Telthorst indictment ( .PDF )
A Topeka lawyer has been indicted in federal court for wire fraud and money laundering, including allegations the man cleared out nearly $80,000 from a trust designated to benefit the Kansas University School of Business.
Robert M. Telthorst, 52, was charged Monday in U.S. District Court in Topeka, according to federal court records.
In the indictment, among other allegations, Telthorst is accused of diverting nearly $80,000 provided by “Albert and Bertha J.” in May 2010 to support a charitable trust for the KU School of Business. The indictment alleges that Telthorst instead used the money to further support a “Ponzi” scheme he had divised with several other client funding sources.
By April 2011, the trust to benefit KU had been drained down to less than $1,800.
In addition, Telthorst is accused of defrauding several other clients of more than $460,000. In one case, Telthorst allegedly diverted $20,000 away from a medical savings account set up to assist a woman’s disabled daughter.
All of the funds diverted were either used for Telthorst’s personal benefit or to replenish funding he had diverted from other clients, the indictment alleges.
If convicted, Telthorst could face up to 20 years in prison each on the wire fraud and money laundering charges.
The Journal-World was unable to reach a spokesperson from the KU School of Business on Monday.