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Wednesday, Oct 01, 2014
Pasco Tribune

Former office manager of Pasco doctor charged with theft of $1.5 million


Published:   |   Updated: June 18, 2014 at 07:20 AM

— A former office manager has been charged with organized fraud in connection with the theft of $1.5 million from a Zephyrhills doctor, according to court records.

Karen Frost, 64, who formerly worked for Dr. Kozhimala John, remains in the Land O’ Lakes jail under $250,000 bond. Frost, who was living in Panama City, was arrested on May 31 on a warrant.

Frost is accused of an organized scheme to defraud John over about a five-year period, from Jan. 1, 2007 to Oct. 31, 2012, court documents show. As the doctor’s office manager, she also managed his personal investment account for his orange groves and his rental condos.

On a weekly basis, Frost would bring John a batch of blank checks that needed his signature and told him they were for expenses related to the orange groves, court records show. She said she would fill in the payee before sending them out, records show.

The investigation of Frost began after John notified Zephyrhills police in October 2012 that Frost told him that she had borrowed money from him during 2010 and needed to pay him back, documents show.

Florida Department of Law Enforcement agents found a bank account in Frost’s name where she would primarily deposit the checks. She then transferred the majority of the money to an account of her son and daughter-in-law, who live in Panama City, documents show. Frost said she told her son and daughter-in-law that she borrowed the money from John or that the money came from an inheritance.

Frost also is accused of making 416 payments totaling $730,903 from John’s investment account to make her credit card payments, documents show. From 2007 to 2012, she wrote herself $847,774 in checks from John’s account, according to court records.

On March 26, Frost admitted in an interview with FDLE that she had stolen money from John, court records show.

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