- Associated Press - Thursday, June 5, 2014

ALCOA, Tenn. (AP) - A former Alcoa City School District employee has pleaded guilty to embezzlement that caused losses of more than $400,000 to the district and two nonprofits.

According to the U.S. attorney’s office for the Eastern District of Tennessee and an audit by the state comptroller’s office, Kathy Winters of Harriman was responsible for managing the school district’s federal funds. Using fraudulent invoices, she diverted money into accounts for two nonprofits where she served as treasurer. She used the money to pay her mortgage; buy food, jewelry, clothing and iTunes songs; and invest in a local gym.

She also used the school district’s credit cards for personal purchases and received reimbursement for 70 trips she did not take.

Winters pleaded guilty on Wednesday and sentencing is set for Oct. 7.

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