Prosecutors have promised to recommend probation for a woman who stole more than $26,000 from a Cody liquor store — if she repays all of the money before sentencing.

Terra Kunz was charged with felony theft in May after she was caught stealing Rocky Mountain Discount Liquor and Lounge’s daily deposits over a nine-day span in late April and early May. On Thursday, she pleaded guilty to the crime.

Her plea came as part of a deal with Park County prosecutors, in which they’ll recommend three years of unsupervised probation. However, that’s conditioned on Kunz paying back the $26,833.68 she stole by the time she is sentenced. If she fails to do so, the prosecution could seek as much as three to five years of prison time.

Kunz had been jailed from late May through Thursday, unable to post a $26,000 bond. However, as part of last week’s plea deal, the parties agreed to her release on a signature bond.

Kunz said she plans to begin working immediately and, rather than renting a residence, she’ll live with a family member in Sheridan. That way, she said, “I can put all of my money towards paying this restitution back.”

District Court Judge Bill Simpson encouraged her to work to gather money while out on bond.

“If you don’t have that restitution together, and we have to come back in for sentencing, you know that that could be a difficult situation for you and all involved,” Simpson warned.

Kunz said she understood.

The store’s second significant theft

She began managing the Rocky Mountain Discount Liquor in early 2024, after the longtime prior manager, Julia “Julie” Harvey, was caught stealing $193,267 from the store over a period of years.

Harvey, 62, served a few hours in jail and, as part of another plea deal, is now serving three years of probation.

At April’s sentencing, authorities indicated it’s unlikely that Harvey will repay even half of what she stole; she repaid $26,500 at sentencing and then agreed to pay at least $75 a month toward the remaining balance.

Kunz, meanwhile, has said she’ll pay back “every penny.” Prior to her arrest, she texted one of Rock Mountain Discount Liquor’s owners and described herself as “beyond embarrassed and ashamed” of her actions. She explained that she “got caught up with some people and got myself in a situation I felt I couldn’t get out of.” 

At a June hearing in Park County Circuit Court, Kunz’s court-appointed attorney, Tim Blatt, said his client “panicked because of what she got herself into.” Neither Blatt nor Kunz elaborated on the details.

During the June hearing, Kunz expressed confidence that she would find another job after being released on bond, but Deputy Park County Prosecuting Attorney Eichele expressed skepticism.

“You’re aware that you have now been alleged to have embezzled from an employer,” Eichele said. “What leads you to believe that anybody will possibly hire you again?”

“People make mistakes,” Kunz said. “I am owning up to this mistake and I am a hard worker — and my work ethic is very strong despite the mistakes I have made.”

A couple letters from a friend and a family member that were submitted to the district court this month reiterated that view. They noted that Kunz had never been in trouble with the law before and described the theft as out of character.

Store changes hands

At Thursday’s change of plea hearing, Eichele said Rocky Mountain Discount Liquors’ then-owners, Brandon and Kelly McArtor of Gillette, had expressed a “mixed” view of the plea deal.

“They don’t support the probation aspect of it,” Eichele said, “but they understand.”

The prosecutor’s remarks prompted the judge to call Brandon McArtor to the stand, who testified that he accepts the arrangement.

Rocky Mountain Discount Liquor recently changed ownership, as the McArtors and their company, Steck’s Inc., sold the business to Cassandra and Josh White of Cody earlier this month. The Cody City Council approved the transfer of the store’s liquor license to the Whites’ company, Western Events LLC, on Aug. 5 and the parties announced the sale on Facebook the following day.

The McArtors expressed their gratitude to the Cody area for “all the support and business through all the years,” while wishing the Whites the best of luck.

Simpson said it will be at least two or three months before he schedules a sentencing hearing, with more time potentially needed for Kunz to gather the required restitution.