Woman charged with embezzling over $100,000 from Pine River Dental Arts
The owner reported that during the COVID-19 pandemic office shutdown, she began to examine the business’ records and discovered the theft.
Looking ahead – March 2021 – Judge sentences Backus woman who embezzled funds from dental office
Oct-1-20 Walker, MN – A 61-year-old Backus woman accused of embezzling over $100,000 from a Pine River dental office said she did it to support her gambling and shopping habits, according to court documents.
Sandra Jean Kelley was criminally charged Sept. 25 and summoned to appear in Cass County District Court on felony theft charges of diverting funds from Pine River Dental Arts.
Kelley’s first court appearance is scheduled at 2 p.m. Nov. 18 in a Walker courtroom in front of Judge Jana M. Austad.
According to the criminal complaint filed against Kelley, a Cass County sheriff investigator spoke June 26 with the CEO of Pine River Dental Arts. The CEO discovered discrepancies leading her to believe Kelley, the former office manager, mishandled company funds. When Kelley was employed, she was the only employee who oversaw the office financial duties, including payroll and accounts receivable.
The investigator spoke with Kelley, who admitted she stole from her former employer, that it had been going on since 2013 and she did it to support her gambling and shopping habits. Kelley stated she paid her personal credit card with company funds.
The CEO claimed Kelley took extra hours through payroll and she took cash from the company account for personal use.
The CEO reported that during the COVID-19 pandemic office shutdown, she began to examine the business’ records and discovered that between Oct. 9, 2017, and March 31, 2020, Kelley used the corporate checking account to pay $84,633.08 off her personal credit card, the complaint stated.
Pandemic induced economic uncertainty increases the risk of employee embezzlement.
She also discovered Kelley paid for her personal cell phone bill with a corporate credit card on March 30, 2020, in the amount of $852.24.
The CEO reviewed the payroll records and compared them with office records and discovered that between Sept. 24, 2015, and March 9, 2020, Kelley overpaid herself $44,587.65, the complaint stated. The CEO said after comparing business records with cash deposits at the bank, that between Sept. 24, 2015, and March 31, 2020, Kelley took over $80,878.16 in cash.
The complaint further stated Kelley’s daughter-in-law also worked for the business from 2013 through 2019 as a patient coordinator. The CEO reported records showed Kelley overpaid her daughter-in-law as an employee by $27,908.91 between Sept. 24, 2015, and Sept. 5, 2019. Kelley asserted her daughter-in-law was completely unaware that she modified her payroll. The daughter-in-law reported she had no idea anything was wrong with her paychecks.
If convicted, Kelley could serve up to 20 years in prison.