With some Oakdale and surrounding area residents in attendance, former longtime local businesswoman Lana Casey, 63, pleaded “no contest” to a series of felony counts in Stanislaus County Superior Court on Monday, May 19.
The one-time owner of Lana’s Spur of the Moment shop in Oakdale, a Hughson resident, Casey was indicted last year on 79 counts of grand theft, money laundering and tax evasion, in what District Attorney Jeff Laugero described as a $1.4 million embezzlement scheme.
Casey was escorted in to the small courtroom on Monday afternoon, May 19 and, as Judge Valli Israels read through each count that she was charged with, she kept her gaze straight ahead, not looking back toward those seated in the courtroom.
The grand jury last year was presented evidence over three days by the District Attorney’s Office before returning the indictment and shortly after the indictment, investigators with the Stanislaus County District Attorney’s Office arrested Casey.
According to the indictment, Casey fraudulently obtained over $200,000 from non-profit organizations serving the Oak Valley District Hospital in Oakdale; by drafting herself and others checks from accounts belonging to the non-profit organizations. She is also alleged to have written checks to a mortgage company as well as a company that sold pool fencing. The indictment also indicated she took money from trusts associated with Carolyn W. Reynolds.
“A thorough forensic audit by the California Franchise Tax Board determined that Casey has $1.453 million in unreported income between 2018 and 2021 and determined that approximately $1.211 million of that income was embezzled,” the indictment stated.
It is also alleged that Casey illegally laundered the money by conducting transactions through financial institutions and felony tax evasion. Under state and federal law, “individuals must pay money on earnings whether lawfully or unlawfully obtained.”
Facing those charges in court, having to answer to multiple counts including grand theft, money laundering, tax evasion and aggravated white collar crime enhancement, Casey pleaded no contest to all counts while admitting to each of the white-collar crime enhancement charges. Pleading no contest allows the defendant to neither admit or deny guilt, but accept the consequences as if they were convicted and found guilty of all charges.
Judge Israels accepted her pleas and found Casey guilty of the crimes. She is set to receive a total of 124 months, which equates to 10 years and 4 months in state prison. The formal sentencing hearing is scheduled for 8:30 a.m. on June 13 at Stanislaus County Superior Court. In addition to the sentence for crimes committed in Stanislaus County, Casey will also receive two additional years for crimes committed in San Joaquin County.
For some of those in the courtroom, the sentences do not seem long enough. Some also offered impact statements regarding the case.
“What a profound impact Lana has had on my life and many others in my community. The betrayal was and still is overwhelming,” Saundra West told the court, then turned her attention to the defendant. “I thought you were my friend but I later discovered that you were using me like you had used so many others. I had to go over every check you ever wrote. It wasn’t just the theft of money; it was the theft of trust and friendship and good intentions towards the community.”
For Travis Colby, Deputy District Attorney, this case was meaningful for many reasons.
“Cases like this are daunting but it’s worth it to prosecute them. As of right now, this is the largest criminal indictment of white-collar crime in Stanislaus County,” said Colby as he addressed the group of Oakdale community members that were present Monday afternoon at the courthouse.
With more than $1.4 million of unreported income and more than $200,000 embezzled from local non-profits, Casey’s crimes affected many in the community, with the ripple effect impacting even more.
The case was investigated by the Stanislaus County District Attorney’s Bureau of Investigation, the Oakdale Police Department, the California Franchise Tax Board, and the San Joaquin County District Attorney’s Bureau of Investigation.
Casey was originally booked in connection with the case on Sept. 26, 2024; she remains jailed without bail.
Times Editor Marg Jackson contributed to this report.
