An Indianapolis attorney and accountant has been charged with theft and forgery after an investigation revealed the attorney had misappropriated nearly $600,000 in funds from a guardianship account and a family trust account.
The Marion County Prosecutor’s Office says Stacy H. Sheedy, 51, made questionable withdrawals on the estate of an elderly woman who is in a nursing home diagnosed with Alzheimer’s disease. Sheedy was appointed guardian of the woman’s estate in May 2010 and received funds from another guardian in December 2010. Sheedy allegedly did not deposit all of the money into the proper accounts and there were multiple questionable withdrawals. She was removed as guardian in April 2011 and ordered to repay $120,000.
During the course of the investigation into Sheedy’s conduct in the guardianship case, investigators discovered other suspicious transactions stemming from Sheedy’s role as trustee of a family trust. In November 2007, Sheedy became the trustee of a family trust valued at nearly $500,000; the trust now has a present value of $168. When family members questioned why they were no longer receiving brokerage statements from the account, Sheedy told them she had invested the funds in a bond fund. She provided them with statements from the “Wealth Council Indiana Small Cap Bond” fund, which does not exist.
Investigators found almost $597,000 in total withdrawals and unaccounted funds from the guardianship and trust.
Sheedy faces three counts of theft, two as Class C felonies and one as a Class D felony, as well as one count of Class C felony forgery.
“Stacy Sheedy failed not just her profession, she also failed the people for whom she had a fiduciary and ethical obligation to protect,” said Marion County Prosecutor Terry Curry. “This type of theft is unconscionable, and we simply will not tolerate it. We look forward to vigorously prosecuting this case to its conclusion.”
Sheedy was admitted to practice in Indiana in 1996, according to the Indiana Roll of Attorneys. She was suspended from the practice of law in June 2011 for failing to cooperate with the Disciplinary Commission’s investigation of a grievance filed against her. The Indiana Supreme Court reinstated her on July 26.