Woman accused of stealing $5 million from Detroit police, fire pension fund to surrender

Teresa Kastanes expected to turn herself in after fleeing to Caribbean Island

Published On: Nov 12 2012 07:57:10 PM EST   Updated On: Nov 13 2012 09:16:51 AM EST
Teresa and George Kastanes
DETROIT -

A local businesswoman is accused of stealing $5 million from a Detroit pension fund.

Teresa Kastanes along with her husband is accused of stealing $5 million from a police and fire department pension fund and spending it on exotic art and jewelry.

Their journey began with a lawsuit by Detroit Police and Fire pension over $10 million loan that was to be used to buy and restore more than 1,400 foreclosed homes in metro Detroit.

The Kastanes’ partnered with Detroit businessman Abner McWhorter, who committed suicide in 2011 amid accusations of a Ponzi scheme to defraud the pension fund.

Teresa and George Kastanes fled the United States to the Caribbean Island of Saint Kitts before disappearing to Costa Rica and eventually Nicaragua.

Teresa is expected to surrender to federal agents Tuesday morning in Florida.

According to the pension fund, George and Teresa owe them more than $15 million.