The founders of Ivy Academia Charter School were sentenced Friday morning in a downtown courtroom for their roles in an embezzlement scam that netted more than $200,000 in public funding.
Yevgeny “Eugene” Selivanov, 41, was sentenced to nearly five years in state prison, while his wife, Tatyana Berkovich, 36, was sentenced to serve 45 days in county jail, perform 320 hours of community service and five years of probation.
Selivanov, the school’s former executive director, was found guilty in April of 18 counts of embezzlement by a public officer, money laundering and tax fraud. Berkovich, the former school principal and later president, was found guilty of one count of embezzlement relating to personal charges on a school American Express card.
Ivy Academia has three campuses in the San Fernando Valley, in Winnetka, West Hills and Woodland Hills. The school was known for its high test scores and rigorous curriculum.
Los Angeles County Superior Court Judge Stephen Marcus had harsh words for both defendants, but said he found Selivanov, who has a financial industry background and previously worked at Goldman Sachs, was the primary architect of what he called a “sophisticated” scam.
“He took advantage of these positions of trust,” Marcus said. “He created sham financial transactions between Ivy (Academia) and his various companies. Essentially, he’s using this school as an ATM machine.”
According to testimony during the trial, the couple used school credit cards to purchase personal items, including diapers, a “tax secrets” seminar and meals at local restaurants. They also began charging the school $32,000 a month in rent in 2008, up from $18,390 a month, because they owned the land on which the schools sit through another entity, and attempted to collect three year’s worth of past rent at the increased rate. Additionally, a plan to take over a loan held by the school resulted in an illegal transfer of nearly half a million dollars in school assets to another organization controlled by the couple, according to prosecutors.
The rent agreement and the loan arrangement were rubber stamped by a board of directors that was stacked with friends of the couple, the judge said.
“They have cast a dark shadow over charter schools,” Marcus said.
Prosecutors said they hope the convictions will be noticed in the charter school community, and bring a new set of accountability to the management of those schools.
“These were serious charges and we hope the result will be greater responsibility by the operators of charter schools to protect public funds,” said Deputy District Attorney Dana Aratani
The case attracted the attention of the California Charter Schools Association, which filed a brief in support of the couple Thursday.
“This unprecedented prosecution has sent shock waves throughout the charter school community and has stifled charter school operational freedoms. With no guidelines or set of rules on what is an “allowed” or “disallowed” expenditure, no recognition of the rules and regulations applicable to nonprofit corporations, and district attorneys and courts second guessing nonprofit corporate board’s spending decisions years after the fact, charter schools are now forced to forgo their operational flexibility and make only the basic expenditures (e.g., books, salaries etc.) out of fear of future prosecution,” the brief argued.
Berkovich and Selivanov were placed on paid administrative leave in 2010 and voluntarily resigned in 2011. The schools have continued to operate.
Despite the convictions, the court was crowded with supporters of the couple, who called them excellent educators and education supporters. Several spoke to the judge before the sentence, asking for leniency for the pair.
James Thomas, whose son attended Ivy Academia, told the judge he has since transferred his son to another school because the quality of education has declined since they resigned.
“In spite of whatever was put forward, we know that their priority was top-notch education,” he said.
Others spoke of how the couple poured in their own money in the early years just to make sure employees were getting paid and deferring their own salary. The judge said he had received dozens of letters of support.
The observers in the courtroom gallery burst into applause when the judge said he was granting requests for Berkovitch to avoid prison time.
The judge did grant a motion for a new trial on several counts involving incorrect jury instructions. Prosecutors said they are considering their options for refiling those charges, but have not yet decided.
Selivanov was taken into custody at the end of the hearing, and Berkovich was ordered to surrender for her 45 days of jail time within the next four months.
Their lawyers said they will appeal both the verdicts and the sentencing, and repeatedly said the accounting anomalies were mistakes and not intentional, and reflected the difference between charter schools — which are supposed to operate with more freedom that traditional public schools.
Berkovitch and Selivanov will return to court Nov. 15 for a restitution hearing.
Monday, October 7, 2013
NORCO, California: Booster club’s ex-treasurer charged with embezzlement
The former treasurer of the Norco High School Band Booster Club has been accused of stealing $23,000.
Katherine Aileen Chuck, 52, transferred money from the booster club bank account into her own account and used the club’s ATM card to make unauthorized withdrawals, including two at a hotel-casino, according to a declaration written to obtain an arrest warrant.
Chuck was charged with embezzlement and grand theft, according to the complaint filed Sept. 26 in Superior Court by the RiversideCounty district attorney’s office.
