Judge delays decision on charge in payroll theft case

A Bourbon County judge said she needs to review case law before deciding whether to bind over a Fort Scott woman on allegations of payroll theft.

Sixth Judicial Magistrate Judge Rebecca Stephan will decide whether enough probable cause exists to send the case against Denise Kase to jury trial.

Kase is accused of using her employer's payroll checking account to write 10 checks to her step-son and her son for work that authorities say they didn't do. The checks were then deposited in her checking account, according to court testimony at Tuesday's preliminary hearing. Another check Kase is accused of having written was made to a Fort Scott man who remodeled her house prior to the 10 other checks.

The payroll theft totaled $4,059, according to Fort Scott Police documents.

Authorities accuse Kase, 45, of having committed the crimes in the summer of 2005 while she was general manager of the Fort Scott Inn, 101 State St.

The motel at that time was owned by the Eastern Shawnee Tribe of Oklahoma. The tribe has since sold the motel.

Bourbon County Attorney Terri Johnson charged Kase with 11 counts of felony making false information.

Kase's attorney, Charles Gentry, said if charges are to be filed, they shouldn't be for making false information but rather theft by deception, which is a slightly less severe felony.

Stephan will have to decide whether Kase should be bound over on the false information charges or the theft charges or not to bind her over on any charges.

The defense contends Kase would have had to use her own name in order for it to be considered making false information. Rather, she used her sons' names, the defense said, if the crime even occurred. The county attorney said that Kase signed the checks, which constitutes false information.

"That's the legal argument the judge is going to have to decide the answer to," Johnson said.

Stephan will review the case of State v. Story L. Gotti that Gentry cited. In that case, the Kansas Supreme Court said the charge of making false information requires that the writing be done in the writer's own name. Forgery is writing that professes "to be that of another," according to its ruling.

The Eastern Shawnee Tribal Police, which serves as the tribe's law enforcement department, began investigating Kase in September 2005. Charles Enyart, the tribe's police chief, asked his investigator, Frank Miller, to look into possible payroll fraud at the hotel, Miller testified.

Miller obtained copies of checks from an accounting firm the business used. Soon after, he contacted Kase and showed her a list that showed the check numbers, amounts, and dates.

Five checks were made out to Chris Kase, her step-son, and five to Jonathan Howard, her biological son, Miller said. All were dated from June to August 2005.

During his court testimony, Miller said he interviewed Kase at the motel. She seemed nervous and cried during the discussion, he said.

Miller said he asked her to fill out a narrative statement. Kase wrote that she takes "full responsibility" for what she did by writing the checks for work that wasn't done, according to Miller, who read a portion of the statement in court.

The tribe fired Kase four days after the interview, Miller said.

Gentry objected to the admissibility of the written statement, saying it should be thrown out on grounds of heresy and lack of foundation.

Stephan allowed the statement into evidence.

Gentry asked Miller about a part of the statement in which Kase said she recorded time the two men worked but didn't clock in on a time clock.

Gentry asked if they could have worked without clocking in.

Miller said he talked to a maintenance worker at the motel, who told him the two men never worked for him around the place. He also said he never confirmed if the two men worked at the motel.

Gentry asked if they could have worked in the restaurant portion of the motel without being timed in.

Miller said he was unable to confirm if the two family members worked at the restaurant.

Gentry also questioned if Miller had advised Kase whether she was free to leave the interview and not discuss the case with him. Gentry asked if she was advised of her rights or that any statements could be used against her in court.

Miller said no to all of those questions. The investigator said he told her that he wanted to get her side of the story.

Former tribal chief Charles Enyart testified, saying Kase told him she was "very remorseful and apologetic" and felt that she had failed him because of the work the two boys didn't do.