A former Little Rock School District (LRSD) administrator who made six figures a year pleaded guilty to mail fraud on Wednesday after spending more than $230,000 of stolen school funds on personal items - including knitting materials, makeup and various home goods - over the course of eight years.
Karen James, 48, previously worked as LRSD's director of Early Childhood Programs from 2010 until her secret spending caught up with her in 2018.
An investigation revealed she had used two business credit cards she was issued by the district to rack up a combined $230,635.86 in fraudulent purchases, according to a press release.
She spent over $4,000 at the online furniture and home goods site Wayfair on bath rugs, a recliner and other items; made 83 unauthorized purchases through PayPal totaling more than $27,000 and purchased 2,462 items on Amazon, spending a whopping $199,200 on items such as clothing, makeup, housewares, knitting materials, pet products and gift cards, authorities said.
James was reportedly using the credit cards to shop online for personal items from August 2014 until August 2018, when the district detected the unauthorized purchases.
She was given three months of paid leave before her termination, which was appealed, allowing James to resign. The former director was making $108,827 a year, which is more than double the average income in Arkansas, according to the U.S. Census Bureau.
James entered her guilty plea before U.S. District Judge Kristine Baker and will be sentenced at a later date, according to the U.S. Attorney's Office for the Eastern District of Arkansas.
Karen James, 48, pleaded guilty to one count of mail fraud after the Little Rock School District discovered she stole $230,000
Her plea agreement requires her to pay back the money she misused in restitution to the LRSD. She also faces up to 20 years in