Chuck said in a phone interview Thursday, Oct. 3, that she is innocent.
“It’s false charges,” she said.
Chuck added that documents that could establish her innocence were lost in a fire.
She is due to enter a plea in Superior Court in Riverside on Oct. 21.
Chuck was treasurer from July 1, 2011, to Dec. 10, 2012, according to the affidavit written by Riverside County Sheriff’s Detective Angela Carranza.
In February 2013, Billie Jean Walker, the club’s president, provided investigators with documents that showed $43,700 in questionable withdrawals from the club’s account at Altura Credit Union. All of these withdrawals, Walker told Carranza, occurred while Chuck was treasurer, the detective wrote.
Bank statements showed transfers from the club’s account to Chuck’s account that also was at Altura, Carranza wrote. Also, Walker said, there were debit card transactions and ATM withdrawals from the club account that were not related to club activities.
Walker further told Carranza that Chuck was provided signature cards and other identifying information for three board members whose names were supposed to be placed on the club account. But Walker learned that only Chuck’s name was placed on the account, Carranza wrote.
An audit by an accounting company showed a possible misappropriation of band money between $28,317 and $45,068 while Chuck was treasurer, Carranza wrote. The audit further said there were $6,749 in questionable ATM withdrawals during that period, including two on Sept. 15, 2012, at the Tropicana Resort and Casino in Laughlin, Nev.
The audit included a photo from Chuck’s Facebook page showing Chuck and husband Michael posing in front of a sign that said “Welcome to Laughlin” on Sept. 14.
When Carranza interviewed Chuck on Aug. 15, 2013, Chuck admitted to using band money for her own use when she needed money and said she may have deposited money from fundraisers in her own account, the affidavit said.
Chuck also said she used band account money to purchase gift cards for her own use during a band fundraiser, Carranza wrote. Chuck told the detective that she used the band account to buy items for herself in order to hide the purchases from her husband.
“Katherine estimates she owes (the club) more than $8,000 for the personal use of their funds,” Carranza wrote.
Chuck’s case is at least the second recent criminal investigation involving a band booster club treasurer. On June 28, former Vista Murrieta High band boosters’ ex-treasurer Paul Takuya Nogaki, 55, pleaded guilty to grand theft and falsifying records.
He admitted to stealing more than $212,000 in club funds and has begun repaying the money.
Katherine Aileen Chuck, 52, transferred money from the booster club bank account into her own account and used the club’s ATM card to make unauthorized withdrawals, including two at a hotel-casino, according to a declaration written to obtain an arrest warrant.
Chuck was charged with embezzlement and grand theft, according to the complaint filed Sept. 26 in Superior Court by the RiversideCounty district attorney’s office.
Chuck said in a phone interview Thursday, Oct. 3, that she is innocent.
“It’s false charges,” she said.
Chuck added that documents that could establish her innocence were lost in a fire.
She is due to enter a plea in Superior Court in Riverside on Oct. 21.
Chuck was treasurer from July 1, 2011, to Dec. 10, 2012, according to the affidavit written by Riverside County Sheriff’s Detective Angela Carranza.
In February 2013, Billie Jean Walker, the club’s president, provided investigators with documents that showed $43,700 in questionable withdrawals from the club’s account at Altura Credit Union. All of these withdrawals, Walker told Carranza, occurred while Chuck was treasurer, the detective wrote.
Bank statements showed transfers from the club’s account to Chuck’s account that also was at Altura, Carranza wrote. Also, Walker said, there were debit card transactions and ATM withdrawals from the club account that were not related to club activities.
Walker further told Carranza that Chuck was provided signature cards and other identifying information for three board members whose names were supposed to be placed on the club account. But Walker learned that only Chuck’s name was placed on the account, Carranza wrote.
An audit by an accounting company showed a possible misappropriation of band money between $28,317 and $45,068 while Chuck was treasurer, Carranza wrote. The audit further said there were $6,749 in questionable ATM withdrawals during that period, including two on Sept. 15, 2012, at the Tropicana Resort and Casino in Laughlin, Nev.
The audit included a photo from Chuck’s Facebook page showing Chuck and husband Michael posing in front of a sign that said “Welcome to Laughlin” on Sept. 14.
When Carranza interviewed Chuck on Aug. 15, 2013, Chuck admitted to using band money for her own use when she needed money and said she may have deposited money from fundraisers in her own account, the affidavit said.
