Kennewick school bus union treasurer admits to stealing dues for more than 10 years
A Kennewick school employee has promised to repay $14,000 after admitting to years of stealing cash from her bus driver union.
Karen Ann Steele, 64, the union’s former treasurer, started this week by paying $2,500 as part of an agreement that will keep her out of jail even after pleading guilty to second-degree theft.
Deputy Prosecutor Tyler Grandgeorge said in court that Steele’s payment was one of the key reasons prosecutors agreed to a first-time offender sentence.
“Ms. Steele has been trying to make efforts to pay back the full amount,” he said, adding that she hasn’t been able to yet, but he appreciated the effort.
10-year-old theft
Steele was initially accused of embezzling $18,000 in union funds over the course of her 10 years as the treasurer, according to court documents.
She initially stepped into the role in 2013 and was the only person in charge of handling the chapter’s money. The dues paid by the employees are divided between Washington state and local union chapters.
Starting early in her tenure, she began using the union money to make thousands of dollars in purchases at various stores, including Rite Aide and Costco, according to Benton County court documents.
Chapter president Peggy Morgan discovered the missing money and reported it to police in March 2023.
Steele told investigators she used the fact that no one checked the finances to take money from the chapter’s account. She said she started stealing money after she was the victim of a scam and she owed a “substantial amount of money,” according to court documents.
She created a bank account where she would transfer the money and could take cash withdrawals using an ATM.
Steele admitted to Morgan that she took the money and tried to repay some of it.
Sentencing deal
As part of the agreement, Steele will serve six months on probation and is required to pay $14,000 in restitution to the Kennewick Transportation 103 chapter of the Public School Employees of Washington Local 1948. She still works for the district.
Grandgeorge said union officials are happy to get some of the money back and signed off on the agreement.
While Steele didn’t talk during the sentencing, her attorney Karla Kane said her client is very sorry for her conduct.
“I think initially when it started, she had every intention of paying it back,” Kane said. “She is going to work hard to pay it back.”
Steele, who was initially charged with first-degree theft, has no criminal convictions. She faced up to two months in jail after pleading guilty.
The agreement called for her to be sentenced under a first-time offender waiver. Judge Jackie Shea Brown followed the agreement.
