By KIM SMITH DEDAM
Staff Writer
February 16, 2008 04:00 am
—
ELIZABETHTOWN -- Former Lake Placid property manager Penny Bruce-Schmidt will serve two to six years in prison for embezzling $170,000 from a homeowners' group.
Essex County Judge Richard Meyers handed down the sentence Friday morning as Bruce-Schmidt stood and trembled in tears.
Bruce-Schmidt was arrested Feb. 26, 2007, after an in-depth investigation, including two wiretaps, caught the Pine Hill property manager telling lies red handed to cover up her theft of funds over five years from the Homeowners Association reserve account.
SEEKS LENIENCY
In the four-hour State Police interrogation that followed her arrest, Bruce-Schmidt confessed to stealing the money, said her attorney, Ronald Briggs.
Briggs argued that the full confession and complete repayment of the stolen money should earn the defendant points for good behavior.
Bruce-Schmidt's husband, Hal Schmidt, used his retirement-account funds to make restitution, Briggs said.
"While the crime is very serious, the impact is negligible because restitution was made immediately after the incident. She's branded in the community as a convicted felon."
Briggs argued for the woman's prior good standing.
"There is nothing to hint this is anything but an aberration," he said. "Due to financial pressure, she made some very bad choices."
Bruce-Schmidt is a stay-at-home mom now, with a 13-year-old daughter and a husband who travels extensively for work.
The couple also have a 19-year-old daughter in college.
"I think the likelihood she will re-offend is nil," Briggs said. "This will be with her for the rest of her life."
LIES
Essex County District Attorney Julie Garcia didn't see the case in the same light.
"Yes, it (the money) has been repaid, but these people will never know how much she took."
Bruce-Schmidt initially lied about stealing, Garcia said, blaming the missing money on a former employee.
"Note: there was never a former employee," Garcia said. "She did not turn herself in. The case was going forward with or without her cooperation. She maintained an almost cavalier attitude and showed no remorse."
In addition, Garcia said, three days after her arrest last February, Bruce-Schmidt went to Albany and filled out an application for a real-estate license.
On question No. 5, Garcia said, which asks if any felony charges are pending against the applicant, "she checked no."
That false statement alone constitutes another felony, Garcia said.
And in April 2002, Garcia said, Bruce-Schmidt was investigated for allegedly adding charges to nightly condo rentals and keeping the money for herself.
In that incident, the Department of State found Bruce-Schmidt "untrustworthy and incompetent," Garcia said, and fined the property manager nearly $15,000, to be paid off in several years time.
Bruce-Schmidt was still paying off that fine while stealing from the Pine Hill Homeowners Association accounts, Garcia said.
"Is she remorseful, judge? I don't think so," Garcia said. "Truthful? When?"
The Pine Hill embezzlement was not a one-time aberration in Bruce-Schmidt's judgment, Garcia said.
"The people I spoke to in the community do not feel the same way, including 60 people at Pine Hill."
Jeff Byrne, president of Pine Hill Phase 1, with 38 members, said in a statement to the court, "We believe Penny Bruce is not sorry for what she did, just sorry she was caught."
RELENTLESS GUILT'
Bruce-Schmidt stood trembling and sobbing as she read a statement aloud to the court.
"All I know is I've had a gnawing feeling of relentless guilt over what I have done," she said, pointing out the shame the crimes have brought to her husband, her children, her parents and her church.
"It has forever destroyed my good name and reputation in my hometown," she said, breaking down. "The worst part is, I did this to myself."
Bruce-Schmidt said she spent the last few years in a constant state of fear, greeting neighbors with a smile while knowing she had taken their hard-earned money.
"All of those people trusted me with their money, and I misused it. I apologize to everybody that I hurt," she said, breaking down.
Bruce-Schmidt asked the judge to consider her status as a full-time mom and asked to serve time on weekends.
IMPACT ON KIDS
"Frankly, ma'am, I don't see anything that would be served by probation," Meyers said, calling the crimes "a systematic, calculated effort to take other peoples' money."
Meyers said the hardest part about imposing a sentence is considering the impact it would have on the children.
"I know that the sentence imposed by the court is going to be harmful and damaging to your children," he said before handing down an indeterminate two-to-six-year sentence each on two felony counts of grand larceny.
The sentences will run concurrently.
Meyers also ordered additional restitution of $80,351.
Briggs indicated some $72,000 of that was already paid back.
HUG FOR HUSBAND
As the court officer walked behind Bruce-Schmidt with handcuffs, he asked her husband, who was sitting in the front row, to move to the back of the room.
Brigg asked if his client could say goodbye to her husband before being taken to the Essex County Jail for processing.
"She can hug him here," Meyers said. "He has to stand behind the gate."
After that, Bruce-Schmidt was taken from the court in tears.
The sentence was fair, Garcia said after the hearing.
"Justice was served. This will be a deterrent for others thinking of committing the same crime."
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