Amy Kuhner, the woman who came to Madison saying she had dreams of establishing a special care facility for seriously ill children, a "Sunshine House," pleaded guilty recently to one count of making false statements about her use of federal funds. The U.S. Attorney's office contends Kuhner used federal grants not for construction of Sunshine House, but instead to pay herself a generous salary.

According to the U.S. Attorney's office, Kuhner, 55, formerly of Madison, waived her right to indictment and pleaded guilty before United States Magistrate Judge Donna F. Martinez in Hartford. She pleaded guilty to one count of making false statements about her use of federal funds.

According to court documents and statements made in court, Kuhner was the executive director of Sunshine House, an organization formed for the purpose of constructing a facility in Madison to care for seriously ill children. In September 2001, Sunshine House received an $836,190 federal grant to pay part of the construction costs of the center. The grant originated from the Health Resources Services Administration (HRSA), a program of the U.S. Department of Health and Human Services. As executive director of Sunshine House, Kuhner was the only person who handled the grant money and she exercised exclusive control over the use of the grant funds.

In July 2007, after all of the grant funds had been drawn down, HRSA asked Sunshine House to provide documentation of the costs incurred during the grant period. In pleading guilty, Kuhner admitted sending to HRSA documents falsely stating that Sunshine House had incurred architectural and engineering costs to date in the amount of $594,225. The documents also omitted the fact that, from September 2001 through September 2006, Kuhner had received a gross salary of $417,932 and health insurance benefits totaling $22,294 and that most of this salary and benefits had been paid using grant funds. In addition, Kuhner used grant funds to pay her salary in 2007 and 2008, after the grant had closed.

In July 2007, Kuhner appeared before the town's Planning & Zoning Commission, introducing herself as the executive director Sunshine House, Inc., "a philanthropic organization." She and her organization's board of directors was asking the Planning & Zoning Commission to approve a proposal to build "a comfort care center for children with life-shortening conditions."

Sunshine House, which would have been only the second facility of its kind in this country, was proposed on eight acres of property then owned by the Goddard family along Fort Path Road. The design by Madison architect Duo Dickinson included eight suites for children and their families; a butterfly garden; common areas with a dining room, library, and a home theater; a therapy pool, chapel, and gymnasium; and space for administration and staff. Dickinson, an award-winning architect, donated his services. Kuhner told the Planning & Zoning Commission that the proposal was the result of more than 11 years of work on her part.

In an interview with The Source in 2002, Kuhner said her journey to setting up the Sunshine House had many twists and turns. She is a graduate from Georgetown University and she received her MBA from UCLA. In the '80s she worked on Wall Street for J.P. Morgan. However, later on while living in San Francisco, she had a life changing experience.

"I had an invisible hand lead me off the bus and into Grace Cathedral," Kuhner said in the interview. "It was a real spiritual moment. I knew my life direction was changing."

After this experience, Kuhner moved to Connecticut and attended the Yale Divinity School. From there she worked with pastoral care, hospice, and children's hospitals. Through these experiences, she said, she determined that "kids that are going to pass on really need a place of their own."

Kuhner is scheduled to be sentenced by Chief U.S. District Judge Alvin W. Thompson on Oct. 15, at which time Kuhner faces a maximum term of imprisonment of five years and a fine of up to $250,000. This investigation was conducted by special agents from the Office of the Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.