Woman who stole thousands from Prairie City School District has 2005 conviction set aside | Local News

The decision means all official records in the case, including the record of the arrest and the charges filed, will be sealed — hidden away from public view.

“Upon entry of the (court) order,” the law states, “the person for purposes of the law shall be deemed not to have been previously convicted, arrested, cited or charged.”

In other words, it will be as though Kimball, now 58 and living in Cove, never committed the crimes of which she was convicted.

But the people of Prairie City have not forgotten what she took from them.

A statement on behalf of the Prairie City School Board and Superintendent Casey Hallgarth, submitted during the expungement proceeding, captures some of their feelings.

“(Hallgarth) said he and the board are 100% against any sort of relief,” the statement reads in part. “Casey said not one person considered or even hinted that they would be OK with setting aside the conviction.”

Kim Kimball grew up in Prairie City and graduated from Prairie City High. In 1997 she went to work for her alma mater, landing a job in the business office of the Prairie City School District.

Everything seemed fine at first, but in early 2003, a local merchant came forward with information about “a pattern of activity” that raised questions about Kimball’s financial dealings, according to a story in the Blue Mountain Eagle, and the district asked its auditors to take a close look at the books.

The audit turned up enough discrepancies that Kimball was confronted, questioned and fired from her job.

On June 12, 2003, she was arrested by Prairie City police on 28 counts of first-degree forgery and first-degree aggravated theft.

The school board declined to comment on the matter to the Blue Mountain Eagle at the time, but an attorney for the Crook Deschutes Education Service District issued a statement on the board’s behalf, which the newspaper published.

“The district’s investigation revealed that Mrs. Kimball had not followed district procedures for processing payroll draws and issuing reimbursement checks to herself, which was the basis for the dismissal,” the statement said. “Unreimbursed payroll draws and improperly reimbursed funds are preliminarily estimated to exceed $70,000.”

Following Kimball’s arrest, stories from the Eagle’s archives state, an additional investigation was conducted by the Oregon State Police Financial Crimes Unit, and in late January 2004 the Oregon Department of Justice handed down a 40-count indictment. It included three counts of aggravated first-degree theft, seven counts of first-degree theft and 12 counts of first-degree forgery, all felonies. She was also charged with 18 misdemeanors — nine counts each of official misconduct and tampering with records.

The court records — which had not yet been sealed as this story was being reported — show that Kimball reached a plea deal with prosecutors after a year of legal wrangling.

On March 17, 2005, Kimball pleaded guilty in Grant County Circuit Court to two counts of aggravated theft in the first degree, a Class B felony; one count of forgery in the first degree, a Class C felony; and one count of official misconduct in the first degree, a misdemeanor. The other 36 counts against her were dismissed.

Judge Greg Baxter sentenced Kimball to serve six months in the Grant County Jail, perform 120 hours of community service, submit to probation for three years and pay $74,000 in restitution and fines.

In court, Oregon Assistant Attorney General Tim Thompson said Kimball’s crimes occurred throughout the six years of her employment by the Prairie City School District and that she eventually stole an estimated $70,756.82 from the district’s coffers, the Eagle reported at the time.

“She accomplished this by forging payroll checks, taking early draws and writing checks to herself for travel expenses and purchases,” Thompson said.

Kimball’s defense attorney, Robert J. Moon, told the judge that he had no explanation for his client’s behavior.

“She is 40 years old and a graduate of Prairie City High School,” the Eagle reported. “She has relatives who work for the school district as teachers, and her mother has a business in Prairie City. She has been married for a number of years, has two teenage children and has coached volleyball and basketball in the Prairie City School District. It just doesn’t make any sense.”

On June 30, 2020, Kimball filed a motion in Grant County Circuit Court to have the record of her crimes against the Prairie City School District expunged. But Grant County District Attorney Jim Carpenter objected.

