Nancy Martin was a corporate officer with Emergency Services PA. File/The Wichita Eagle
Nancy Martin was a corporate officer with Emergency Services PA. File/The Wichita Eagle

Crime & Courts

Woman admitted to embezzling millions from Wichita firms, court motion says

November 09, 2017 04:00 PM

UPDATED November 10, 2017 02:30 PM

A prominent Wichita woman accused in a lawsuit of embezzling millions of dollars from two medical businesses has admitted to it, and she and her husband have indicated they can’t pay back the money, a court document says.

Nancy Martin – who had been the longtime administrator for two physician-owned businesses at Wesley Medical Center and who has served on a number of prominent boards – “has represented that her net worth is about 25% of the damages” sought in the lawsuit, according to a motion filed by the attorney for the businesses. Also, “virtually all the assets that make up her net worth are not liquid,” it says.

Those assertions in the court document are part of an effort by the medical businesses’ attorney to essentially freeze Nancy and Tom Martin’s assets except for reasonable expenses.

On Wednesday, the medical businesses’ attorney, Todd Shadid, filed a motion for a restraining order and temporary injunction against the Martins, her living trust and their limited liability corporations. A judge then approved a temporary restraining order against the couple and their business entities, finding that there is a “substantial likelihood” that the businesses bringing the lawsuit “will eventually prevail on the merits of their claims.”

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The medical businesses that are suing have presented “sworn evidence showing that Nancy Martin not only embezzled millions of dollars from Plaintiffs, but when she was confronted, she admitted to it,” the motion says.

The motion alleges that because the couple have lived together during the time the money was embezzled, “it is reasonably likely that Tom Martin” and the couple’s business entities “benefited from the embezzlement, knew about the embezzlement and aided and abetted Nancy Martin’s embezzlement.”

The lawsuit, brought by Mid-Kansas Wound Specialists and by Emergency Services, was filed last month in Sedgwick County District Court. The litigation seeks a jury trial and damages exceeding $75,000. It alleges that more than $4 million was embezzled between 2006 and 2017. The lawsuit put the total damages at almost $6.3 million, which includes interest, lost profits and investigation costs.

Neither Nancy Martin nor any attorney who represents her could be reached for comment Thursday. Tom Martin’s attorney declined to comment.

No criminal charges have been filed in connection with the lawsuit.

The court order says that the Martins are “restrained from encumbering, converting, hiding or disposing of” their assets except as needed for “reasonable and necessary” living, health or legal expenses directly related to the lawsuit or a possible criminal case that might result from the litigation.

Although the Martins have indicated that they can’t pay the damages sought in the lawsuit, “they have purportedly made over a $65,000 principal payment on the mortgage” in the past 30 days for a house they own on North Foliage Court in Wichita, says the motion for a restraining order.

“Nancy Martin claims she is in the process of moving residences, but has not provide a new address,” it says. “The Martins have been moving a significant amount of personal property into” a residence on North Gatewood in Wichita, it said.

The medical business that are suing the couple are worried that the couple are or will “encumber, convert, hide or dispose of assets to avoid paying the judgment rendered in this case,” the motion says.

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blowry@wichitaeagle.com