Former Harbor House director sentenced to probation, jail for stealing from ministry

SUPERIOR — The former executive director of Harbor House Crisis Shelters was sentenced Friday in Douglas County Circuit Court for stealing more than $100,000 from the ministry.

Chelsea Anne Branley, 34, of Superior, pleaded guilty to felony counts of theft-business setting and fraudulent writings by a corporation officer. A felony count of identity theft was dismissed but read in for sentencing.

Branley was sentenced to three years of probation and 60 days in jail with Huber release for work. Under the conditions of her probation, Branley was ordered to pay $121,106 restitution and to have no contact with Harbor House properties, Executive Director Krystal Brandstatter or Faith United Methodist Church.

Branley served as executive director of the nonprofit from July 2019 until November 2022 when she resigned. Financial discrepancies were discovered at Harbor House following her resignation and were investigated by Superior Police Detective Sean Holmgren , according to the criminal complaint. He found that Branley used the organization's credit card to pay for personal items, including an electric scooter, clothing, computer accessories and jewelry, as well as hotel stays. She was accused of not issuing receipts when cash was paid to her for rent and utilities, as well.

"Chelsea was stealing from Harbor House and the homeless. She was taking advantage of people who were already hurting," Brandstatter said in her victim impact statement.

The former director's actions left the ministry rebuilding its reputation in the community as well as its finances.

"I was so scared we wouldn't be respected anymore or trusted, that funding would be cut," Brandstatter said. "We are the only family shelter in Douglas County and so needed here."

Judge Kelly Thimm accepted a joint recommendation from both parties at sentencing after asking for an explanation of the jail term in light of the high amount of restitution involved. Restitution was calculated by a forensic accounting firm hired by Harbor House's insurance company, according to District Attorney Mark Fruehauf, and dates back to 2019. Because the case involved reconstructing financial records from several years ago, there were some concerns about proving some of the sums beyond a reasonable doubt during a trial, he said.

"(Branley's) acceptance of responsibility and stipulating to that amount of restitution, even though some of those sums might be challenging to prove, was a large factor in the agreement," Fruehauf said.

Another factor in the jail sentence length was Branley's ability to work and begin to pay back that restitution.

Harbor House Crisis Shelters , a ministry of Faith United Methodist church, provides shelter, and transitional and permanent supportive housing services for homeless women and families. The nonprofit serves roughly 300 single women and families annually. In October, the ministry cut the ribbon on a new shelter building at 1112-116 Oakes Ave. that will more than double the capacity of their former site in Superior's South End.

"Harbor House Crisis Shelters wants to thank the community for their continued support of shelter services throughout this case," Brandstatter said following the hearing. "While we are very disappointed in the actions of Chelsea Branley, today justice prevailed. Today we are able to close this chapter and put it behind us."

The ministry has continued to serve the most vulnerable citizens, and will continue to provide needed services to the homeless community.

"Fortunately, Harbor House Crisis Shelters has worked hard this past year to get back on track. We are proud that this case has not kept us down, but instead made each of us so much stronger," Brandstatter said. "We've used an awful situation to come together as a team, to work harder to help those most in need. Thank you all for your support, prayers and donations to keep Harbor House going through this turmoil. We are very blessed to have such an amazing community of supporters."