HOT SPRINGS — The former executive director of the Garland County Chapter of the American Red Cross, arrested in 2008 on accusations she embezzled organization funds, was sentenced Thursday to 15 years in prison by a Garland County Circuit Court jury.
Karla Lynn Brown, 55, pleaded guilty June 16 to a felony charge of theft of property (more than $2,500), which is punishable by five to 20 years in prison, but prosecutors opted to let a jury decide her sentence.
The seven-woman, fiveman jury deliberated for about 90 minutes before recommending the prison sentence and ordering her to pay $98,198 in restitution.
Deputy prosecutor Brendan Donahue said he was “extremely happy” with the sentence, noting the jury “didn’t max her, but they gave her a good chunk of time.”
The embezzlement charge involved 204 checks made payable to Brown over the course of about 18 months and forged endorsements on the checks.
“There were some other things, but I tried to narrow it down and focus on the checks,” Donahue said.
Brown would basically go back after writing a check and either change it in the bookkeeping or “take it out entirely,” Donahue said.
Four witnesses whose signatures were forged by Brown testified during the two-day sentencing hearing.
Donahue said even though Brown admitted she stole funds, “she wouldn’t admit how much” and tried to contest the amount investigators and prosecutors had determined.
Brown had indicated 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 and those who should have benefited from the funds.
He said those who held “bake sales” and other fundraisers were the victims, as were the victims of fires and floods and others who went to the Red Cross for help.
Brown was arrested by Hot Springs police Oct. 9, 2008, at her residence at 240 Matthews Drive, Apartment A-9. She initially was charged with 211 felony counts of second-degree forgery, each punishable by up to 10 years in prison, but the charge was later amended to a single theft count.
Brown, who reportedly had no prior criminal history, posted bond the next day.
According to the affidavit, on Sept. 15, 2008, Debbie Ugbade, a board member of the local Red Cross chapter, filed a report alleging that between June 2006 and March 2008, Brown, who was director during that period, wrote checks on a Bank of America checking account belonging to the Red Cross.
Brown purportedly made the checks out to herself and would forge another person’s signature on each one. All checks written on the account require two signatures, the report states.
Hot Springs police detective Lisa King said after Brown’s arrest that she had been director of the chapter for eight years and 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 Brown resigned as director in April 2008 and the complaint was the result of an audit into 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” that was ordered.
“This sends a strong message to others who might think of misusing donor funds,” she said.
Arkansas, Pages 15 on 07/31/2010