Former Ky. insurance exec sentenced in embezzling scheme

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LOUISVILLE, Ky. (AP) – A former chief financial officer of a Louisville insurance company has been sentenced to 37 months in federal prison for tax evasion and embezzlement.

A federal judge ordered 63-year-old Sylvia R. Smith to pay $674,093 in restitution during the sentencing on Monday. Smith was accused of devising an embezzlement scheme to obtain money from her employer, Market Finders Insurance Corp. and diverting those funds to another company owned by her husband.

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A plea agreement says Smith created fraudulent loan checks from Market Finders and moved them into the bank account of her husband’s company, PBS Insurance. This happened from July 2013 to April 2015.

Smith was charged with wire fraud and failing to report embezzled funds as income on her tax returns.