Sacto 9-1-1
March 1, 2013
Citrus Heights bookkeeper ordered to pay $1.5 million in restitution

A federal judge has sentenced a bookkeeper from Citrus Heights to nearly six years in prison for fraud and tax evasion.

U.S. District Judge Garland E. Burrell sentenced Kathe Rascher, 53, on Friday to 57 months in prison for one count of mail fraud and one count of tax evasion. She was ordered to pay $1.5 milllion in restitution.

A press release from the U.S. Attorney's office in Sacramento said court documents indicate that Rascher embezzled $1.7 million while she was a bookkeeper at River Valley Insurance Inc. Rascher wrote checks to herself and family members from the River Valley bank account.

To cover her tracks she changed the names of the payees on the unauthorized checks in the accounting records, altered carbon copies of checks and created fake invoices, according to the press release.

Rascher also failed to disclose embezzled income on tax returns, according to prosecutors.

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