Michael Kmec, the former director of Auxiliary Services at Connecticut College, pleaded guilty Wednesday to one count of wire fraud relating to an embezzlement scheme through which federal prosecutors say he stole vast sums of money from the College.
During his tenure as Auxiliary Services director, Mr. Kmec managed to run a variety of illegal operations that defrauded the College of $173,010. These activities included “receiving funds from the college through fraudulent billing schemes, diverting checks to the college to a bank account he controlled, diverting money from the Camel Card program to bank accounts he controlled, and misappropriating a college laptop,” according to the office of the U.S. Attorney for the District of Connecticut.
In his 12 years at the College, Mr. Kmec appeared to be a rising star. He ran dining services and was profiled by a food service publication in 2011 as a “future food service leader.” He was promoted to Auxiliary Services director in 2014 where he oversaw College operations such as printing and mailing services, the bookstore, laundry, transportation, and the Camel Card office. He led a campus parking working group, implemented new software for Campus Safety, and developed a transportation program that brought a fleet of rental vans to the College. In 2014, Mr. Kmec was nominated by Connecticut College for a Connecticut Higher Education Community Service award. President Katherine Bergeron honored Mr. Kmec with the 2017 Presidential Staff Recognition “Inspiration” award.
But with intimate access to student accounts and the responsibility to reimburse many third-party vendors for their services, Mr. Kmec used his directorship as cover for paying out thousands of dollars to himself through fraudulent invoices and account transfers.
In April 2016, Mr. Kmec was involved in creating a limited liability company called Decal Graphics of Connecticut, of which CTOpenData identifies him as a Principal. Mr. Kmec submitted and approved fraudulent invoices for services from Decal Graphics and from another company, Connecticut Business Systems, that would transfer funds to accounts he controlled.
Mr. Kmec also diverted money from the Camel Card office and the bookstore to his own accounts. This included an instance where he deposited over 80 student reimbursement checks from the bookstore operator Follett into his own accounts. Details on Mr. Kmec’s activities with Decal Graphics and Connecticut Business Systems were first reported by The Day.
Mr. Kmec was fired in April 2018 after College officials identified his activity during a planned review of Auxiliary Operations. College media relations manager Tiffany Thiele said the College “immediately reported [Kmec] to law enforcement and fully cooperated with the investigation.”
Wednesday’s announcement by the John H. Durham, U.S. Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the FBI’s New Haven Division, is the first public acknowledgement of an investigation into Mr. Kmec’s alleged activities.
In early October, the FBI denied public records requests made by The College Voice relating to Kmec’s investigation, citing privacy policies. In doing so, the Bureau did not confirm or deny the existence of such an investigation. An appeal is pending.
Mr. Kmec now faces up to 20 years behind bars. He is scheduled to be sentenced in Federal District Court by Judge Michael P. Shea on February 12, 2019.
