Jail Sentence Is Given Mrs. Malloy

Jail Sentence Is Given Mrs. Malloy

Mrs. Mildred M. Malloy, 54, who pleaded nolo contendere (no contest) to embezzling nearly $40,000 from three doctors who employed her, yesterday was sentenced to spend six months in the County Jail on weekends and to make $25,000 restitution to the doctors.

She was also fined $100 and ordered to pay $906.90 court costs.

Half of the restitution had been made to Drs. Norman F. Miller, Tommy N. Evans, and George W. Morley, by whom she was employed as a secretary--bookkeeper. The remaining $12,500 is to be paid within one year and is secured by a mortgage on her $25,000 home at 811 Barton Dr.

THE POSSIBLE maximum sentence for embezzlement is 10 years in prison.

Circuit Judge James R. Breakey, jr. told Mrs. Malloy that "because of the gravity of her offense and the fact that so much money is involved, I could well do no more than to sentence you to prison." "However," he said, "if I sentence you to prison, the doctors would be the only people to be penalized. This would not be in the interest of justice."

He said he was "choosing to be realistic and attempt to lessen the injury that has already been or will be incurred by the doctors" by allowing "restitution of a substantial amount" to be made.

Mrs. Malloy's surprise no contest plea Jan. 4 was entered on the Friday night preceeding her trial which was set for Monday. She was charged with embezzling $39,935.84 between Jan. 3, 1956, and August 8, 1961, from the private practice funds of the three doctors, who are also professors of obstetrics and gynecology at the U-M Medical School.

THE DOCTORS dismissed Mrs. Malloy on August 13, 1961 and a warrant for her arrest was issued Oct. 10, 1961.

The case has been before the courts since Oct. 27, 1961, when she surrendered herself at city police headquarters and demanded examination.

She had been the object of a 17-day nationwide search in which the FBI participated under a new law permitting it to enter such felony cases. On her return, Mrs. Malloy said she had been vacationing in Mexico and the Southwest and had not known about the arrest warrant.

At her arraignment on March 3, 1962, she stood mute and a "not guilty" plea was entered for her.

The weekend jail sentence will permit her to continue her employment as a secretary in a local law firm.