Former city of Healdton treasurer Karen Kardaleff won’t test the state’s case against her in preliminary hearing proceedings.
District Attorney Craig Ladd said Tuesday a conference between prosecutors and Kardaleff’s defense attorney, Charles Milor, resulted in Kardaleff’s decision to waive her rights to the pretrial hearing. Kardaleff is charged with embezzling an estimated $80,000 from the city of Healdton’s coffers.
Ladd filed the charge against the former city treasurer Feb. 25. The charge accuses Kardaleff of using her position as treasurer for the city of Healdton and Healdton Utilities Authority to misappropriate bank deposits for her own use through “utilization of a check-for-cash scheme and a simple cash larceny scheme.” While a warrant was issued for her arrest, the district attorney agreed to allow her to voluntarily turn herself into the court.
The charge is based on a state audit covering July 1, 2009 to June 30, 2012. State auditors also reviewed records supplied by the district attorney’s office regarding five checking accounts and two savings accounts belonging to Kardaleff which showed deposits made into three of those accounts within a week of cash shortages in city accounts. City officials requested the audit when it became apparent money was missing, and included information supplied by the local CPA firm which conducted the city’s annual audits. Rahhal, Henderson, Johnson PLLC, CPA, indicated in both 2010 and 2011 the firm had been unable to complete its audits due to discrepancies and insufficient records.
Kardaleff is currently free pending the outcome of the case against her after posting a $10,000 bond. Formal arraignment is set for 9 a.m. May 7.