Norfolk woman sentenced to over a year in prison for embezzling from her employer to pay gambling debts

NORFOLK, Va. - A Norfolk woman was sentenced today to a year and six months in prison for wire fraud relating to her embezzlement of over $123,000.

According to court documents, Katherine Louise Henderson, 55, was employed as the treasurer for a manufacturer of brake products in Norfolk and had access to the company's financial records and accounts, including the ability to approve payroll. To cover losses incurred through online gambling and to support her shopping habit, Henderson embezzled funds from the company by issuing herself unauthorized payroll funds above her salary. She also created a payroll account for her husband despite the fact he never worked for the company and was unaware that Henderson had created a payroll account for him.

Henderson intercepted vendor payments and diverted them to her personal accounts, then changed the company's records to make it appear the payments had been successfully deposited into company accounts. Henderson's fraud was discovered in August 2023 while she was on vacation. During her absence, a company employee requested payment from a vendor. The vendor provided proof that the payment had already been made and an investigation revealed that the payment had been diverted to Henderson's account.

In total, Henderson embezzled $123,104.42 from her employer.

The FBI's Norfolk Field Office investigated this case.

Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.

Related court documents and information are located on the website of the District CourtLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. for the Eastern District of Virginia or on PACERLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. by searching for Case No. 2:26-cr-14.