http://www.digitaljournal.com/article/305321

Kansas City - Karen L. Pletz appeared to have it made. The 63 year old Kansas City, Missouri woman was the president and CEO of Kansas City University of Medicine and Biosciences (KCUMB) from 1995 until the end of 2009.

The F.B.I. is alleging that she was also pocketing over $1.5 million by embezzlement from that university.

On Wednesday Pletz was charged in a 24-count indictment that includes charges of tax violations and money laundering. The investigation had been under seal by a federal grand jury that was lifted on Thursday according to a F.B.I. report.

According to the report Pletz is facing 16 counts of stealing directly from the university, one count of attempting to interfere with the administration of internal revenue, three counts of making false statements on tax returns and four counts of money laundering.

KCUMB appears to have taken the biggest hit with nine 'leadership stipends' that generally were in $65,000 lump sum payments. Pletz is alleged to have created minutes for nine fake KCUMB executive committee meetings authorizing these payments for October 2002 until December 2009. The total sum of these payments was $1,409,500.

In addition to these payments it is being alleged that the CEO submitted fraudulent vouchers to obtain reimbursements from the university for business purposes that were in fact for her personal travel and entertainment. These vouchers included trips to visit her parents, friends and a $11,846 reimbursement for items purchased at a Vera Wang boutique at Halekulani Hotel in Honolulu, Hawaii. Pletz did not include these payments that totaled $1,074,917 as put of her income on federal income tax reports. The tax loss to the nation was at least $280,000.

Pletz is also said to have claimed fraudulent donations to United Way, Lyric Opera, the Deron Cherry Foundation, Boys and Girls Clubs, and Truman Medical Center and other groups totaling over $565,000.

On of the most brazen claims concerns Benedictine College in Atchinson, Kan. It is reported that in February 2004 Pletz pledged $20,000 to the educational institution requesting that Benedictine use her home address for all correspondence regarding the gift. In March of that year she sent a personal cheque of $20,000 payable to the college for which KCUMB reimbursed her for. Benedictine never received the cheque but under direction of Pletz charged Pletz’s KCUMB credit card $10,000 in two installments. The CEO used these donations on her income tax report but failed to claim the money she had been given back by the university.

Pletz is also facing four counts of money laundering stemming from alleged transferred funds by theft from her bank account to American Express or, on one occasion, to an individual for the purchase of antiques.

On October 7, 2010 federal agents seized a 2002 Lexus convertible and $39,337 from her bank account. The indictment requires that Pletz forfeit these items. In addition Pletz is to forfeit an $830,000 money judgment and Pletz’s condominium on the Plaza.

Beth Phillips, United States Attorney for the Western District of Missouri, cautions that the charges are accusations at this time and not evidence of guilt. The charges will be presented to a federal trial jury who will determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorneys Kate Mahoney and Linda Parker Marshall.