Woman accused of embezzling $230K from Michigan school

An Eau Claire woman has been charged with stealing nearly $230,000 while serving as secretary/treasurer at a private school in Berrien Springs.

Sarah Kurtz, 50, was arraigned Thursday before Berrien County Trial Court Judge Charles LaSata on a charge of embezzling $100,000 or more, a 20-year felony. 

Berrien County Prosecutor Michael Sepic said Kurtz is alleged to have taken the money between 2011 and 2018 while working for the Village Seventh-Day Adventist School. Last November a letter from Village Seventh-Day Adventist Church and School officials to church and school families stated that the school had been “defrauded approximately $229,000.” A copy of the letter was provided to The Herald-Palladium by a school parent.

At that time, Sepic said an investigation was underway by state police, but no charges had been filed. He said Friday it is now alleged that in her position as secretary/treasurer, Kurtz allegedly embezzled money by means of automatic bill payments, use of the school’s debit card for personal purchases, fund transfers to a personal account, and by cash payments. 

At her arraignment Thursday, bond was set at $10,000, with 10 percent posted for her release, Sepic said. Future court dates have yet to be set because, Sepic said, LaSata disqualified himself from hearing the case and other judges might do the same. Sepic said Friday he had not yet seen LaSata’s disqualification sheet so could not state a reason for the disqualification.

Sarah Kurtz is the wife of Berrien County Sheriff’s Lt. Martin Kurtz, who until recently was commander of the Marine Division. Sheriff Paul Bailey said Friday that with the retirement of Dan Jewell, Kurtz will become the department’s training lieutenant, and Fred Laesch will be in charge of the Marine Division. Bailey said the re-assignment had nothing to do with the case against Kurtz’s wife.

Sepic said that as part of the investigation, police looked into whether Martin Kurtz was aware of his wife’s activities related to the alleged embezzlement, and no evidence of that was found.

In the letter last fall to school and church families, the church pastor and school principal said that through restitution or insurance, the school will recover the lost funds. The officials said further that stricter internal controls and tighter systems of accountability have been implemented, and that the school’s budget is on solid ground.