Mound woman pleads guilty to swindling two organizations


A Mound woman pleaded guilty to six counts of theft by swindle, Hennepin County Attorney Mike Freeman announced Wednesday.

Alison Klug (Reily), 37, pleaded guilty Monday to stealing $181,500 from the North Hennepin Community College Foundation and $19,000 from Tonka Alano Society. The Hennepin County Attorney’s office is seeking 46 months in prison when she is sentenced on July 24.

According to the criminal complaint, the foundation, which is located in Brooklyn Park, hired Klug in 2014 as an independent contractor to be a part-time bookkeeper. 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 at her regular time and never returned to work.

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 saw that between mid-September and Nov. 3, she made regular deposits with checks from the Tonka Alano Society. 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.