Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, September 17, 1994 TAG: 9409200019
SECTION: CURRENT PAGE: NRV-10 EDITION: NEW RIVER VALLEY
SOURCE: By KATHY LOAN STAFF WRITER
DATELINE: CHRISTIANSBURG LENGTH: Short
Kathy Rae Johnston, 38, of McCoy, was indicted in April 1993 on a charge of embezzling more than $15,000 from Allstate Insurance Co.
She had been accused of converting the money to her own use instead of forwarding the premiums to Allstate.
But in Montgomery County Circuit Court on Friday, Commonwealth's Attorney Phil Keith told Judge Ray Grubbs he did not wish to pursue the charge.
Keith said after court that Johnston contends the money turned up missing because of mismanagement. There were difficulties in proving a case against her, Keith said.
Pete Beller, Johnston's attorney, said she had committed no crime and the matter had been resolved civilly with Allstate and the State Corporation Commission's bureau of insurance, which originally made the complaint to Keith.
As part of the settlement with the insurance bureau, Johnston admitted making some mistakes and voluntarily surrendered her insurance agent's license, Beller said.
"She may have committed some errors in judgment but the evidence was questionable about her committing the offense" she was charged with, Beller said.
"It appeared that substantial justice had been accomplished due to her losing her license," Keith said.
Beller said Johnston plans to apply to get her license back.
by CNB