A state-licensed therapist currently working for a counseling provider with a location in Burlington is now facing disciplinary action from an Iowa licensing board tied to prior criminal convictions involving theft and fraud.
The Iowa Board of Behavioral Health Professionals has filed disciplinary charges against 38-year-old Michelle Raye Stewart-Sandusky of Baxter, alleging she was convicted of offenses directly related to the duties and responsibilities of her profession.
The case carries local significance for Southeast Iowa because Stewart-Sandusky is employed by Therapy Group Incorporated, which provides counseling and family therapy services in Burlington and other Iowa communities.
According to state records, the board opened five separate investigations into Stewart-Sandusky during 2023 and 2024. The disciplinary charge was approved earlier this year but was only publicly released this week by the Iowa Department of Inspections, Appeals and Licensing.
A hearing before the licensing board is scheduled for July 10th.
Court records show Stewart-Sandusky was charged in 2024 with felony theft after Johnston police alleged she wrote bad checks totaling more than 86-thousand dollars through accounts connected to businesses she controlled.
Records also show she later faced forgery and fraud allegations connected to falsified financial documents tied to health insurance coverage.
The theft case was eventually resolved through a guilty plea to a reduced charge of third-degree theft, resulting in a suspended prison sentence and probation. In a separate case, Stewart-Sandusky pleaded guilty to insurance fraud and received a deferred judgment, meaning the conviction could eventually be expunged if probation terms are successfully completed.
State officials have not announced what disciplinary action could result from the upcoming hearing.