By Jesse Campbell

Staff Reporter

Former Jefferson attorney Michelle Shepherd pled guilty to multiple felony embezzlement and obtaining property by false pretense charges Monday in a superior court session at the Ashe County Courthouse.

Altogether, Shepherd will serve between 15 and 20 years in prison.

Shepherd pled guilty to 16 Class C felony embezzlement charges, 10 Class C felony charges of obtaining property by false pretense and one Class H felony charge of obtaining property by false pretenses.

Shepherd faced a maximum sentence of 261 months in prison for each Class C felony charge and 30 months for the Class H charge. Altogether, the maximum prison term for Shepherd could have been 6,816 months in prison.

Over an eight-year period of time, Shepherd’s fraudulent behavior affected 275 parties totaling in excess of $5.5 million. According to investigator Wade Colvard from the State Bureau of Investigation, it was the largest confirmed theft by an attorney in the state’s history. Colvard learned this after speaking with an official from the N.C. Bar Association.

Robert Washburn, President of Ashe Federal Bank, explained during court Monday that due to Shepherd’s practice of check kiting, the bank had incurred losses of $1.9 million. Only $500,000 of these funds will be covered by insurance.

As a result of her actions, the N.C. Bar will cover $275,000 of her clients’ losses. An additional $300,000 will also be forthcoming by the Bar. Attorney fees statewide are likely to rise to cover these claims. Numerous civil actions against Shepherd are also pending.

During a May 8, 2008 interview between Shepherd and investigators, the attorney elaborated on how she knowingly embezzled funds from clients. Colvard explained that during the interview Shepherd admitted to borrowing funds from clients for personal use and stated that she explained she had ‘always intended to pay off’ the balances. Shepherd told Colvard that every time she tried to correct the situation the matter would only grow worse. Colvard told the court that during that same interview Shepherd informed investigators that she would spend 30 to 45 minutes a day ‘keeping up with money floating fraudulently.’

An investigation by authorities revealed that Shepherd used the embezzled funds to purchase 47 acres of property on Deep Ford Road. Some of the funds were also used for the construction of a spec house in Westwood Ventures. A photographic investigation by authorities revealed that Shepherd made numerous purchases during the time that she embezzled said funds. Colvard told the court that authorities discovered that the Shepherd’s had purchased a hybrid Lexus sport utility vehicle, various restored vehicles including a Firebird and a Camaro. Shepherd also purchased two tractor-trailers believed to have been used for the purpose of drag racing, and a camper that was later traded in for a motor coach, Colvard said. Colvard stated that investigators noticed that her home was well furbished as well.

After witness testimony and statements from previous clients, Shepherd was sentenced on a consolidated charge. The three Class C felony charges were consolidated to 60 to 81 months in prison for each count. Altogether, Shepherd will serve between 15 and 20 years in prison.

Prior to sentencing, District Attorney Tom Horner provided some closing comments.

“The punishment can’t be great enough, she deserves every day the court gives her,” Horner said. “She has made her bed and now she must lie in it.”

Shepherd agreed with Horner’s remarks.

“I am glad that I was caught, the whole matter was eating at my soul. Everything I tried to do to make things better only got worse and kept snowballing,” she said while sobbing.

“I want everyone to know I will work to my dying day to make this right,” Shepherd said.

“I just wanted the best for my family.”

Shepherd’s attorney Dudley Witt contended that Shepherd was very open in her actions and that she had tried to do the right thing.

“Michelle was a self-made individual who worked hard all of her life,” Witt said. “Greed just took a hold of her.”