Former Westwood PTO Treasurer Accused of Stealing Over $40K
Kathryn Burry, of Russell Township, former treasurer for the Westwood Elementary School Parent Teacher Organization, has been charged with grand theft, a fourth-degree felony, for allegedly embezzling in excess of $25,000.
Kathryn Burry, of Russell Township, former treasurer for the Westwood Elementary School Parent Teacher Organization, has been charged with grand theft, a fourth-degree felony, for allegedly embezzling in excess of $25,000.
The Rule 4 complaint, filed Aug. 16 by the Russell Township Police Department, issued a warrant for Burry’s arrest and came on the heels of Westwood PTO filing a civil complaint Aug. 9 claiming Burry stole more than $40,000 from the PTO and accusing her of fraud, breach of fiduciary duty, conversion and unjust enrichment.
“The investigation is still ongoing, but I expect additional charges after this matter is presented to the Grand Jury,” Geauga County Prosecutor Jim Flaiz said Friday, referring to the Rule 4 complaint.
Attorney Jeffery Fanger, of Fanger and Davidson LLC, filed the civil complaint in Geauga County Court of Common Pleas against Burry — a real estate professional with RE/MAX Traditions and owner of Hipsters Children’s Consignment in Bainbridge Township.
“Defendant (Burry) commenced her term as treasurer of the Westwood PTO on or about Aug. 1, 2021,” it read. “As treasurer, (Burry) had significant authority and autonomy and used this authority to mislead and conceal financial information from the board of trustees of the Westwood PTO.”
A call to Burry for comment was not returned.
Discovery of Fraud
Westwood PTO President Krista Kalina became aware of alleged fraud around June 25, according to the complaint.
“Ms. Burry had previously provided minimal financial reports to the board despite repeated requests and had avoided multiple requests for financial information, raising concerns with me regarding the financial activities of the organization,” Kalina said in an affidavit included in the complaint.
She contacted Citizen Bank in Chester Township around June 25, upon which she learned the Westwood PTO accounts were significantly lower than Burry had led her and the board to believe, she said in the affidavit.
“I requested bank records from the bank and based upon a review of those bank records on or about June 26, 2024, I discovered Treasurer Kathryn Burry had used the Westwood PTO to pay various vendors and third parties — including her business, Hipsters, and herself — funds that were the property of Westwood PTO without authorization,” she wrote in the affidavit.
Neither Kalina nor the board were aware of Burry’s activities, but Kalina believed Burry “engaged in a pattern of misrepresentations” and presented the board with fraudulent statements, the affidavit said.
Following her discovery, the other board members were notified and a meeting was convened. The board passed a resolution demanding all books and records be turned over to them, as well as a second resolution removing Burry’s financial access, the affidavit said.
The records were provided July 22. Burry’s term as treasurer expired July 31.
“Board members and myself reviewed the financial records received from the bank and from Ms. Burry, and we have determined that there are a series of inappropriate financial transactions benefitting Ms. Burry personally and/or her business, Hipsters, and that Westwood PTO has been harmed by her actions,” the affidavit said. “Based upon our review of the records to date, I believe that the amount of funds improperly transferred exceeds $40,000.”
Per her own and the board’s review of the records, Kalina said in the affidavit she believes Burry failed to properly account for and deposit cash receipts from organization events, cut inappropriate checks and took funds through apps and ATM transactions.
The Charges
“Defendant Kathryn Burry has intentionally engaged in a complex and lengthy pattern of fraud and concealment with intent to defraud (the PTO) for the purpose of obtaining funds that were the rightful property of (the PTO),” the complaint said, adding her actions constitute intentional theft and fraud under the Ohio Revised Code.
She has acted with actual malice or egregious fraud in depriving the PTO funds used for the benefit of elementary school children, the complaint said.
“(Burry) had a duty to disclose truthful and accurate information to the president, officers and board members of the organization and repeatedly and intentionally failed to do so,” the complaint read, adding Burry was aware the reports she was giving were inaccurate.
“(Burry’s) actions and false reports constituted fraudulent concealment and were done intentionally to prevent the officers and board members from acquiring material information that would promptly lead to expose her fraudulent activities,” it read, noting the PTO has been materially and substantially injured.
Burry was entrusted to manage, safeguard and account for the PTO funds, the PTO said in its complaint, quoting the following section of the ORC relating to fiduciary duties of officers: “An officer shall perform the officer’s duties to the corporation in good faith, in a manner the officer reasonably believes to be in or not opposed to the best interests of the corporation, and with the care that an ordinarily prudent person in a like position would use under similar circumstances.”
In failing to prepare and present accurate financial reports, failing to deposit the PTO’s cash and funds and by misdirecting funds for her own use and her business’s use, Burry has not acted in good faith and breached her fiduciary duties, the complaint said.
“(Burry’s) actions were undertaken with deliberate intent to cause injury to the plaintiff and constituted reckless disregard for the best interest of the corporation,” it said, adding this merits punitive damages.
“Plaintiffs (Westwood PTO) respectfully request this Honorable Court award them damages in the amount in excess of $25,000, the exact amount to be proven at trial, statutory interest, punitive damages in an amount sufficient to curtail said willful and wanton actions, reasonable attorney fees, and costs for the action and such further relief as this court deems just and proper,” the complaint concluded.
When reached for comment, West Geauga Schools Superintendent Richard Markwardt said due to the ongoing criminal investigation, he could not comment on it or any individual who may be involved at this time.
“The West Geauga Local School District is not a party to the lawsuit nor is it named therein,” he added.
