CHARLESTON, W.Va. -- A longtime organizer of Charleston's annual multicultural festival admitted Friday to stealing more than $300,000 from the event and lying on her federal income tax forms.
Debbie Starks, whose husband Steven Starks started the late-summer Multifest festival in 1989, pleaded guilty Friday to tax evasion by way of an information in U.S. District Court in Charleston. Prosecutors have said Debbie Starks was the event's treasurer.
An information is a court document that generally indicates a defendant is willing to cooperate with the government.
Federal prosecutors said Starks admitted to embezzling $306,872 from Multifest from 2005 to 2010 and failed to report an additional $128,626 in taxable income to the Internal Revenue Service during that time. Her guilty plea centered on one instance in 2008, when she reported that she earned only $13,872.
"I am very, very sorry," Starks said Friday, later adding, "I should have paid taxes on that money."
Starks, of Cross Lanes, wrote and cashed personal checks to herself and to "third parties," mostly to fuel a gambling addiction. She also directly transferred money from the Multifest account into her own accounts and the accounts of family members, according to the plea agreement.
She prepared, signed and filed a joint U.S. individual income tax form from 2005 to 2010, essentially neglecting to report about $500,000 of taxable income. During those years, Starks said she earned amounts ranging from $15,000 to $28,000, the agreement states.
Starks said during Friday's hearing that her husband signed off on the 2008 return but was not present when it was prepared.
The future of Multifest, which draws thousands of people every year and features a bevy of well-known musicians, was unclear as of Friday.
County officials, however, say that the festival and its organizers have lost their support as long as the Starks are at the helm.
"As far as I'm concerned, they're cut off," Kanawha County Commission President Kent Carper said.
Earlier this year, the commissioners agreed to pay Multifest $11,500 after the Convention and Visitor's Bureau slashed its funding for the event. Carper, however, in light of discovering what he called "disturbing information" about Starks, elected to pay the event's vendors directly.
"The community suffers here," Carper said, "[Multifest] served a wonderful purpose. It was a good event to the community. But clearly, they stole hundreds of thousands of dollars of private and public funds, so they're cut off as far as I'm concerned."