Red Cross theft earns ex-director 15-year sentence

Must repay $98,198, jury says

— The former executive director of the Garland County chapter of the American Red Cross, who was arrested in 2008 over allegations of embezzling organization funds, was sentenced to 15 years in prison Thursday.

Karla Lynn Brown, 55, had pleaded guilty June 16 to a felony charge of theft of property worth more than $2,500. The charge is punishable by five to 20 years in prison, but prosecutors opted to let a jury decide Brown’s sentence instead of making any plea offers.

The jury of seven women and five men deliberated in Garland County Circuit Court for about 90 minutes before recommending the prison sentence and ordering her to pay $98,198 in restitution to the Red Cross.

Deputy prosecutor Brendan Donahue said he was “extremely happy” with the sentence.

The sentencing involved 204 checks made payable to Brown over the course of about 1 1 /2 years.

Donahue said Brown would basically go back after writing a check and either change it in the bookkeeping or “take it out entirely.”

In testimony, four witnesses said their signatures on documents presented at trial as evidence were forged by Brown.

Donahue said that even though Brown admitted that she stole funds, “she wouldn’t admit how much” and tried to contest the amount investigators and prosecutors had determined.

Brown had indicated that the amount was more like $20,000 or $26,000, but “there was no basis for that amount other than her just saying that’s how much it was,” he said.

Donahue said he tried to convey to the jury the seriousness of the crime because “she wasn’t just stealing from the Red Cross, she was stealing from all those who have donated” to the organization. He said those who held bake sales and other fundraisers were the victims, as were people who suffered fires and floods, and others who went to the Red Cross for help.

Brown was arrested by Hot Springs police on Oct. 9, 2008, and was initially charged with 211 felony counts of second degree forgery, each punishable by up to 10 years in prison. The charges were later amended to a single theft count.

Brown was released on a $5,000 bond the next day.

According to the affidavit, on Sept. 15, 2008, Red Cross board member Debbie Ugbade filed a report accusing Brown of writing checks on a Bank of America account belonging to the Red Cross between June 2006 and March 2008.

Brown was accused of making the checks out to herself and forging another person’s signature on each one. All checks written on the account require two signatures, the affidavit states.

Hot Springs police detective Lisa King said after Brown’s arrest that the investigation went back only two years.

“It was a lot of work involving a lot of checks and a lot of adding,” King said, noting that Brown resigned as director in April 2008 after eight years and that the complaint was the result of an audit of the organization’s finances.

Bridget Williams, a spokesman for the American Red Cross, said, “We are very happy with the sentencing, both the 15 years and the full restitution” being ordered.

“This sends a strong message to others who might think of misusing donor funds,” she said.

“We are going to follow the law to the full extent to ensure our donors’ interests are protected.”

Arkansas, Pages 12 on 07/30/2010

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