Former dentistry bookkeeper ordered by federal court to pay up | News

ASHLAND The former bookkeeper and manager of a dentist office was sentenced in federal court last week.

Kathy Thorner and her husband, William Thorner, DMD, previously owned and operated Caring Dentistry in Ashland before a multi-count indictment was handed down, charging them with failure to turn over social security taxes, turning in false tax returns and conspiracy to defraud the IRS.

Charges against Mr. Thorner were eventually dismissed but Mrs. Thorner pleaded guilty to three counts in May 2022.

Thorner was sentenced in the United States District Court for the Eastern District of Kentucky to 30 days in jail followed by nine months of house arrest.

Thorner was also ordered to complete community service and to reimburse the federal government more than $208,000.

Thorner’s attorney, Sebastian M. Joy, provided the court with background information in a sentencing memorandum that explained Thorner’s criminal activity.

According to court documents, Mr. Thorner partnered with another local dentist under a guise that he ultimately would be taking over the practice.

The Thorners allege that the other dentist opened his own office and began to solicit Thorners patients and employees, costing the business over a hundred patients and driving them to “financial ruin.”

With no other option, Thorner resorted to having his wife, with no experience in accounting or business management, handle the bookkeeping and financials of the business including handling payroll taxes.

Over the course of a few years, U.S. attorneys alleged that Mrs. Thorner failed to turn over payroll taxes and “understated income” and “overstated federal withholdings.”

The dentist office closed in 2018.

Joy wrote Mrs. Thorner was the perfect example of an offender “that needs to be punished, deterred and rehabilitated, not convicted, warehoused and forgotten. … Mrs. Thorner committed this white collar crime as she was on the brink of devastation.”

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