The U-S Attorney’s Office for the Southern District of Iowa reports a Cumberland woman was sentenced Thursday to 18 months in prison for failing to report funds to the IRS that she embezzled from her employer. 67-year old Kathy Joan Cullen was ordered to serve one year of supervised release following her term of incarceration and was ordered to pay restitution in the amounts of  more than 1.38-million dollars ($1,384,374.24 to be exact), to 21st Century Cooperative. Cullen is also required to pay $422,411 to the Internal Revenue Service, and $131,040 to the State of Iowa.

Cullen had previously pleaded guilty to the charge. According to the plea agreement, Cullen embezzled money from her employer, 21st Century Cooperative. Cullen wrote over $1.3 million in checks to herself over a period of six years and deposited the proceeds into a personal bank account. Cullen admitted that she failed to account for the embezzled funds in her 2009 tax return.

The case was investigated by the Cass County, Iowa Sheriff’s Office and the Internal Revenue Service – Criminal Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.