Sunday, May 13, 2012

Kathe Rascher Charged With Million Dollar Fraud And Tax Evasion

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced that on Wednesday a federal grand jury in Sacramento returned an indictment against Kathe Rascher, 53, of Citrus Heights, charging her with 12 counts of mail fraud and five counts of tax evasion. Rascher was arrested today. She is scheduled for arraignment today before U. S. Magistrate Judge Kendall J. Newman at 2:00 p.m.

According to the indictment, Rascher, a bookkeeper for River Valley Insurance Associates Inc., defrauded her employer of more than $1.7 million and evaded paying income taxes owed to the Internal Revenue Service for the tax years 2004 – 2008.

The indictment alleges that Rascher wrote checks to herself and her family members from the River Valley bank account. In order to make it look like the checks were issued for legitimate expenses, she changed the name of the payees on the unauthorized checks in the accounting records, altered carbon copies of the checks, and created fictitious invoices. She also reviewed the monthly bank statements and cancelled checks sent to River Valley and deliberately removed and destroyed any returned unauthorized checks that had been issued to her and her family. The indictment also alleges that Rascher did not disclose the embezzled income obtained from River Valley on her federal tax returns for tax years 2004 and 2005 and did not file federal tax returns for tax years 2006, 2007, and 2008.

Report IRS Tax Fraud by Calling 1-888-482-6825 or by visiting

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