Chuck also said she used band account money to purchase gift cards for her own use during a band fundraiser, Carranza wrote. Chuck told the detective that she used the band account to buy items for herself in order to hide the purchases from her husband.
“Katherine estimates she owes (the club) more than $8,000 for the personal use of their funds,” Carranza wrote.
Chuck’s case is at least the second recent criminal investigation involving a band booster club treasurer. On June 28, former Vista Murrieta High band boosters’ ex-treasurer Paul Takuya Nogaki, 55, pleaded guilty to grand theft and falsifying records.
He admitted to stealing more than $212,000 in club funds and has begun repaying the money.
Saturday, October 5, 2013
Cheerleading Coach Embezzlement case moved to December
The embezzlement trial for former cheerleading coach Angelia Paige Harrell is being postponed once again.
Harrell’s jury trial was supposed to be held Oct. 21, but online court records now show the case to be set for Friday, Dec. 6. This is the fourth continuance for the case.
Harrell is alleged to have diverted funds from the Pulaski County High School cheerleading program for her personal use between March 2010 and October 2011. She was head coach of the varsity squad and a guidance counselor at that time.
According to records on file in Pulaski County Circuit Court, defense attorney James C. Turk Jr. requested the first continuance and the other two appear to have been joint requests of the defense and special prosecutor Erin DeHart, Bland County’s commonwealth’s attorney. No reason for the continuances is stated in any of the petitions.
Harrell was indicted in September 2012.
Harrell’s jury trial was supposed to be held Oct. 21, but online court records now show the case to be set for Friday, Dec. 6. This is the fourth continuance for the case.
Harrell is alleged to have diverted funds from the Pulaski County High School cheerleading program for her personal use between March 2010 and October 2011. She was head coach of the varsity squad and a guidance counselor at that time.
According to records on file in Pulaski County Circuit Court, defense attorney James C. Turk Jr. requested the first continuance and the other two appear to have been joint requests of the defense and special prosecutor Erin DeHart, Bland County’s commonwealth’s attorney. No reason for the continuances is stated in any of the petitions.
Harrell was indicted in September 2012.
Valley Charter Operators, Guilty of Fraud, Seeking New Trial in California
Eugene Selivanov and his wife, Tatyana Berkovich, will be back in an Los Angeles County Superior Court tomorrow, asking the judge to grant them a new trial in a case that the California Charter Schools Association says affects other charters within the LA Unified school district.
The two were found guilty in April of misappropriating more than $200,000 in public funds, embezzlement and other charges when they operated the independent charter, Ivy Academia, in West Hills. They resigned in 2010 after their arrest.
A judge will decide either to grant them a new trial or sentence them to prison. Their motions for a new trial are here and here.
Lawyers for Selivanov and Berkovich said the couple were convicted on laws that should not have applied to them and incorrect instructions given to the jury. As a result, said Ricardo Soto, a lawyer for the charter school association, which filed a brief in support of them, other charter operators have to reexamine how they conduct their own operations.
“We believe this case has a chilling effect on the autonomy and flexibility that charter schools received under the conditions they are allowed to operate,” Soto told LA School Report. “These practices are not unusual, but they will have an effect if the case is not reconsidered.”
Soto described the practices as including money spent on gift cards, meals, flowers and other items as compensation and incentives for employees, which he called a “common practice in business.”
The couple is currently free on bail, and Soto said they are likely to appeal if the judge refuses to grant a new trial. The question then, Soto said, is whether they remain free pending their appeal.
The two were found guilty in April of misappropriating more than $200,000 in public funds, embezzlement and other charges when they operated the independent charter, Ivy Academia, in West Hills. They resigned in 2010 after their arrest.
A judge will decide either to grant them a new trial or sentence them to prison. Their motions for a new trial are here and here.
Lawyers for Selivanov and Berkovich said the couple were convicted on laws that should not have applied to them and incorrect instructions given to the jury. As a result, said Ricardo Soto, a lawyer for the charter school association, which filed a brief in support of them, other charter operators have to reexamine how they conduct their own operations.
“We believe this case has a chilling effect on the autonomy and flexibility that charter schools received under the conditions they are allowed to operate,” Soto told LA School Report. “These practices are not unusual, but they will have an effect if the case is not reconsidered.”
Soto described the practices as including money spent on gift cards, meals, flowers and other items as compensation and incentives for employees, which he called a “common practice in business.”
The couple is currently free on bail, and Soto said they are likely to appeal if the judge refuses to grant a new trial. The question then, Soto said, is whether they remain free pending their appeal.
