Bainbridge Island Review


Accused embezzler pleads guilty

Bainbridge Island Review Staff Writer
May 3, 2013 · 12:19 PM

The Kingston woman arrested on Bainbridge Island for embezzlement has pled guilty and has been sentenced to more than a year in jail.

Karen Schwarz, 53, of Kingston, was arrested for embezzlement in January after it was discovered she stole funds from the Camellia Loop Apartments. She then placed the funds in a secret bank account in her name.

Schwarz pled guilty to the charge in March and was sentenced in April to

14 months in jail.

But Schwarz isn’t finished in the courtroom. She will face a restitution hearing on June 28.

The owner of the Camellia Loop Apartments contacted Bainbridge Island police in July 2012 after he discovered several thousand dollars missing from the business. At this time, tenants were also receiving late notices for rent they had already paid.

Further investigation revealed that tenants’ checks had been deposited into a bank account in the name of Madrona Enterprises Group, a company registered in Oregon and owned by Schwarz.

Schwarz had set up the account in August 2011.

Detectives found 46 checks deposited into the account — totaling more than $30,700 — between August 2011 and May 2012.

Schwarz also had a previous history of criminal convictions in Oregon including forgery, first-degree theft and first-degree aggravated theft.

Schwarz was also previously investigated by the McMinnville Police Department in Oregon for stealing four company checks, forging signatures and cashing them.

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