School union treasurer accused of stealing $18K in Kennewick employee dues over 10 years

A Kennewick school transportation employee allegedly embezzled $18,000 in union funds over the course of her 10 years as the treasurer.

Karen Ann Steele, 63, reportedly told investigators that she started taking the money after being the victim of a scam and owed “a substantial amount of money,” according to court documents.

She is charged in Benton County Superior Court with first-degree theft and is out of jail awaiting trial.

Starting in 2013, Steele was the treasurer for the Kennewick Transportation 103 chapter of the Public School Employees of Washington Local 1948.

In that position, she was the only person in charge of handling the chapter’s money. Union dues paid by employees are divided between 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 Aid and Costco, according to court documents. In all, there was $18,000 missing, according to court documents.

Chapter president Peggy Morgan discovered the missing money and reported it to police in March.

When Steele started to talk to investigators, she allegedly said she used the fact that no one checked the finances to take money from the chapter’s account.

She allegedly created a bank account where she would transfer the money and could take cash withdrawals through an ATM.

Steele allegedly admitted to taking just over $9,600. She told Morgan about the theft and tried to repay some of the money, said court documents.

She also told the investigator that she regretted taking the money.