Woman pleads guilty to embezzling from boat victims’ fund

A Cheney business owner convicted of stealing $14,000 from a memorial fund has been ordered to pay the money back.

Katie Rafter, 36, pleaded guilty in court Wednesday to embezzling money from a fund intended to benefit the families of Justin Luhr, 34, Justin Honken, 21, and Caitlin Breeze, 21, who died last year in a boating collision on Lake Coeur d’Alene. She was an account manager in charge with the funds and used the money to buy a business in Cheney.

During her sentencing hearing, Rafter was ordered by Superior Court Judge John Cooney to make monthly payments of $100 until all of the money is returned. She was also credited for jail time served, which amounted to one day behind bars.

Doug Honken, Justin Honken’s father, told the Spokesman-Review in February that he was the first to notice the money was missing – about 90 days after the Luhr and Honken Memorial Benefit at the Kootenai County Fairgrounds on Oct. 8, 2016. About $30,000 total was raised.

Rafter used the money to purchase a tanning salon called Wildflower Boutique and Salon. Samantha Boone, the previous owner, said she repo’d the business from Rafter after learning of the allegations.

Boone has since sold the businesses to another woman.

Rafter could not be reached Thursday for comment.