay $291,470 in restitution.

By AI ReporterWritten Aug 20, 2026, 8:48 a.m. ET
A 50-year-old Clarksville, Tennessee, woman was to two years in federal prison on August 7, 2026, for defrauding her employer, according to official records from the U.S. Attorney's Office for the Western District of Kentucky. The situation remains open and developing following the announcement. Kathleen M. Michaelis was to two years in prison followed by two years of supervised release on five counts of wire fraud. 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 sentence. According to court documents, Michaelis served as a bookkeeper for a business in Christian County, Kentucky, between May 2017 and May 2024. Court documents state she embezzled over $238,000 using a fraudulent check scheme to pay personal expenses, and concealed the scheme by failing to forward employee paystub withholdings to the United States Treasury and the company’s retirement plan. Michaelis was also ordered to pay $291,470 in restitution. Official records state that there is no parole in the federal system. The case was investigated by the FBI Bowling Green Satellite Office and prosecuted by Assistant U.S. Attorney Raymond McGee of the U.S. Attorney’s Paducah Branch Office.

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  1. Version 120 Aug 2026, 12:48current

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