O'FALLON - A federal grand jury for the Southern District of Illinois has returned a ten-count indictment charging Kathleen M. Dvorak, 60, of O’Fallon, Illinois, with conducting a large, multi-year fraud scheme.
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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.
The indictment 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.
The arraignment for Dvorak will be conducted on September 10, 2020, at 10:00 a.m. at the federal courthouse in East St. Louis, Illinois. An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury. The investigation was conducted by agents from the FBI Springfield Division, Fairview Heights Resident Agency. The case is being prosecuted by Assistant United States Attorney Scott A. Versem.
