Embezzler gets the slammer

A 61-year-old Nevada City woman who embezzled more than $100,000 from her homeowner's association received a six-month jail sentence Tuesday and was led away in handcuffs as 33 of her elderly victims watched.

In addition to serving time at Wayne Brown Correctional Facility in Nevada City, Linda Balch will have to pay at least $90,000 restitution, with a larger amount to be determined at a restitution hearing June 3, Nevada County Superior Court Judge Candace Heidelberger ruled.

"The victims in this case were vulnerable because of their advanced ages," Heidelberger said, as she handed down the sentence, which includes five years of supervised probation and the requirement to inform all future employers of her felony conviction. "Their stress, anxiety and degree of loss was substantial. Many of (the victims) are on a fixed income."

Attorneys in the case still need to agree on a total amount to be repaid, Nevada County District Attorney Cliff Newell said. The homeowner's association is owed $129,263, which will most likely be the ultimate restitution amount after another $40,000 in bounced checks is reviewed by defense attorney Thomas Leupp, he added.

As treasurer of the Woodbridge Townhomes Homeowner's Association, Balch embezzled the money during a period of two years from 2005-2007.

Thirty-three of Balch's victims rode to the courthouse for Tuesday's sentencing in a school bus driven by homeowners association President Bill Hegarty.

Before Balch was sentenced, five members of the homeowners association stood at a podium and delivered victim impact statements.

"We were very, very deeply hurt," said Otto Hauiesen. "(Balch) has shown no feeling of sorrow or contrition."

"(Balch) told me she did it to keep up her lifestyle," association secretary Uli Kaestner said. "She said it was so easy to take the money. She was trusted for two and a half years, and she willfully and skillfully hid her misdeeds. I want complete restitution."

"This was no different than a person stealing from 36 households every month for two and a half years," said Woodbridge Townhomes resident Barbie Jackson. "This was so incredibly deceptive."

"This was a premeditated operation from the beginning," Hegarty said. "(Balch) started stealing the first month. I don't see how anybody could do that to people."

Balch sobbed into a tissue as she stood in front of her victims and apologized.

"I can't express how sorry I am," Balch said. "I never thought it would come to this. I never meant to hurt you. I will do everything in my power to pay you back. I'm so sorry."

Balch's attorney Thomas Leupp placed his hand on Balch's back to comfort her and guide her back to her seat.

Balch's husband, former Nevada City mayor Tom Balch, was not present in court Tuesday.

The couple's home on Searls Avenue has been put up for sale for $389,000 and is in escrow. Balch has since moved to Alta Sierra, Kaestner said.

Balch still owes about $310,000 on her mortgage, Hegarty said, so her victims won't see much of the proceeds from the home sale, he said.

But Balch's bail bond she paid after her initial arrest last October was exonerated by the judge in court Tuesday, freeing up $10,000 for restitution.

After Balch has spent 90 days in jail, she will be eligible to apply for work release and electronic home monitoring.

The decision will depend on whether Balch has already paid a "substantial amount" toward her restitution, Newell said.

Newell said he will determine what a "substantial amount" is at the time of her request. If she has paid an adequate amount toward her restitution, he said, he will not argue for her to remain in jail.

Though Balch's victims deserve to see her go to jail, Newell said, she will pay restitution faster if she is able to work, he said.

After a tearful Balch was handcuffed behind her back and led out of the courtroom to jail Tuesday morning, Kaestner thanked Newell and the Nevada County Victim-Witness Assistance staff for their help.

"This has been a trying time," Kaestner said. "Thank you and all of these good people who have been so helpful."

"This is sort of a hollow feeling of victory," Newell said. "We still haven't seen the money."



To contact Staff Writer Robyn Moormeister, e-mail rmoormeister@theunion.com or call 477-4236.