Defrauded couple could lose house, get no apology

The pair supported convicted Karen Kiehl who is asking a judge for a reduced sentence.

By ANDREW MEACHAM
Published July 1, 2007

Ruby Swails (right) remained a staunch supporter of Karen Kiehl accompanying Kiehl to her June 1 sentencing and other court appearances.
	[Times photo: Carrie Pratt]

Karen Kiehl sat in a chair at the Orient Road Jail and cried.

What, she wanted to know, was she doing here? Why did she get five years in prison?

On the other side of the glass, Ruby Swails waited for an apology.

Two weeks before the jailhouse meeting, Swails, 74, had entered a courtroom by Kiehl's side, where the 50-year-old Valrico woman was being sentenced for fraud.

Few of Kiehl's 120 victims suffered more than Swails, who quit her job because she believed Kiehl's promises. Swails may soon lose her home.

But the apology never came.

Instead, Kiehl lamented her incarceration and dictated a to-do list of favors.

"I felt betrayed," Swails said. "The least she could have done was to say, 'I'm sorry things worked out the way they did.' "

- - -

Kiehl returns to court on Monday to ask a judge to reduce the prison sentence he imposed on June 1 from five years to one year. The move could be part of the groundwork for an appeal, said assistant state attorney Mark Campbell, who put Kiehl's chances of getting a shorter sentence at "slim to none."

In any case, the damage has been done to scores of people who gave Kiehl, by her own estimation, more than $180,000 in two years. At her sentencing, victims told similar stories about paying Kiehl to get government grants that never materialized.

The grants, ranging from $200,000 to well over $1-million, were going to help Kiehl's clients start businesses, pay medical bills, buy homes or get out of debt.

When the money didn't come, Kiehl gave clients excuses and told them to trust in God.

- - -

It's always Christmas at the Riverview home of Ruby and Loyd Swails. A tree stays decorated year-round in the living room, surrounded by dozens of dolls and stuffed animals.

Ruby and Loyd got married in the North Street house 32 years ago. From the ceramic Dalmatian at the front door to the illuminated flamingo and gurgling fountain in the back yard, the home exudes comfort and self-expression.

It was also a second home for Kiehl and her two adopted sons, ages 5 and 7, who called Ruby and Loyd "Grandma" and "Grandpa."

A few weeks after paying Kiehl $1,500 to write a grant application, Ruby stopped working at Cracker Barrel and Loyd, 72, quit his job servicing recreational vehicles.

They waited for the $250,000 check to arrive like Kiehl had promised.

No check came. Kiehl urged the Swailses to refinance their home for $45,000 to pay the bills until their grant arrived. They agreed, and promptly loaned Kiehl $28,000.

"It was like, she kept pushing us," Ruby Swails said. "She said if we would help her out and give her part of the money, we would never have to make another payment."

When the Swailses defaulted on their mortgage, Kiehl wrote a $45,000 check in February to Yale Mortgage Corp.

It bounced. Kiehl, who represented herself as the Swailses' daughter, promised to deliver the money but never showed up, said Sid Werner, an attorney for Yale Mortgage. The company is waiting to see if the Swailses can come up with financing to cover the loan balance on their house, which has climbed to more than $160,000.

If not, they will lose it.

- - -

On June 12, a letter arrived from the Orient Road Jail.

"Dear Ruby," Kiehl wrote in a neat cursive on yellow notebook paper. "As days come and go, I have had many hours to spend crying and crying out to God. Telling him I do not understand."

"God knows," the letter reads, "I would never intentionally hurt anyone."

Andrew Meacham can be reached at 661-2431 or ameacham@sptimes.com.

[Last modified June 30, 2007, 22:41:59]