Charges filed after local club’s audit showed loss of about $46K

A woman accused of stealing thousands of dollars from 2010 to 2014 from Fountain Lake Sportsman’s Club pleaded guilty to felony theft Thursday in Freeborn County District Court.

The charge implied an intent to exercise temporary control of funds.

Kelly Walton, 39, of Lavon, Texas, was ordered to pay almost $46,000 in restitution. She planned to present two cashier’s checks with the total restitution amount Thursday.

Court documents state Walton was charged after an Albert Lea detective met with members of the Sportsman’s Club on June 6, 2014, on a report of a suspected theft by Walton, the organization’s treasurer. The members reported that a balance of $18,000 the previous week had been reduced to $210.

Walton, who lived in Albert Lea at the time the complaint was filed last year, reportedly kept the books for the organization. She had exclusive control of the of the company’s checkbook and an ATM card drawn on the same account.

Court documents state Walton provided all of the items she claimed belonged to the Sportsman’s Club, including a briefcase, $16.75 in change, a planner, check blanks, three-ring binders, membership cards, two cash boxes, a box of paperwork, a computer and lottery tickets.

Walton reportedly told the detective that she had been the treasurer of the organization for four years, she paid the bills when they came in and she was the only one who had to sign the checks to pay the bills.

She allegedly acknowledged that there would have been no reason for her to use the ATM card for personal use. She said there should be $400 in the business account, and the youth account varied from $6,000 to $18,000.

Court documents state Walton told the detective that there were people in the club whom she did not trust, so she took money out of the accounts. She advised that she had half of the money in a safe and said she could get the remaining half in about a month as of June 2014. The money had not been returned, however, at the time of the complaint.

She reportedly told the detective that she had promised to a club member that she would get the money back and they could go their separate ways, and she said she did not think it was a crime because she was trying to protect the money.

Court documents state Walton told the detective that she was wrong, didn’t make the right decisions and was sorry, but she denied using the money for personal gain, saying she was protecting the money.

A financial audit of the organization from February 2010 to October 2014 reportedly found $1,435 in overdraft fees, between $300 and $400 in ATM fees and a total loss of about $46,000. Court documents state that in 2013, the organization suffered a loss of about $11,000.

Walton admitted to taking possession of the club’s funds without permission and intending to exercise temporary control over the funds on Thursday.

The funds, which were allegedly withdrawn by ATM and written checks, reportedly varied from $40 to about $2,500. Unauthorized withdrawals were allegedly made each month during the referenced time period. 

Sentencing is scheduled for March 16. Walton is expected to receive a stay of adjudication sentence, meaning that if she completes court requirements her charge would be dismissed. No executed jail time is expected.

Receiving stolen property and felony theft each carries a maximum sentence of 20 years in prison.