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Wednesday, May 30, 2007

Social worker goes on spending spree with tax payer's money.

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posted by Bob at Wednesday, May 30, 2007

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Blogger Bob said...

Social worker accused of huge spending spree with state money mistakenly sent to her
Hopkins social worker in jail for allegedly cashing, spending $2.5 million check. State erroneously sent the woman the money.

By Rochelle Olson, Star Tribune

Last update: May 30, 2007 – 1:25 PM


A Hopkins School District social worker erroneously given $2.5 million by the state faces four felony counts after she allegedly spent the money with her boyfriend on luxury automobiles, a U.S. Treasury bond and an individual retirement account.
Sabrina Walker, 37, appeared in Hennepin County Court on Wednesday, but did not enter a plea. District Judge Janet Poston set her bail at $200,000. Although the vast majority of the assets are frozen and Walker has no criminal convictions, Poston said she is concerned about a $100,000 cashiers check given to a former boyfriend as well as at least $20,000 in cash that is unaccounted for.

"This is obviously an unusual situation," Poston said.

Walker faces four felony counts: Theft by swindle, loss of property, failure to pay over state funds and concealing criminal proceeds over $5,000. Her boyfriend Charles Lockhart faces the same charges.

Both were initially arrested Friday without warrants but released when a judge failed to find probable cause, according to court testimony. Walker was arrested again Tuesday, but Lockhart is at large, Assistant County Attorney Emery Adoradio said.

On March 29, the state Department of Human Services erroneously issued a check to Walker for $2,596,315 through the state's accounting system, according to the complaint. Walker had a state vendor number because she was paid $84 in October as a witness for testimony in Hennepin County District Court. The bigger check cleared the state treasury on April 4.

Two days earlier, Walker and Lockhart opened a joint portfolio account at Wells Fargo Bank at 80 S. 6th St. The account provided for checking privileges with the $100,000 opening deposit and a linked brokerage account of $2.4 million. Walker and Lockhart each also withdrew $10,000 in cash, according to the complaint.

Slightly more than a week later, Walker bought a certificate of deposit for $500,000 and IRAs for the tax years 2006 and 2007 for $8,000. More than a week after that, Walker and Lockhart met with a bank financial consultant and bought a U.S. Treasury bond worth $500,000, the complaint said.

The two, who share an address in a home owned by Walker in the Camden Neighborhood of Minneapolis, also made various purchases with the money, including $5,500 in jewelry and $3,817 at Best Buy. They spent $2,069 in limousine services on April 18 and 27.

In April, Walker also bought a 1969 Buick Electra for $5,400 and a 2006 Chrysler Crossfire for $34,861. Both are titled to Walker, the complaint said. In May, Walker bought two more vehicles: a 2003 Land Rover Range Rover for $38,967 and a 2009 Land Rover LR2 for $39,971, the complaint said.

She also withdrew $100,000 in the form of a cashier's check to the former boyfriend and $20,000 in cash on May 17, the complaint said.

DHS learned of the check when Walker called a financial operations employee on May 17 and asked why she was sent the check. The employee called Walker back and told her she received the check in error and should return it immediately. Walker refused and told the employee her lawyer would be calling the state. She then hung up, the complaint said.

Lockhart's next court appearance June 12.

Larsen had argued against bail for Walker, saying his client has worked as a social worker for several years, owns a home and is rooted in the community.

She is represented by two Lindquist and Venum lawyers: Terry Fleming on the civil issues and Mark Larsen on criminal matters.

The two noted that their client did not oppose an asset freeze issued by another judge more than a week ago. "This should be a civil matter. We were cooperating with the attorney general's office," Fleming said.

Larsen added, "It's disappointing when you're cooperating to see an arrest."

His client was subdued and unusually polite in court. She is working on a master's degree. "This is a smart, articulate, intelligent individual," he said.


Rochelle Olson • 612-673-1747

5:39 PM  
Anonymous Anonymous said...

Bottom line this woman her guy are thieves.

12:17 AM  
Anonymous Anonymous said...

2nd suspect in theft of $2.6 million state check is under arrest
Boyfriend turns self in, appears in court in $2.6 million check case. State mistakenly sent the money to woman.

By Rochelle Olson, Star Tribune

Last update: June 01, 2007 – 12:26 PM


The second defendant in the case of the misdirected $2.6 million state check has turned himself in and must post $200,000 bail if he wants to get out of jail before his next court date June 15.
Charles Lockhart, 28, did not enter a plea and was not allowed to speak during his brief appearance today. His lawyer, Lynne Torgerson, said she expects her client to plead not guilty to the four felony charges including theft by swindle, loss of property, failure to pay over state funds and concealing criminal proceeds.

In asking for $10,000 bail, Torgerson also told Judge Janet Poston there is a good chance the charges might ultimately be dismissed because her client has done nothing wrong.

Poston, however, said she is concerned about at least $120,000 in cash that is unaccounted for. Assistant Hennepin County Attorney Emery Adoradio also noted that Lockhart doesn't have a job, making him more of a flight risk.

Lockhart, whom his lawyer said has a 9-year-old child, shares a home in Minneapolis with his girlfriend Sabrina Walker, who was mistakenly sent the check that should have been made out to Hennepin County Medical Center.

The pair is alleged to have gone on a spending spree with the money that included five cars - one was added on Friday - jewelry, stereo equipment, individual retirement accounts and a U.S. treasury bond worth $500,000.

Walker appeared in court on Wednesday. Poston also set her bail at $200,000. She remains in jail, according to her lawyer Mark Larsen.

An arrest warrant was issued for Lockhart on Tuesday when authorities were unable to locate him with Walker. He turned himself in late Thursday.

Larsen was the one who reported to Adoradio that another car was involved. He said he provided the information in the interest of cooperation and "our legitimate interests in not having guns pointed at the heads of people. If the state wants to meet us on that path, I'm prepared to walk that path," he said.

When Walker was initially arrested last Friday in her bathrobe, she had a gun pointed at her head by police, Larsen said.


Rochelle Olson • 612-673-1747 • raolson@startribune.com

1:47 PM  

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