Thursday, October 3, 2013
Retired school bookkeeper faces embezzlement charges in Virginia
A former employee of the Tazewell County School System could spend the rest of her life in prison after being charged with 15 counts of embezzlement.
Tazewell County Commonwealth’s Attorney Dennis Lee said Willie Kathy Hicks, 53, also known as Kathy Keene, 53, of North Tazewell was indicted Oct. 2 on 15 counts of embezzlement by a public officer and one count of money laundering.
Lee said Hicks was an employee of the Tazewell County School System and was at Tazewell Middle School as secretary and bookkeeper at the time the investigation was started. Hicks retired from the school system earlier this year.
Lee said School Board Attorney Allen McGraw contacted his office May 19 and told them they believed money had been taken from Tazewell Middle School. Lee asked the Virginia State Police and Special Agent Joshua Stitt was assigned to the case.
Lee said Stitt, who specializes in accounting crimes subpoenaed bank records back to 2006 and estimated Hicks had allegedly taken over $300,000 from the school system.
A press release from the state police said Hicks took money from the school and school related events and deposited them in her personal account. Lee said the Commonwealth had originally planned to indict Hicks during the Sept. 10 term of grand jury.
He said Agent Stitt’s wife had a baby during the time leading up to the grand jury and he took time off to be with her. That and delays in receiving some reports led to the information needed to present an indictment arriving one day late.
Lee said the circuit court anticipated this case and some others and did not release the grand jury. They were called back Oct. 2 and presented the case against Hicks and a half dozen other cases.
Hicks was arrested and taken before a magistrate and released on bond. She will be arraigned and have a trial date scheduled. The release from the state police said the investigation is on-going.
Dr. Michaelene Meyer, superintendent of schools in Tazewell County issued a written statement and said the system would have no further comment. The school board held a called meeting Oct. 3 to discuss personnel and legal matters but took no action and released no statements.
"Upon notification of the potential irregularities in Tazewell Middle School’s accounting for school activity funds, and suspected missing monies, Dr. Brenda Lawson notified members of the Tazewell County School Board. The School Board took immediate action in this matter by informing and turning over the investigation to appropriate authorities. At this time, the division has no further comment to make regarding this matter,' the statement said.
Lee said embezzlement carries up to 20 years for each count and money laundering carries up to 40.
Tazewell County Commonwealth’s Attorney Dennis Lee said Willie Kathy Hicks, 53, also known as Kathy Keene, 53, of North Tazewell was indicted Oct. 2 on 15 counts of embezzlement by a public officer and one count of money laundering.
Lee said Hicks was an employee of the Tazewell County School System and was at Tazewell Middle School as secretary and bookkeeper at the time the investigation was started. Hicks retired from the school system earlier this year.
Lee said School Board Attorney Allen McGraw contacted his office May 19 and told them they believed money had been taken from Tazewell Middle School. Lee asked the Virginia State Police and Special Agent Joshua Stitt was assigned to the case.
Lee said Stitt, who specializes in accounting crimes subpoenaed bank records back to 2006 and estimated Hicks had allegedly taken over $300,000 from the school system.
A press release from the state police said Hicks took money from the school and school related events and deposited them in her personal account. Lee said the Commonwealth had originally planned to indict Hicks during the Sept. 10 term of grand jury.
He said Agent Stitt’s wife had a baby during the time leading up to the grand jury and he took time off to be with her. That and delays in receiving some reports led to the information needed to present an indictment arriving one day late.
Lee said the circuit court anticipated this case and some others and did not release the grand jury. They were called back Oct. 2 and presented the case against Hicks and a half dozen other cases.
Hicks was arrested and taken before a magistrate and released on bond. She will be arraigned and have a trial date scheduled. The release from the state police said the investigation is on-going.
Dr. Michaelene Meyer, superintendent of schools in Tazewell County issued a written statement and said the system would have no further comment. The school board held a called meeting Oct. 3 to discuss personnel and legal matters but took no action and released no statements.
"Upon notification of the potential irregularities in Tazewell Middle School’s accounting for school activity funds, and suspected missing monies, Dr. Brenda Lawson notified members of the Tazewell County School Board. The School Board took immediate action in this matter by informing and turning over the investigation to appropriate authorities. At this time, the division has no further comment to make regarding this matter,' the statement said.
Lee said embezzlement carries up to 20 years for each count and money laundering carries up to 40.
Former Kingwood Christian School manager gets probation in embezzlement in Alabama
A Shelby County judge this morning sentenced a Bessemer woman to a suspended jail term and placed her on probation for a charge accusing her of embezzling more than $63,000 from Kingwood Christian School in Alabaster.
