Suspend AKC Privileges
I dont know why she stole the dog, but if she was convicted in a court of law of stealing then she should be banned from AKC events. People are kicked out for just swearing, stealing and neutering some one else's dog, no matter what they think of the other person, is not right at all.
AKC is also starting to take it upon itself to be a inspection body rather then a registry and they are raising all their fees because of it. I can see why people are joining UKC and other registries.
AKC is also backing the new PAWS legislation which will allow puppy mills to produce as many poor quality dogs as they want while limiting show breeders to only 6 litters a year. I dont think AKC is representing its members anymore.