Oxnard Woman Who Embezzled from Foster Family Agency Sentenced to 41 Months in Federal Prison

LOS ANGELES—An Oxnard woman who embezzled over $700,000 from the Inner Circle Foster Family Agency was sentenced today by United States District Judge Christina A. Snyder to 41 months in federal prison and ordered to pay restitution of $708,924 to Inner Circle.

Kathaleen Prince, 62, previously pleaded guilty to a four-count indictment charging her with misapplication of property of an organization receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). Inner Circle is a licensed adoption agency that offers a variety of programs and services, including foster care, adoption, professional parent, and outpatient counseling for victims of crimes. The agency is a non-profit organization located in Van Nuys, California and receives federal funding from the U.S. Department of Health and Human Services.

Prince was employed by Inner Circle as a bookkeeper and accountant from April 2002 to February 2009. Beginning in 2006 and continuing through 2009, Prince embezzled funds from Inner Circle by forging the signature of authorized persons on checks drawn on the bank accounts of Inner Circle that were made payable to herself and to her creditors, including checks that were used to pay for Prince’s personal credit card bills, cell phone bills, the mortgage for a boat that she had lived on, and a vacation in Hawaii. In addition, Prince manipulated the books and records of Inner Circle to conceal her actions and falsely represented the agency’s financial condition to the agency’s Board of Directors. Prince was fired by Inner Circle in February 2009 when her thefts were discovered.

In sentencing Prince to a 41-month prison term, Judge Snyder noted the seriousness of the crimes committed, the vulnerability of the foster families and children who were victimized by the crimes, and Prince’s pattern of recidivism.

The investigation of Prince was conducted by the Federal Bureau of Investigation.