Crime

Leawood businesswoman sentenced to prison for tax evasion

Kathleen M. Stegman, 58, diverted hundreds of thousands of dollars from her company, Midwest Medical Aesthetics, for her own personal use, U.S. Justice Department officials said Wednesday.
Kathleen M. Stegman, 58, diverted hundreds of thousands of dollars from her company, Midwest Medical Aesthetics, for her own personal use, U.S. Justice Department officials said Wednesday.

A Leawood businesswoman has been sentenced to more than four years in prison for evading taxes while living a lavish lifestyle.

Kathleen M. Stegman, 58, diverted hundreds of thousands of dollars from her company, Midwest Medical Aesthetics, for her own personal use, U.S. Justice Department officials said Wednesday.

She was sentenced Tuesday to four years and three months in federal prison, fined $100,000 and ordered to pay $68,000 in restitution to the Internal Revenue Service.

At her trial earlier this year, prosecutors presented evidence that she provided false information during an IRS investigation and had an employee destroy company records.

Prosecutors said Stegman used company money to buy condominiums in Las Vegas, real estate in North Carolina, a 54-foot yacht and $300,000 in gold coins.

Justin Gelfand, attorney for Stegman, said in a written statement that his client was acquitted of four of the six charges she faced.

“We are appealing the only two counts of conviction and believe we have a strong case,” he said.

Tony Rizzo: 816-234-4435, @trizzkc

This story was originally published October 19, 2016 at 11:45 AM with the headline "Leawood businesswoman sentenced to prison for tax evasion."

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