School counselor charged for exploiting $2.5m check error

(AP) A clerical error by the state sent a check worth nearly $2.6 million to a Hopkins school counselor who then spent thousands of dollars on a sports car, jewelry and electronics before reporting the mistake, prosecutors said.

The Hennepin County attorney's office charged Sabrina Walker, 37, with four felonies in the case, including theft by swindle and concealing the proceeds of a crime. The charges were filed Tuesday. She was jailed later that day.

Eileen Harvala, Hopkins district spokeswoman, said Walker was put on administrative leave under the matter was resolved. She said Walker's duties included "providing personal, social and academic support for students."

On Wednesday morning, Walker appeared in Hennepin County District where bail was set at $200,000. She remained in the county jail, officials said. Her next court appearance was scheduled for June 12.

The criminal complaint said the state's accounting system was handling money for the Department of Human Services which was intended for the Hennepin County Medical Center, when an errant keystroke issued the check to Walker instead of the hospital.

Walker was in the state's system because she was once paid $84 as a court witness. Investigators found that Walker's vendor number in the state system was only one number off the hospital's nine-digit number.

The check was mailed to Walker's Minneapolis address around March 29 and cleared the state treasury on April 4, 2007. Bank records showed Walker and a man she lived with opened a joint account with the money. Walker reportedly told a bank teller the check was a settlement with the state.

Walker bought a $500,000 certificate of deposit and funded two retirement accounts. Later they bought a $500,000 Treasury bond, again telling a financial adviser the money came from a settlement. When pressed, they said the details were secret.

A warrant was issued for the man, Charles Lockhart of Minneapolis, who was also charged in the case. He remained at large Wednesday.

In the meantime, investigators also claim the pair spent $5,500 on jewelry, $3,817 at Best Buy, $2,069 on limousine services. Walker also bought a nearly $35,000 Chrysler Crossfire coupe and a 1969 Buick Electra for $5,400.

On May 17, more than a month after opening an account for the money, Walker called the Department of Human Services and left a voice message asking why the department sent her a check for nearly $2.6 million.

When a department employee returned the call and told Walker to return the money immediately, Walker allegedly refused and said her attorney would contact the department. She did not leave her lawyer's name.

Department workers attempted to contact Walker, but had no success.

Police said later that day, Walker moved $50,000 of the DHS money from one account to another, bought two Land Rover luxury SUVs and issued a $100,000 cashier's check to a man believed to be her former boyfriend.

On Wednesday, the Department of Human Services said it would move aggressively to recover the money. It also said it had informed the Legislative Auditor about the case and was working into improve internal controls on manual payments.