Feds recommend 18-month prison sentence for Columbia businesswoman who defrauded clients

COLUMBIA, Mo. (KMIZ)

The federal government is recommending that a Columbia businesswoman who pleaded guilty to wire fraud and not paying payroll taxes should serve an 18-month prison sentence.

Kathryn L. Cunningham pleaded guilty in May 2025 to those felony counts. She was previously charged with 38 felonies.

Cunningham is the former owner and CEO of payroll company Moresource, which had about 140 clients when it closed in 2020, according to previous reporting.

Cunningham was accused of embezzling from the payroll account that was held in trust for the company's clients. Cunningham stole about $1.5 million for her personal benefit and to run her company, previous reporting indicates.

Court documents filed in the case on Friday claim gambled away payroll deposits at Isle of Capri Casino.