Arraignment in embezzle case

About 10 frustrated homeowners said they would attend this morning's arraignment of Linda Balch, accused of embezzling more than $100,000 from the Woodbridge Townhomes Homeowners Association in Nevada City, an alleged victim said Tuesday.

"We're upset about this," said Woodbridge resident Damon Tunnicliff, 86. "(Balch) should be in jail."

Balch, the wife of former Nevada City Mayor Tom Balch, was the association's treasurer for two years.

Balch allegedly used her position to embezzle more than $100,000 between September 2005 and Sept. 30 of this year, and used the funds for personal gain, Grass Valley police Sgt. Doug Hren said.

Hren and Deputy District Attorney Jim Phillips would not reveal the specific amount embezzled, although Phillips said the amount is between $100,000 and $150,000.

"I feel very sorry for someone compelled to do something like that, and I have no idea why she would do it," said Woodbridge Townhomes resident Pat Barrentine, 77. "It's been difficult for all of us. Hopefully, there will be restitution."

Grass Valley police arrested Balch Oct. 25. Her bail was set at $100,000, and she posted a $10,000 bond the same day of her arrest, according to court records.

Phillips charged Balch with three counts of felony embezzlement and one count of theft from an elder.

In Phillips' complaint against her, six elderly people are listed as victims under the theft charge, including Tunnicliff and Barrentine.

Secretary of the association board, Ulrich Kaestner, 73, also is listed on the complaint. He said residents feel betrayed by Balch's alleged theft.

"This is a two-pronged thing," Kaestner said. "The first is that we lost all the money, about $138,000 with attorney fees and accounting fees, then you have the human side. She had our trust. She was a trusted neighbor and treasurer."

Association board members discovered the alleged embezzlement through an audit, association president Bill Hegarty said. They contacted their bank, Citizens Bank in Grass Valley, and bank staff notified police after a review of account records, he said.

Homeowners - many of whom are elderly and on a fixed income - pay $360 every month in association dues. The money goes toward maintenance of the grounds, Tunnicliff said.

The association's reserve funds are completely depleted because of the alleged embezzlement, he said.

"What if there were a major catastrophe here?" Tunnicliff said. "We would have to use the reserve funds, which are gone."

Kaestner said Balch announced at a recent homeowners association meeting that she would do "everything in her power" to pay homeowners back.

"She was not quite remorseful," Kaestner said, adding that he had "no idea" whether the former treasurer can follow through on her promises. He said about 10 homeowners planned to attend Balch's arraignment, scheduled for 8:30 a.m. today in Nevada County Superior Court.