Paulette Reed, former office manager for two local law firms, pleaded guilty today to stealing

$556,765 from the firms to finance her daughters' college educations and pay household bills.

Reed, 44, of East Milnor Avenue, Lackawanna, pleaded guilty to two second-degree grand

larceny charges for her thefts from Lippes Mathias Wexler Friedman LLP of Buffalo and Simpson

and Simpson of Williamsville.

Prosecutor Paul Williams III said Reed, using company checks, wire transfers and bank

checks, stole $282,357 from the Lippes firm from May 2003 through February 2008 while serving

as its bookkeeper and office manager, and she stole $274,408 from the Simpson firm from July

2008 through last July.

With members of her family and representatives of both law firms in court, Reed told Erie

County Judge Sheila A. DiTullio she was using the funds to finance her two daughters' college

educations and pay family bills.

At Williams' demand, Reed was forced to sign confessions of judgment to fully repay both

firms. The prosecutor told the judge Reed has already repaid the Lippes firm $250,000 and the

Simpson firm, a patent law concern where she worked as accountant and business manager,

$5,219.

He told the judge Reed still owes the Simpson firm $269,189 and the Lippes firm $32,356.

DiTullio refused to make a sentencing commitment, telling Reed she faces a May 24

sentencing ranging from probation with full restitution to a prison term of up to 15 years.

With the prosecutor's agreement, she was allowed to remain free without bail pending

sentencing.