Yellowknife (Jun 02/06) - A struggling single mother who stole more than $12,000 from her boss has been sentenced to one year of house arrest.

Despite being convicted of fraud following a trial earlier this spring, Krista Harbin maintained she was innocent during her sentencing hearing in territorial court last week in Yellowknife.

The 30-year-old mother of two, who has since returned to college, signed her name to thousands of dollars in blank cheques from her employer. Harbin had repaid about $5,000 of the $12,000 before her conviction in territorial Supreme Court. But she denied stealing the money, claiming some of it was a pay advance and denying any knowledge of the rest.

Justice John Vertes decided despite her lack of remorse, Harbin does not pose a danger to society and therefore, should not be jailed.

"I am satisfied she does not need to be removed from the community," he said. "In the great scheme of things, this (theft) is on a lesser scale than most of the fraud cases that come before this court."

Vertes gave Harbin an 18-month conditional sentence, which includes the one year of house arrest. Harbin is allowed out of the house for work, school, medical emergencies and for no more than six hours per week to shop and play with her kids, aged two and six.

She must also repay the $7,200 left outstanding before June 2007. If she follows the terms of the sentence, she will not face jail time.

Crown attorney Shelly Tkatch had called for a six to nine-month jail term, highlighting Harbin's refusal to admit the cheques, nine in all, had been forged.

"She lacks remorse and does not take responsibility for her actions," Tkatch said.

Outside the courtroom, Harbin's former boss said the fraud hurt his small, family-run shop.

"You can't afford unexpected losses like that," he said, noting he gave Harbin the blank cheques to run errands.

Still, he said he was satisfied with the house arrest term.

"The message is: You can't steal from your employer," he said. "I think it's an adequate sentence."