KITCHENER - A fired supervisor admitted Thursday that she ripped the University of Waterloo off for $750,000 to finance her lavish lifestyle.

The judge told Jacqueline Hollmann a key factor at her sentencing in the fall will be whether she has paid any of the money back.

But her lawyer, Tom Brock, said that is unlikely since it was almost all spent on expensive clothes, trips and horses.

"Most of the money is gone, sir," said Brock, adding the crime wasn't driven by an addiction to drugs, alcohol or gambling.

Hollmann, 45, worked at the university for more than 20 years and was in charge of its copy centres when the fraud came to light in early 2011.

A company that provided an electronic payment system at UW noted an unusually high number of refunds at the centres, most for just under $1,000.

Red flags were also raised by electronic refunds made after business hours and on weekends.

"It was the pattern that alerted the system," said Crown prosecutor Nicole Redgate.

That led to an audit of the copy centres, which operated as an ancillary business unit providing printing and administrative services to students and other customers.

Between early 2007 and early 2011, the audit showed, Hollmann made almost $390,000 in bogus refunds to numerous bank accounts and credit cards she held.

In addition, auditors found that Hollmann pocketed $360,000 in cash payments made at the copy centres.

"This is a lot of money," said Justice David Carr, asking her lawyer where it all went.

The amount of the fraud was initially estimated at just under $1 million, but the Crown conceded it could only prove Hollmann was responsible for a $750,000 loss.

A small, nondescript woman with glasses and no prior criminal record, Hollmann pleaded guilty in Kitchener court to one count of fraud.

She was fired by UW after her schemes were discovered and is now separated from her husband, also a university employee, as a result of the fallout.

Brock said Hollmann will get some money from the sale of the matrimonial home, "but nothing approaching $750,000."

Redgate said she will argue for an 18-month jail term when Hollmann returns to court in October. The defence will seek 15 months in custody.

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After the judge stressed the importance of making restitution between now and then, Redgate said she would consider reducing her request if Hollmann comes through with payments.

"I'm prepared but not optimistic based on what has transpired so far," she said.