Carpenter noted that Kimball had been convicted of two Class B felonies — the aggravated first-degree theft charges — in March of 2005, just over 15 years earlier. ORS 137.225, he pointed out, did not allow a Class B felony conviction to be set aside until 20 years after the date of conviction or release from incarceration, whichever was later.

Judge Raschio denied Kimball’s motion.

The 2021 Legislature made a number of revisions to ORS 137, including shortening the timeline to request expungement of a Class B felony to seven years after conviction or release.

On May 5 of last year, Kimball again applied for expungement. This time, there was nothing Carpenter could do to stop it.

“It’s very defendant-friendly,” Carpenter said of the revised law. “The judge has very little discretion in terms of the decision.”

In an affidavit filed with her motion, Kimball stated she had not been convicted of any other crimes since completing her probation and was not currently facing any criminal charges, thereby meeting the standards to have her earlier conviction set aside.

Her new attorney, Michael Breiling, cited a section of the law that requires a judge to grant a properly filed expungement request unless there is “clear and compelling evidence” that the person making the request poses a risk to public safety.

The only recourse crime victims have in an expungement proceeding is the opportunity to be heard before the conviction is set aside.

A victims’ rights advocate collected a statement from Hallgarth, the Prairie City school superintendent, that was filed with the court.

“(Hallgarth) said he and the board are 100% against any sort of relief,” the statement reads. “The board members said it was 100% not an accident and premeditated and that she was writing herself checks within a month of being hired, had done this before, and the cash never was reimbursed that they knew she took. Casey said that the money she stole put the school district back approximately 10 years in funding at the time. The board members feel she got enough breaks with the cash not being reimbursed and jail being reduced. They are worried about the community and feel the community will be very angry and upset. They worry she would do this again if she had the chance. Casey would like to speak to you or the judge if there is a hearing.”

A hearing was set. Breiling, who lives in Pendleton, filed a motion asking that he and his client be allowed to participate by phone rather than appearing in person in the Canyon City courtroom, citing the long drive and the potential for adverse weather conditions.

Judge Raschio granted the motion — but swiftly reversed his decision after Carpenter filed an objection.

“Allowing defendant to appear remotely,” Carpenter argued, “further demeans the victim and sends the message that their voice is meaningless in this process.”

Hallgarth did not attend the Jan. 9 hearing at which Kimball’s conviction for pilfering Prairie City School District funds was set aside. But Kimball was there, forced to listen as the superintendent’s statement was read aloud.

In Carpenter’s view, that was a small price to pay for having all official records of her crime placed under seal.

“I think it’s reasonable, especially in her case,” the district attorney said. “She’s getting, in my opinion, a substantial benefit here. She can come and listen to how she’s affected some other people.”

Kimball did not respond to a request for comment relayed through her attorney.

But Hallgarth, the Prairie City school superintendent, did agree to an interview. He said the district is still feeling the effects of Kimball’s crimes.

While Hallgarth didn’t work for the district at the time, he said some longtime school board members are convinced that Kimball stole more than the amount she paid in restitution.

“I know she didn’t murder anyone or anything like that,” Hallgarth said, “(but) the big thing is she stole from a school — that’s money that could have helped kids.”

In addition to putting a temporary dent in the district’s finances, he said, Kimball’s thefts created a lasting sense of distrust that continues to be felt today. As an example, he pointed to the school board’s insistence on setting aside up to 25% of the district’s general fund balance as an emergency reserve — well above the 15-20% cushion many other districts maintain.

“The reason why our school has such a high contingency is because of that fear factor that something crazy might someday happen,” Hallgarth said.

Even though it’s been nearly 20 years since Kimball’s crimes were committed, Hallgarth added, many of the school board members were shocked when they realized that the record of her conviction could be expunged — and he doesn’t blame them.

“Sometimes you can’t let go of things because the wounds are too deep,” he said.

“I think everybody deserves a second chance, but it’s a different beast when you steal from kids.”