Mound woman embezzled $200,000 from two organizations


A Mound woman was charged with six counts of theft by swindle for stealing more than $200,000 from the North Hennepin Community College Foundation and the Tonka Alano Society, Hennepin County Attorney Mike Freeman announced Tuesday.


Alison Craft Klug, 37, is expected to make her first court appearance Wednesday. The county attorney’s office is seeking bail of $70,000.


According to the criminal complaint, the foundation, which is located in Brooklyn Park, hired Klug in 2014 as a bookkeeper through a temporary agency. By July 2015, she was hired as a full time employee. During the annual audit in September 2016, Klug answered all the questions posed by the outside auditor, left for home at her regular time and had been unreachable since.


The concerns revealed in the audit prompted the foundation to conduct an internal investigation and they determined that Klug had generated duplicate paychecks for herself, created fictitious payees in the bookkeeping database as the people who were receiving those paychecks and forged her supervisor’s signature on the duplicate paychecks, the complaint states.


A Brooklyn Park Police investigator obtained Klug’s bank records and noticed that between mid-September and Nov. 3, she made regular deposits with checks from the Tonka Alano Society, an organization for recovering alcoholics. When the detective contacted the society, he was told that Klug was the lead treasurer, a volunteer position, and she should not be receiving any money from the organization. When society officials checked their account, it had been drained down to $5, according to the complaint.


Klug stole more than $181,500 from the North Hennepin Community College Foundation and $19,000 from Tonka Alano Society, the complaint states.

Criminal Complaint (PDF)