Sacto 9-1-1
November 2, 2012
Bookkeeper admits embezzling $1.7 million from employer

A Citrus Heights woman has admitted defrauding her employer of more than $1.7 million.

Kathe Rascher, 53, pleaded guilty today in federal court in Sacramento to one count of mail fraud and one count of tax evasion, according to a Department of Justice news release.

According to the plea agreement, Rascher, a bookkeeper for River Valley Insurance Associates Inc., defrauded the firm of more than $1.7 million and failed to disclose the embezzled income in May 2006, when she filed her federal tax returns for the years 2004 and 2005.

Rascher wrote checks to herself and family members from the River Valley bank account, according to court documents. To make it appear that the checks were issued for legitimate expenses, she changed the name of the payees on the unauthorized checks in the accounting records, altered carbon copies of the checks and created fictitious invoices.

Authorities said Rascher also reviewed the monthly bank statements and canceled checks sent to River Valley, and deliberately removed and destroyed any returned unauthorized checks that had been issued to her and her family.

Rascher it to be sentenced Jan. 18 by U.S. District Judge Garland E. Burrell Jr.

The case resulted from an investigation by the Internal Revenue Service-Criminal Investigation.

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