The State Bar of Texas' former membership director has pleaded guilty to felony theft for misappropriating funds.
Kathleen M. "Kathy" Holder, 52, of Austin, was sentenced to "shock probation." Holder, who also served as a deputy clerk of the Supreme Court of Texas, will spend 180 days in state prison and be on probation for ten years.
Holder took money from an account used to reimburse attorneys who overpaid their annual dues, according to published accounts. She was ordered to pay $73,949 in restitution. The State bar also got a $482,029 reimbursement from its insurance carrier and has been "fully compensated for the loss," according to a statement released on Tuesday.
The thefts occurred from May 2003 through April 2012. State Bar officials discovered the thefts in April 2012 and notified the Travis County District Attorney's Office. Holder was immediately terminated.
After that, the State Bar and the Supreme Court hired an internal auditor and created "new processes and controls" after discovering the thefts, the state bar reported.