Jefferson City, Missouri (KMIZ)
A grand jury indicted a Boone County business owner Thursday on one count of $1.5 million in fraud and embezzlement.
On December 12, Kathryn L. Cunningham, 62, was indicted on 38 counts by a Jefferson City grand jury. 13 But the indictment was unsealed this week. Cunningham, of Roshport, was arrested Thursday and is scheduled to make his first court appearance that afternoon, according to a release from the Jefferson City U.S. Attorney’s Office.
She was the former owner and CEO of payroll firm Moresource, which closed in 2020 with about 140 clients, according to a press release.
The indictment alleges that Cunningham misappropriated payroll accounts held for corporate clients. Cunningham stole about $1.5 million for personal gain and to run the company, the U.S. Attorney’s Office said.
Cunningham also illegally used company funds for personal purposes, the release said. The indictment alleges that Cannigum also fraudulently obtained secured loans and lines of credit from the Small Business Administration. She used the money several times to cover up her misappropriation.
She also stopped timely and accurate filings with the IRS and stopped regularly paying clients’ payroll taxes to the IRS, the indictment said. According to the indictment, Cunningham also misappropriated public funds from an organization called Abilities for Business, Inc. (later known as the Mid-Missouri Business Leadership Network, Inc.).
Cunningham was charged with 24 counts of bank fraud, four counts of theft from an organization that received federal funds and 10 counts of wire fraud.