Feb 11, 2006 1:25 pm US/Central
Prosecutors: Deputy Stole Money For Gambling
St. Paul (WCCO) ―
A Ramsey County Sheriff's Deputy has been charged with stealing money from the department and using the money to gamble at Treasure Island Casino.
Lori E. Kratzke, 42, of Woodbury, Minn. was charged Friday with three counts of felony theft by swindle.
According to the criminal complaint, Kratzke was a sheriff's deputy in July 2005, when an account clerk noticed discrepancies in a foreclosure escrow account. Kratzke was in charge of foreclosure sales and escrow accounts at the time.
Investigators said nearly $50,000 in cash was paid to Kratzke on April 28, 2005 at a foreclosure sale. That money was never put into the escrow account, investigators said.
After an account clerk noticed the discrepancies and notified a supervisor, an audit was completed on Kratzke's transactions. Around $200,000 was missing, authorities said.
"There was as shell game taking place in that she was attempting to cover one shortage in one account with funds from another account," Ramsey County Sheriff Bob Fletcher said.
Kratzke was transferred out of the civil process unit. After 18 years on the job, she resigned her position two days after the transfer, when a formal investigation began.
"We were able to determine that she had lost all of those funds while gambling at Treasure Island Casino," Fletcher said.
A search warrant executed at Kratzke's house found more than 150 IRS casino winnings receipts from Treasure Island, which totaled more than $400,000. Investigators also found Kratzke's bank statements, which showed a deposit of $45,000 on May 2, 2005.
Investigators said they found an increase in gambling activity by Kratzke in March and April of 2005, but that activity increased substantially after the nearly $50,000 theft on April 28, 2005. Kratzke won more than $104,000 at Treasure Island from April 28, 2005 to April 30, 2005, the complaint said.
Prior to the gambling increase, police said Kratzke had $15.74 in her bank account.
"We had no problems with her as an employee," Fletcher said. "It's just another example of where gambling can completely distort someone's thinking."
During the investigation, authorities also found another deposit amount, this time for $51,200, from March 2005 that was not deposited into an escrow account. Prosecutors allege Kratzke also took that money.
During a police interview, Kratzke admitted to the two thefts. In a later police interview, Kratzke also admitted to a third theft, which involved writing an unauthorized check from the Ramsey County Sheriff's process escrow account.
If convicted on all counts, Kratzke could face up to 60 years in prison and a $300,000 fine.
"As tough as it was to watch this transpire, it's the best thing for her," Fletcher said. "She needs to get some help for her addiction."
(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)
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