A Waynesboro woman, who pleaded guilty to embezzling more than $400,000 from Stuarts Draft Retirement Community and Christian Homes, was sentenced to three years in prison on Tuesday.

Kathleen Marshall, 64, was arrested June 3 following her indictment by an Augusta County grand jury on seven counts of embezzlement from her former employer.

Marshall, who had been free on bond, appeared in Augusta County Circuit Court before Judge Paul Dryer. As part of a plea agreement, she received a 10-year prison sentence with seven years suspended. She also is to spend five years on supervised probation upon her release.

In Virginia, an embezzlement conviction can carry a maximum 20-year prison sentence. Assistant Commonwealth’s Attorney Kyle Powers, who prosecuted the case, said the plea agreement fell within the state’s sentencing guidelines in the case.

As part of the sentence, Marshall also will be required to make monthly payments as restitution for the money she embezzled. Powers said two months following her release from prison, she must make monthly payments of $1,400 until restitution is paid in full.

Investigators say Marshall, a bookkeeper and 14-year employee of Stuarts Draft Retirement Community, had stolen a total of $465,000 over a seven-year period, starting in January 2012. She was accused of embezzling the money for personal gain.

Previously, Lt. Aaron LeVeck of the Augusta County Sheriff’s Office said investigators were contacted by Stuarts Draft Retirement Community’s owners at the end of January about suspicions that Marshall had been embezzling from the company.

Powers said an audit of the company’s books confirmed that the embezzlement had taken place. During the course of the investigation, Marshall admitted to the crime, he said.

Stuarts Draft Retirement Community offers independent and assisted-living units and apartments in a complex off Patton Farm Road.

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