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Prosecutors: Ex-KUMC employee embezzled more than $500K

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Posted at 2:48 PM, Feb 09, 2021
and last updated 2021-02-09 15:48:08-05

KANSAS CITY, Kan. (AP) — A former University of Kansas Medical Center administrator has pleaded guilty to bank fraud in a scheme that saw him embezzle more than $500,000 from the institution, federal prosecutors for Kansas said.

Michael Tae Kim Ahlers, 49, of Lenexa, was the administrative officer for the occupational therapy education department at KUMC in Kansas City from 2009 through 2015, when he stole more than $500,000 for his personal use, federal prosecutors said Tuesday in a news release.

Investigators said Ahlers deposited the funds into a KUMC Credit Union account that allowed him to avoid the oversight he would have had if he had deposited the money into a state-controlled bank account. Ahlers also created invoices outside of the normal system, which prevented others within KUMC from learning about the credit union account and Ahlers' use of it for personal gain, investigators said.

Because Ahlers failed to include embezzled funds on his federal tax returns, he also pleaded guilty to filing a false tax return, prosecutors said.

Ahlers is set to be sentenced on May 13.