Treasurer's employee admits to embezzlement
Faces up to 20 years in prison, must pay back $263K

By Sarah Antonacci
State Journal-Register, Springfield, IL

Published Wednesday, August 20, 2008

A veteran state treasurer’s employee admitted Wednesday she embezzled $750,000 from the state, but her plea could mean she will get a break when sentenced later this year.

Debra Kay Kirby, 54, of Taylorville was told by U.S. Magistrate Judge Byron Cudmore that she faces a maximum of 20 years in prison on a wire fraud charge and up to 10 years’ imprisonment for money laundering.

Kirby pleaded guilty without having first arranged a deal with federal prosecutors. That can lead to fewer years in prison because authorities often look at such a plea as a sign that the accused is taking responsibility for his or her crime and working toward rehabilitation.

She also will have to pay back $263,000 she is accused of stealing and spending.

Assistant U.S. attorney Gregory Gilmore said Kirby, who had risen through the ranks in her 33 years with the treasurer’s office, opened an account at U.S. Bank under the name of Debo Kraft.

She then transferred $750,000 from the state to that account by way of a bank in Texas.

Kirby returned about $480,000 to the state in a complicated effort to cover up the theft. But she kept the remainder of the money and spent it on vacations, household and personal expenses, her son’s college and her husband’s business.

Sara Wojcicki, spokeswoman for Treasurer Alexi Giannoulias, said Kirby will lose her state pension as a result of the conviction. More restrictions have been placed on financial transactions since Kirby’s theft, and the treasurer is looking forward to the sentencing, Wojcicki said.

“We’re glad the process is moving forward and she’s admitted she stole money from the state,” Wojcicki said. “As we move toward the sentencing, we hope the judge imposes a sentence that is very strong to send a message about the severity of such illegal activity.”

Kirby is set to be sentenced Dec. 8. Her attorney is Robert Scherschligt.

  
     
 
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