Stacie S. Hollon, 43, pleaded guilty to the charge of first-degree theft of property during her appearance in Shelby County Circuit Court in Columbiana. Judge Dan Reeves sentenced her to three years of jail, but suspended the sentence and placed her on five years of probation.
Hollon also must pay $1,000 a month restitution to Kingwood Christian School for 36 months.
A grand jury indicted Hollon in January on a charge each of first-degree receiving stolen property and first-degree theft of property.
Hollon, formerly of Helena, was a financial manager at the school. Embezzlement charges arose after she was arrested for driving under the influence and receiving stolen property on May 31, 2011.
Her arrest warrant filed in court revealed that she had a bank bag belonging to Kingwood Christian School that contained $186 in cash and almost $3,450 in checks at the time. Court documents also stated that she took $63,452 belonging to Kingwood Christian School between Sept. 15, 2008, and May 31, 2011.
The theft of property charge to which she pleaded guilty this morning accused her of obtaining cash, checks, credit cards charges and ATM withdrawals totaling $63,452 from Kingwood Christian School between 2008 and 2011, according to the indictment.
Defense attorney John Medaris of Pelham told Reeves this morning that she diverted money belonging to the school "for her personal use."
The other charge in the indictment accused her of intentionally receiving $4,627 belonging to the school, according to the indictment. The charge claimed that she took the money "knowing that it was stolen or having reasonable grounds to believe it had been stolen and not having the intent to restore it to its owner."
The school, under Kingwood Assembly of God Inc., filed a lawsuit March 13 along with Cincinnati Insurance Company against Hollon and other unnamed individuals connected to theft from the institution. The case in Shelby County has a Nov. 25 non-jury trial date scheduled.
The church claims a loss of at least $117,032 due to the actions of Hollon and any others who may have participated in the theft, according to the lawsuit, which claims the embezzlement happened as early as June 2005.
Stacie S. Hollon, 43, pleaded guilty to the charge of first-degree theft of property during her appearance in Shelby County Circuit Court in Columbiana. Judge Dan Reeves sentenced her to three years of jail, but suspended the sentence and placed her on five years of probation.
Hollon also must pay $1,000 a month restitution to Kingwood Christian School for 36 months.
A grand jury indicted Hollon in January on a charge each of first-degree receiving stolen property and first-degree theft of property.
Hollon, formerly of Helena, was a financial manager at the school. Embezzlement charges arose after she was arrested for driving under the influence and receiving stolen property on May 31, 2011.
Her arrest warrant filed in court revealed that she had a bank bag belonging to Kingwood Christian School that contained $186 in cash and almost $3,450 in checks at the time. Court documents also stated that she took $63,452 belonging to Kingwood Christian School between Sept. 15, 2008, and May 31, 2011.
The theft of property charge to which she pleaded guilty this morning accused her of obtaining cash, checks, credit cards charges and ATM withdrawals totaling $63,452 from Kingwood Christian School between 2008 and 2011, according to the indictment.
Defense attorney John Medaris of Pelham told Reeves this morning that she diverted money belonging to the school "for her personal use."
The other charge in the indictment accused her of intentionally receiving $4,627 belonging to the school, according to the indictment. The charge claimed that she took the money "knowing that it was stolen or having reasonable grounds to believe it had been stolen and not having the intent to restore it to its owner."
The school, under Kingwood Assembly of God Inc., filed a lawsuit March 13 along with Cincinnati Insurance Company against Hollon and other unnamed individuals connected to theft from the institution. The case in Shelby County has a Nov. 25 non-jury trial date scheduled.
The church claims a loss of at least $117,032 due to the actions of Hollon and any others who may have participated in the theft, according to the lawsuit, which claims the embezzlement happened as early as June 2005.
Minister arrested on embezzlement charges in Idaho
A woman from Oklahoma, who recently moved to Idaho to start a pilot Bible college, was arrested Wednesday on charges of embezzlement out of Tulsa County, Oklahoma.
Melody Miles was arrested at Valley Church in Caldwell following a healing meeting where she was a guest speaker.
A tip from a KTVB viewer led to her arrest. The tip claimed that Miles was wanted in Oklahoma. KTVB independently verified the claims and discovered that Miles had warrants out for her arrest and that she and her husband Ken were in the middle of a felony embezzlement case.
