A Post-Tribune newspaper reporter who served as treasurer of the Gary Newspaper Guild union has pleaded guilty to a federal charge of embezzling from a labor organization.

Karen Snelling, 50, of Chicago, pleaded guilty last week to the one-count indictment, in exchange for which she is entitled to a “reduction in the offense level” under federal sentencing guidelines.

In that plea agreement, filed with the U.S. District Court for the Northern District of Indiana in Hammond on Wednesday, Snelling admitted to embezzling a total of $18,100 from the Gary Newspaper Guild while serving as its treasurer from January 2000 through September 2008.

“During the time I was treasurer, I made unauthorized withdrawals of $17,500 from the Gary Newspaper Guild checking account, using automatic teller machines,” Snelling stated in the agreement. “I also took one unauthorized stipend check of $600 from the Gary Newspaper Guild checking account. I used these funds for personal purposes, even though they belonged to the Gary Newspaper Guild and I did not have authorization to use them for personal purposes. I did these actions unlawfully, willfully, and with fraudulent intent.”

The maximum penalty for embezzling from a labor organization is five years imprisonment, a $250,000 fine, a combination of both imprisonment and a fine, a three-year period of supervised release to follow any term of imprisonment, and a mandatory special assessment of $100, according to the plea agreement.

Snelling also agrees, under her plea, to make full restitution to the Gary Newspaper Guild on a schedule to be determined by the court and to waive her right to appeal or contest her conviction and sentence.

The investigation into the embezzlement began when the Gary Newspaper Guild—which represents newsroom employees of the Post-Tribune—discovered funds to be missing in early 2008 and alerted Post-Tribune managers and its parent union, the Guild said in a statement released in September. In February of this year the Guild contacted the U.S. Department of Labor (DOL).

During the Guild’s own investigation, the statement said, Snelling “repeatedly refused to provide financial documents to then president Peggy Glennie. Glennie eventually gained access to bank statements showing a string of unauthorized cash withdrawals from the Guild account, totaling more than $17,500 over a three-year period beginning in 2004. Snelling also collected a $600 check to which she was not entitled in 2008.”

“Snelling offered to make restitution to avoid criminal charges but Gary Guild officers opted to refer the case to federal authorities for prosecution,” the statement added.

“The Post-Tribune has put too many local officials on the front page for getting caught with their hand in the cookie jar for us to let this go,” Guild President Andy Grimm said in September. “We could have gotten our money back and kept our name out of the newspaper but we believe in accountability.”

The Gary Newspaper Guild will represent Snelling in any disciplinary action taken by the Post-Tribune and ensure her contract rights are protected, the statement said.

Posted 12/7/2009