Former Somerset Pulaski County Development Foundation Manager Pleads Guilty to Wire Fraud

For Immediate Release

U.S. Attorney's Office, Eastern District of Kentucky

LONDON, Ky. – A Somerset, Ky., woman, Lisa G. Gadberry, 51, pleaded guilty on Monday, before U.S. Magistrate Judge Hanly A. Ingram, to wire fraud.   

 According to her plea agreement, from November 5, 2012, through May 15, 2019, while employed as the Secretary/Office Manager for the Somerset Pulaski County Development Foundation, Gadberry devised a scheme to defraud the organization by means of materially false and fraudulent representations and promises.  Specifically, Gadberry utilized the SPCDF credit card for numerous unauthorized personal expenses, including personal vacations, retail purchases, gasoline, electricity, cell phone, restaurants, and entertainment expenses, and concealed her scheme by paying the bill out of an account the Pulaski Fiscal Court, the SPCDF Board, and the CPA for SPCDF did not regularly control or monitor.  In total, Gadberry charged $142,874.69 in personal charges to the card.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.

The investigation was conducted by the FBI.  Assistant U.S. Attorney Kate Smith is prosecuting the case on behalf of the United States.

Gadberry will be sentenced on a date yet to be scheduled by the Court.  She faces a maximum of 20 years in prison.  Gadberry will also be required to pay a $142,874.69 money judgement.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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