Waynesboro woman pleads guilty to embezzling $465,000 from retirement home

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AUGUSTA COUNTY, Va. (WHSV) — A Waynesboro woman will spend three years behind bars for embezzling nearly half a million dollars from an Augusta County retirement home.

Marshall allegedly embezzled over $465,000 from a local retirement community. | Credit: WHSV

Kathy Marshall, who worked for Stuarts Draft Retirement Community for about 14 years, was indicted by an Augusta County grand jury on seven counts of embezzlement earlier this summer.

On August 13, she pleaded guilty to all seven counts and was sentenced to 10 years in prison. Seven of those years were suspended, giving her a total active sentence of three years. Afterward, she'll face 10 years of probation, with five of the years supervised.

Police said she had been writing checks and later deleting checks from company records over a seven-year span, from 2012 to 2018, allowing her to take over $465,000.

The issue was discovered in January of this year, when officials also found that she had been altering bills that had previously been paid to cover her thefts.

"Obviously it's been a very sad and disappointing situation for us," said Rodney Martin, one of the owners of Stuarts Draft Retirement Community. "But we are very grateful that we're in good financial standing."

Martin added they are working to make sure something like this does not happen again.

"We have been working with our accounting firm to make sure this kind of fraudulent activity does not occur again," Martin said.

Martin said they're also working with their insurance company, and are being reimbursed for a substantial amount of what was stolen. No resident accounts were ever compromised.

Marshall is heading to jail on Tuesday night.