We learned that Miles had two healing meetings scheduled for Wednesday, one at 10:30 a.m. at Valley Church in Caldwell and another at 7 p.m. at Life Church in Meridian.
KTVB involved police because of the possibility of Miles receiving donations without people knowing about the current charges against her.
A KTVB crew met police officers at Valley Church where they waited for Miles to finish speaking at the healing meeting she led.
When she was finished Miles and her husband Ken came out to officers who placed handcuffs on her and arrested her for the outstanding warrants.
After the arrest we spoke to lead Pastor Lynn Hardy who says Melody Miles and her husband Ken were referred to them from a church in Boise.
Hardy was surprised to see police show up to his church.
"When I was told they were here to arrest the speaker I was just stunned," said Hardy. "I was shocked. I've never had anything like that happen here before."
EMBEZZLEMENT CHARGES
Hardy says he had no idea about Miles' past, that she and her husband Ken are charged with three counts of embezzlement.
Court documents allege that between February 2008 and October 2010 the Miles were doing business as Barrington Design and Remodel Inc.
The documents outline four instances where the Miles took money and agreed to kitchen remodels and home repair, but never began work, and in most cases did not purchase any materials.
They received over $10,000 from four families and are accused of not making any or complete restitution.
Ken Miles was arrested on a warrant related to the charges in May, but Melody wasn't, leaving her warrant outstanding until Wednesday's arrest.
Hardy says neither his church, nor anyone from his congregation, gave the Miles any money.
"It's something that we absolutely have to protect our congregation and then this state and our area if those charges are indeed true, then we certainly wouldn't want to be funding their what appears to be their ministry," said Hardy.
KTVB made a lot of phone calls but have not been able to confirm whether other churches or people in Idaho gave the Miles or Miles Global Ministries any money.
Officers arrested Miles around noon and booked her into the Canyon County Jail where she can either bond out or await extradition to Oklahoma.
Valley Church in Caldwell isn't the only church the Miles have traveled to to share their message. They've spoken to a church in Boise and to Life Church in Meridian several times. We're not sure if any of those churches or its members gave any money to the Miles or Miles Global Ministries.
Melody Miles was arrested at Valley Church in Caldwell following a healing meeting where she was a guest speaker.
A tip from a KTVB viewer led to her arrest. The tip claimed that Miles was wanted in Oklahoma. KTVB independently verified the claims and discovered that Miles had warrants out for her arrest and that she and her husband Ken were in the middle of a felony embezzlement case.
We learned that Miles had two healing meetings scheduled for Wednesday, one at 10:30 a.m. at Valley Church in Caldwell and another at 7 p.m. at Life Church in Meridian.
KTVB involved police because of the possibility of Miles receiving donations without people knowing about the current charges against her.
A KTVB crew met police officers at Valley Church where they waited for Miles to finish speaking at the healing meeting she led.
When she was finished Miles and her husband Ken came out to officers who placed handcuffs on her and arrested her for the outstanding warrants.
After the arrest we spoke to lead Pastor Lynn Hardy who says Melody Miles and her husband Ken were referred to them from a church in Boise.
Hardy was surprised to see police show up to his church.
"When I was told they were here to arrest the speaker I was just stunned," said Hardy. "I was shocked. I've never had anything like that happen here before."
EMBEZZLEMENT CHARGES
Hardy says he had no idea about Miles' past, that she and her husband Ken are charged with three counts of embezzlement.
Court documents allege that between February 2008 and October 2010 the Miles were doing business as Barrington Design and Remodel Inc.
The documents outline four instances where the Miles took money and agreed to kitchen remodels and home repair, but never began work, and in most cases did not purchase any materials.
They received over $10,000 from four families and are accused of not making any or complete restitution.
Ken Miles was arrested on a warrant related to the charges in May, but Melody wasn't, leaving her warrant outstanding until Wednesday's arrest.
Hardy says neither his church, nor anyone from his congregation, gave the Miles any money.
"It's something that we absolutely have to protect our congregation and then this state and our area if those charges are indeed true, then we certainly wouldn't want to be funding their what appears to be their ministry," said Hardy.
KTVB made a lot of phone calls but have not been able to confirm whether other churches or people in Idaho gave the Miles or Miles Global Ministries any money.
Officers arrested Miles around noon and booked her into the Canyon County Jail where she can either bond out or await extradition to Oklahoma.
Valley Church in Caldwell isn't the only church the Miles have traveled to to share their message. They've spoken to a church in Boise and to Life Church in Meridian several times. We're not sure if any of those churches or its members gave any money to the Miles or Miles Global Ministries.
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