Ephrata attorney charged with first-degree theft

EPHRATA - An Ephrata attorney is accused of taking more than $5,917 meant for her former law firm.

Prosecutors charged Kathleen C. Kilcullen, 61, with first-degree theft in Grant County Superior Court, according to court records.

She is scheduled to make her first appearance at 1:30 p.m. Monday, according to court records.

The case started when Kilcullen was assigned the case of a Vietnam War veteran, who was appealing the denial of Social Security benefits, according to an Ephrata police report. When the case was reviewed later, it allegedly didn't appear Kilcullen did any work on the case.

Kilcullen was terminated from her position with Calbom and Schwab on Jan. 27, 2010, according to court records. The veteran first elected to stay with Kilcullen, and later decided to return to the law firm after Kilcullen reportedly told him she wouldn't be able to handle his case.

The law firm assigned the case to a different attorney, and notified the Office of Disabilities Adjudication and Review, as well as the Board of Industrial Insurance Appeals of the client's decision, according to the police report. A judge granted the veteran's motion in April 2010, giving him full benefits.

The Social Security Administration allegedly mistakenly paid Kilcullen $5,917 for representing the veteran in August 2010, according to court records. Kilcullen reportedly cashed the check in December 2010.

The Social Security Administration reportedly notified Kilcullen of the mistake in February 2011, according to court records.

G. Joe Schwab reported the alleged theft, along with the perception of Kilcullen seeming not to do any work on the given case, to the Washington State Bar Association in March of 2011.

Schwab reported he believed Kilcullen held onto the money hoping the mistake would be unnoticed, according to court records.

Kilcullen allegedly paid the money in question back to the Social Security Administration in April 2011, which reissued the check to Calbom and Schwab, according to court records.

In a letter to the bar association's Office of Disciplinary Counsel, Kilcullen allegedly admitted to depositing the check after finding it in a drawer. She reported needing the money after being terminated, and she was about to lose her home.

Kilcullen reportedly told police she was blind-sided by the accusations, and did not provide any further details about the incident, according to the police report.

Kilcullen was not available for comment.