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Marshalltown woman accused of embezzlement from teachers union

Nelson-Loupee

On Monday, a Marshalltown woman turned herself in for allegedly embezzling more than $10,000 from the Marshalltown Education Association between July 2017 and September 2024.

Rachel Nelson-Loupee, 48, has been charged with first-degree theft, a class C felony. She turned herself in at the Marshall County Courthouse after the Marshalltown Police Department issued an arrest warrant.

According to the criminal report, Nelson-Loupee admitted to the act and agreed to turn herself in by 5 p.m. on Thursday, but failed to do so, resulting in the warrant.

The MPD began an investigation into the alleged embezzlement on Dec. 3, 2024. After financial audits were obtained and a four-month long investigation was conducted, the charges were filed against Nelson-Loupee, a business teacher at Marshalltown High School. As of Monday, she remains employed with the school district but has been placed on administrative leave.

A Class C felony carries a maximum sentence of 10 years in prison and a $13,660 fine. A preliminary hearing is scheduled for May 9.

On Monday, Nelson-Loupee issued a statement that she was charged with the theft due to misappropriation of MEA funds, and she reported herself to the MEA in October 2024. She wrote that she began making restitution at that time and will continue to do so. After the MPD called her on Thursday and told her charges were going to bed filed, she spoke with her attorney. According to Nelson-Loupee, the attorney advised her not to go to the courthouse on Friday, and she did.

“I was told by my first attorney to NOT go to the MPD on Thursday as he had made other arrangements for me,” she wrote. “I engaged a new attorney who appeared with me this morning. I have made mistakes and I am actively working to rectify them. I am, and have been since October, working with a therapist. I am doing the work so that I can be the best wife and mom possible. I will continue to work to make this situation right for all parties involved. I thank you for your support and friendship.”

On Monday, MCSD Communications Director Abby Koch issued the following statement on behalf of the district.

“Marshalltown Community School District is aware of allegations which have resulted in charges involving a high school teacher who also serves in a leadership role within the Marshalltown Education Association. While the matter is related to union activities and falls outside the scope of the district’s operational authority, we remain committed to maintaining a professional and ethical environment for all staff and students. Upon learning of the allegations, the district placed the employee on administrative leave pending further review. We will continue to cooperate fully with any ongoing investigations,” it reads. “We appreciate the public’s patience as the process moves forward and direct any further inquiries relative to the investigation to the Marshalltown Police Department.”

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