Donna Eckert, of California, charged in $3.5M theft from Hempstead school district

A California woman has pleaded not guilty to grand larceny charges after authorities said she stole $3.5 million in Hempstead school district funds that were fraudulently deposited in a bank account that she owned.

Donna Eckert, 66, of Escondido, was arraigned Thursday before Judge Terence Murphy on charges of first- and second-degree grand larceny. Her bail was set at $25,000 cash, $50,000 bond and $150,000 partially secured bond, according to a release from the Nassau County District Attorney's Office.

"This defendant made no attempts to return the millions of dollars that were wrongfully transferred into an account she controlled," District Attorney Anne T. Donnelly said in the release. "Instead, she made multiple cash withdrawals for her own personal use, siphoning away educational resources meant for our students."

Eckert's attorney, James Polk, told Newsday that his client, a widow who cares for a special-needs daughter, has no prior criminal record. "I'm still reviewing the evidence and we look forward to a resolution that is just and favorable to Ms. Eckert and Nassau County," he said.

Authorities said that the IT department at an unnamed local charter school found the school finance director's email had been compromised and a "forged email," mimicking the official’s address, had been sent to the Hempstead school district on Jan. 29, 2024, requesting electronic funds be sent to a new bank account.

Hempstead school officials then transferred about $3.5 million to the account, identified as "DME Unlimited," on Jan. 31, 2024, according to the release from the district attorney's office.

An investigation later determined that the business account belonged to Eckert, the release said.

On Feb. 2, 2024, surveillance video captured Eckert allegedly retrieving cash from a bank teller in Escondido, California, according to authorities. Investigators said bank records showed $25,000 was withdrawn from the DME Unlimited account. That same day, $25,000 was deposited into her personal bank account, authorities said.

Three days later, Eckert was again caught on video at the Escondido bank. Bank records indicated she withdrew $313,000 from the DME Unlimited account. She later deposited $313,000 into her personal account, authorities said.

Eckert allegedly withdrew a total of $338,000, authorities said. 

A Hempstead district spokesman said Friday that approximately $3.3 million of the funds were recovered. In a statement provided to Newsday the district said it hopes to recover the remaining money.

Eckert was arrested by the Escondido Police Department on March 10 and extradited to New York on April 1 by members of the Nassau County Police Department Fugitive Squad, authorities said. She is expected back in court on April 21 and faces up to 25 years in prison if convicted.

"This case highlights how easily a compromised email account can go undetected," Donnelly said in a statement. "The best defense to protect yourself and your business is by confirming any change in payment information via a direct phone call to a known, trusted contact."

Newsday's Janon Fisher contributed to this article.