North Putnam suspect opts for jury trial

Seemingly moments away from an executed plea agreement Thursday morning, a 47-year-old Roachdale woman will now put her fate in the hands of a Putnam Circuit Court jury.

Judge Matthew Headley set a March 30 jury trial in the case of Kara L. Smith, a former North Putnam School Corporation employee indicted by a Putnam County Grand Jury last June on charges she misappropriated corporation funds.

A plea agreement document filed Jan. 21 in the Clerk's Office had been signed by Smith, as well as her court-appointed lawyer, Sidney Tongret, and Putnam Prosecutor Tim Bookwalter. All that remained to make the plea agreement binding was the acceptance of Judge Headley.

However, at the outset of Smith's hearing Thursday, Tongret asked the court to reject the plea agreement and set the case for trial.

The plea agreement would have seen Smith plead guilty to identity deception, a Level 6 felony, punishable by six months to 2-1/2 years in jail, while a second Level 6 felony, counterfeiting, would have been dismissed.

Representatives of North Putnam schools were in the audience Thursday, set to testify for the prosecution but were not called upon during the brief hearing.

Smith is facing two felony charges -- counterfeiting and identity deception -- for allegedly misusing the school's Sam's Club account while she was treasurer at North Putnam Middle School, a position she held from December 2001 through June 30, 2012 when she took a job at the high school.

A six-member jury instead of the traditional 12 will be seated since Smith is facing Level 6 felonies.

Judge Headley asked both sides if calling 25 potential jurors would be enough.

That depends, Tongret said, on how much publicity the case generates between now and March 30.

He went as far as suggesting that media "rehashing" of the case might "poison the jury pool."

The attorneys were given until March 23 to file any new motions in the case.

The Grand Jury indictment indicated reported irregularities between Jan. 1, 2008 and Jan. 9, 2013 during which time Smith allegedly signed checks purporting to be a different person or reported having the authority of someone who did not give her such authority.

Smith "did knowingly or intentionally obtain, possess, transfer or use the identifying information" of then-North Putnam Middle School Principal Terry Tippin without his consent or "with the intent to assume the identity of Tippin," the indictment noted.

It also alleged Smith concealed financial statements and bills from other administrators and made payments from her personal account in an effort to hide the fact the account was delinquent.

The probable cause affidavit in the case indicates Smith may have misappropriated "at least $4,848.84 in funds and possibly in excess of $10,000."

The investigation unfolded after school corporation Treasurer Tanya Pearson received a Dec. 12, 2012 phone call from Sam's Club, advising that the North Middle School balance was overdue by more than $400 while the account carried an outstanding balance of $4,691.96.

School policy prohibits any outstanding balance on such credit cards, officials noted, and investigators were advised the Sam's Club account had been closed since March 2010.

An Indiana State Police investigation noted the corporation received a Jan. 8, 2013 invoice putting the outstanding balance at $4,848.84 with late fees and interest charges having accrued.

Examining the online statement, Pearson noticed payments were being made from a Hoosier Heartland Bank account with same last four digits as the account in which Smith's payroll checks were deposited. Funds from Smith's Health Savings Account also were reportedly being used to pay on the closed Sam's account.

However, the last payment made on that account was $200 on Oct. 29, 2012.

During a Jan. 9, 2013 meeting with North Putnam Supt. Dan Noel and then-Principal Alan Zerkel, Smith reportedly said the account had gotten out of control and she had been making payments because she "felt guilty."

Court records note Smith told school officials she never used the school's Sam's Club card to buy anything personally.

However, her employment with North Putnam was terminated after meeting with Noel and Zerkel.

Meanwhile, a vendor history report showed that someone had been paying Sam's Club by using middle school checks after the account had been closed.

The investigation indicated approximately $5,655.94 in checks had been written between June 2010 and April 2012 "with no receipts for explanation."

It also alleged Smith had used Tippin's signature stamp to complete the transactions.

Prosecutor Bookwalter noted Thursday that Smith has paid back all the alleged misappropriated funds.