Trial dates set for Columbia businesswoman indicted for allegedly defrauding clients
JEFFERSON CITY, Mo. (KMIZ)
Trial dates have been set for a Columbia business woman accused of fraud and embezzlement.
Kathryn L. Cunningham, known as Kat, 62, was charged with a total of 38 counts by a grand jury Dec. 13 in Jefferson City. Cunningham, of Rocheport, is charged with 24 counts of bank fraud, four counts of stealing from an organization that receives federal funds and 10 counts of wire fraud. She pleaded not guilty on Jan. 5.
A pretrial conference is set for 2 p.m. Tuesday, Aug. 29 in Jefferson City. A jury trial is scheduled for 8 a.m. Monday, Sept. 25.
Cunningham is the former owner and CEO of payroll company Moresource, which had about 140 clients when it closed in 2020, according to the release.
The indictment alleges Cunningham embezzled 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, the U.S. attorney's office says.
Cunningham also illegally used company funds for personal purposes, a January press release stated. The indictment stated Cunnigham also fraudulently obtained a guaranteed loan and line of credit from the Small Business Administration. She used the money to cover up her embezzlement multiple times.
She also stopped making timely and accurate filings with the IRS and stopped making regular payments to the IRS on her clients' payroll taxes, the indictment alleges. Cunningham also embezzled from the organization called Abilities for Business, Inc., later known as Mid-Missouri Business Leadership Network, Inc., according to the indictment.
