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Kalispell Woman Gets Prison Time, House Arrest in Fraud Case

By Beacon Staff

MISSOULA – A Kalispell woman has been sentenced to a year in prison followed by six months in house arrest for stealing from physicians who contracted with her to provide medical billing services.

Kathleen Hunnewell, 44, was sentenced Friday by U.S. District Judge Donald Molloy in Missoula. He ordered her to pay nearly $122,000 in restitution.

Federal prosecutors say that some of the funds Hunnewell handled through her medical billing company were converted to personal use, and that Hunnewell’s federal income-tax returns for 2001, 2002 and 2003 did not reflect money on her bank records. Prosecutors say that for 2003, Hunnewell failed to claim about $60,000 in income that records show she received that year.

Hunnewell pleaded guilty in January to mail fraud and filing false income tax returns.