A federal grand jury for the Southern District of Illinois returned a 10-count indictment charging Kathleen M. Dvorak, 60, of O’Fallon, with conducting a large, multi-year fraud scheme.
The indictment alleges that from 2012 through 2019, while working as a private bookkeeper, Dvorak embezzled more than $1 million from her client-victim in two primary ways:
(1) by writing large checks, payable to herself, that were drawn on the victim’s bank account; and (2) by taking large amounts of cash back for herself when she deposited checks payable to the victim into his bank accounts.
According to the indictment, Dvorak concealed her fraud from the victim by making false entries into his QuickBooks accounting program.
Dvorak's client, according to a civil lawsuit filed in St. Clair County in February is retired Memorial Hospital emergency medicine physician Dr. Thomas F. Byrne, 72, who's now living in Florida.
The lawsuit says that Byrne hired Dvorak in 2005 to perform part time credentialing work, and having been satisfied with that work, allowed her to perform bookkeeping services for him in 2009. She eventually became signatory on his financial accounts and allegedly became "intimately familiar" with his business transactions and dealings.
Byrne alleges in his suit that Dvorak stole $1.68 million.
The federal court indictment announced on Aug. 21 charges Dvorak with five counts of wire fraud and five counts of bank fraud. Each wire fraud count carries a maximum sentence of 20 years in prison and a fine of up to $250,000.
The bank fraud charges each carry a maximum prison sentence of 30 years in prison and a fine of up to $1 million.
The indictment also requests that a forfeiture judgment be entered against Dvorak in the amount of $1,523,719.08.
Dvorak is scheduled to be arraigned at 10 a.m. on Sept. 10 at the federal courthouse in East St. Louis.
The investigation was conducted by agents from the FBI Springfield Division, Fairview Heights Resident Agency. The case is being prosecuted by assistant U.S. attorney Scott A. Verseman.