Sallisaw woman embezzles over $8,000 from PTO

CLARIFICATION

On Page 1 of the Oct. 4, 2023, issue of Your TIMES, a correction stated that Kari Harrell should not have been identified as an employee of Sallisaw Public Schools. That is correct. Harrell was on the Sallisaw Eastside PTO last school year, and her signature was allegedly forged on a check. Harrell is one of the alleged victims in the case.

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PUBLISHED 10:30 a.m. CT FRIDAY, SEPT. 29, 2023  | UPDATED 2:45 p.m. CT WEDNESDAY, OCT. 4, 2023

A Sallisaw woman is charged with felony embezzlement and a criminal misdemeanor charge of possession of forged instrument after it was discovered she had reportedly taken more than $8,000 from the Sallisaw Eastside PTO account and forged another person’s name on a check for reimbursement purposes.

Chelsea L. McKinney, 38, was charged Sept. 26 in Sequoyah County District Court and a bench warrant was issued for her arrest the same day, according to court record. She received a $5,000 bond and following Wednesday’s arraignment, she is now scheduled for an Oct. 18 felony disposition docket before Associate District Judge Kyle Waters.

On the afternoon of Sept. 1, Sallisaw Police officer Rebecca Greer reported she was dispatched to Eastside Elementary School to meet with principal Chad Jasna in reference to an alleged embezzlement.

According to the probable cause affidavit filed in the case, Jasna received a call from National Bank regarding the Eastside PTO account being overdrawn by about $200. The bank provided Jasna with a print out of all transactions from the account and he stated that it shouldn’t have occurred, because they do not use that account during summer months.

After reviewing the transactions, Jasna found where the debit card belonging to the account had been used in Branson, Mo., and Texas. Jasna said the treasurer to the account was McKinney, and he was able to determine it was McKinney using the debit card and checkbook.

The principal asked if there could be a mistake or mix up in accounts, but the bank said when they flagged the PTO’s debit card over the out-of-state charges, McKinney reportedly came inside the bank and received the new debit cards for the account. Jasna was then provided with a printout of the two debit cards that were issued to McKinney.

Greer and Jasna went over the transactions together and found the only transaction from the summer should have been for a $300 gift card for summer school. They found where a check was made out for $300 on July 1, but it was made out to “cash,” reportedly to reimburse for the summer school gift card. However, the check was not cashed until July 19, and the signature showed that Kari Harrell had signed the check, but Harrell did not have access to the checkbook at that time.

Two other checks were reportedly signed by McKinney on July 18 and July 30. One check was made out to Harrell for the summer school gift card on June 5, and Jasna said that was correct because Harrell had provided a receipt for it and was reimbursed.

When Jasna asked Harrell to confirm her signature on the checks, Harrell said she did not write or sign one of the checks, and McKinney had the checkbook at that time, according to the affidavit. Harrell said she has never had a debit card and was also able to provide text messages between herself and McKinney, showing she’d turned the checkbook over to her on July 16.

Jasna provided Greer with a signed statement, copies of the transactions from the bank and checks, and screenshots from McKinney’s Facebook page showing where she was in Branson at the time the card was used. He also provided pictures from Texas, showing McKinney had been there at the time the card was used there.

At that time, Jasna said he found a total of $8,306.24 in alleged fraudulent charges that could not be accounted for, according to the report.

Greer said she spoke with Lt. Andrew Edwards on Sept. 6 and was told that he’d spoken to Harrell and advised her that Sallisaw assistant superintendent Brad Jackson decided “they wanted to let the issue go” since McKinney was going to pay the money back, according to the probable cause affidavit. Greer reportedly met with McKinney later on at the Sallisaw Police Department, along with Capt. Herb Hutchinson. According to the affidavit, McKinney stated she had lost her job, and was “using the funds due to it being a hard time in her life.”

When Hutchinson asked if there was a way for McKinney to pay everything back, McKinney said she would pay it back. Hutchinson reportedly explained to her that this was a civil agreement between the school and McKinney, but at any time, the victim could come back and decide to file charges against her. McKinney thanked Hutchinson and told him she’d get in contact with the school to find out the final amount she owed.

Greer received a case number to assist with the investigation of the alleged embezzlement from the Sallisaw School system and contacted Jackson about the missing money. Jackson said they were not looking into filing charges, they just wanted her (McKinney) to pay the missing money back. Jackson said he did not yet have a total amount but would work on getting it.

The officer made contact with McKinney’s husband, Michael McKinney, and told him about the allegations and that she needed to speak with his wife. Greer reported Michael McKinney seemed to be in disbelief about the situation but wanted to take care of it as soon as possible. Greer told him that the school was not wanting to press charges as long as the money was paid back. He then said he would get in touch with Jackson at the school and set up a meeting.

Chelsea McKinney reportedly arrived at the police department next and was advised of the allegations made against her. She was reportedly upset and told Greer she would pay the money back to the school, and Greer told her how serious the crime was if the school chose to pursue the allegations against her.

McKinney reportedly went on to say, “that it was a bad time for her, she lost her job and just was not thinking,” according to the affidavit.

Greer said she was working at the school on Sept. 18 when the McKinneys reportedly arrived to meet with the Eastside PTO, Jackson, and Sallisaw School Superintendent Steve Barrett. The McKinneys were told that the amount owed was $8,306.24 and were given a copy of the reported transactions.

McKinney wrote a check for the full amount to the Eastside PTO, and Michael McKinney apologized and asked if he could take the transactions home and review them, and the PTO agreed.

On Sept. 20, Greer was contacted by the Eastside PTO, stating they’d met and wanted to pursue charges against Chelsea McKinney “for embezzling funds and forging Harrell’s signature on one of the checks.”

Jasna said they decided to move forward because “they felt it was not their decision to decide on the issue” and wanted it moved to the District Attorney’s office for further examination to resolve the issue, according to the affidavit. Greer then completed a supplemental report with the new information and submitted it to the DA’s office.

District Attorney Jack Thorp said felony embezzlement is punishable by imprisonment in the State Penitentiary for up to five years and a fine not to exceed $5,000 and restitution, while the possession of forged instrument charge is punishable by imprisonment in the county jail not to exceed one year, by a fine not to exceed $1,000, or both fine and imprisonment.