Was dream home a steal?

It's not hard to unravel the mystery of what Stacy Funk did with at least some of the estimated $225,000 she embezzled from Champions Run golf club.

Just take a look at the advertisement for the house that's for sale in rural Council Bluffs.

In 2007, Funk, the former chief financial officer at the west Omaha golf club, and her husband, Bryan Funk, an Iowa state trooper, built their dream home, a 5,000-square-foot custom house in eastern Pottawattamie County.

The tan house with red shutters sits prominently atop three acres of land near 225th Street and Hunt Avenue.

The Web site advertising it for sale for $554,000 calls it a “spectacular 5 bedroom, 5 bath home” that “features granite counters, inside and outside fireplaces, a wet bar with granite ... a three-car garage plus a 30- by 40-foot hobby building and tons more.” The house also boasts a finished basement, a stone outdoor fireplace, a whirlpool tub and an eat-in kitchen with custom cabinets and a double oven.

The Funks are trying to unload the lavish house and their 21-foot-long boat as they try to make restitution to the country club.

Douglas County District Judge J. Patrick Mullen on Wednesday sentenced Stacy Funk, 35, to 180 days in jail and five years of probation for the theft. The judge also ordered her to pay $126,000 in restitution — Mullen determined that to be as much money as she could conceivably repay over the next five years.

Mullen said he was mindful of the depth of the theft and the impact it had on those who had trusted Funk. (Prosecutors say that Funk, an accountant, handled her family's finances and that there was no evidence that Bryan Funk knew anything about his wife's scheme.)

A probation officer preparing a pre-sentence report had recommended probation for Stacy Funk, noting that she has no record and has three young children. Prosecutor Jim Masteller objected to probation — saying the two- to three-year-long theft was sophisticated and extensive and needed to be punished with prison.

Funk had faced up to 20 years in prison. However, the judge said he was focused on ensuring that Funk makes every effort at restitution. Those who go to prison typically cannot pay restitution because they are unable to earn an income.

“Of course people are hurt because of your actions,” Mullen told Funk. “It was a ruse that took some knowledge and was a bit complicated.”

Bob Horgan, managing partner of Champions Run, said he was pleased with the sentence and was “more concerned with restitution.”

“It was a terrible mistake that she made,” Horgan said. “We feel sorry for Stacy and her family. ... At the same time, we're going to operate under the philosophy that she's going to pay back what the judge ordered.”

The judge spent a good portion of Wednesday's hearing quizzing Funk on how she planned to pay the money back.

Funk said she arrived Wednesday ready to turn over $20,000.

Mullen ordered Funk to pay back $300 a month over the next five years — on top of turning over any profits from the sale of the house and boat.

Funk said she and her husband tried, to no avail, to sell the boat this past summer and will try again when the weather warms up.

After three showings of the house this month, she said, she is hopeful for a buyer.

The judge called it imperative that the Funks sell the home and turn over the proceeds. Stacy Funk has testified that the Funks have a huge mortgage and little equity in the house.

Horgan and prosecutors say most of the money that Stacy Funk embezzled appears to have gone to the high-end furnishings in the house. For example, Horgan said, officials know that Funk once spent $15,000 at the Nebraska Furniture Mart.

“From what I understand, it is a very, very beautiful home,” Horgan said. “I do think the building of this new home was part of why the money was embezzled.”

Funk concealed her theft from Champions' officials in “a dozen” different ways, said Masteller, the prosecutor.

As CFO, Funk was entrusted to take the proceeds from cash bars at club events and deposit that money. At the time, Horgan said, no one attempted to reconcile the amount collected at events with the money deposited in the club's bank accounts.

She also deposited checks into her personal accounts — and falsified receipts to make it look as if the checks were written to vendors.

Horgan said club officials now understand the importance of having two employees handle those affairs — one who writes the checks and another who balances the checkbook.

An insurance policy covered about $125,000 of the theft, Horgan said.

“We relied too heavily on good faith and trust,” he said. “We feel confident that our new safeguards will go a long ways in protecting us.”

Funk told the judge that she is in therapy to try to figure out why she stole.

“I would like to take this opportunity to apologize to Champions Run, as well as my family and friends, for the heartache I caused,” she said.

“I will, to the best of my ability, pay back this debt.”

Contact the writer:

444-1275, todd.cooper@owh.com

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