(Michigan City, IN) - A La Porte woman will spend just a limited amount of time in jail as long as she pays back the over $90,000 she stole from an American Legion Post as their financial officer.

 

 

Natalee Stewart, 42, was sentenced Thursday to 78 days in the La Porte County Jail for Level 6 felony theft.  The remainder of her 832 day sentence will be served on probation as long as she pays the balance of her close to $62,000 debt.

 

The sentence handed down in La Porte Superior Court 1 followed the terms of a plea agreement.  As required by the guilty plea, Stewart paid $32,000 prior to being sentenced and was ordered to make payments of $1,500 a month until the balance is retired.  Failure to meet her financial commitments will mean spending the rest of her time on probation with the Indiana Department of Correction.

 

La Porte County Prosecutor Sean Fagan said the sentence negotiated with the defense reflected the desires of her victim.

 

“This is what they wanted.  We agreed.  So, everyone wins,” he said.

 

Authorities said Stewart was a volunteer financial officer for the American Legion Skwiat Post #451 in Michigan City with access to accounts that included payroll.  She also performed bookkeeping and handled the finances of the organization.

 

For about a six-month period in 2024, authorities said she made over $90,000 in withdrawals from two separate accounts.  When questioned, Stewart allegedly told police she used the money to gamble, pay bills and for other expenses and intended to sell her home for money to pay back the funds.

 

Her arrest stemmed from a nearly one month investigation that started when American Legion Commander Michael Livengood contacted Michigan City Police in December about fraudulent activity on multiple accounts belonging to the veterans’ organization, according to the charging information filed with the court. 

 

Police said Livengood implicated Stewart since she was the only authorized user of the accounts and produced more than 40 receipts from her withdrawals at Blue Chip Casino totaling more than $50,000 from April to November.

 

Stewart was elected the financial officer just several weeks before she began making the illegal withdrawals, police said.

 

Fagan said his office as it does in any criminal case asked the American Legion leadership how it wanted the case resolved and what mattered most to them was total reimbursement.

 

“To make the victims whole is to get the money back. If not, there are going to be consequences,” he said.