Worcester, Delaware teacher arrested on theft charges

FROM DELMARVANOW.COM  -

Authorities in Worcester County have charged a middle school teacher accused of stealing hundreds of thousands of dollars from the teachers union while she was treasurer.




Police also said the Worcester County Teacher's Association conspired to cover up the theft by making arrangements for restitution without contacting authorities that a crime had occurred.



Denise Inez Owens, 58, of Ocean Pines was responsible for the taking of more than $433,000 from accounts belonging to the Worcester County Teacher's Association, according to the Worcester County Bureau of Investigation.



At the time, Owens was in charge of all financial transactions for the WCTA, said Detective Kyle Clark, lead investigator.



"She had full access to the account," he said. "Nobody really checked it."



But after a while, the WCTA started to notice a few inconsistencies in its accounting. In early 2009, the union decided to hire an outside agency to audit its books, Clark said.



It was that forensic audit that showed the organization was short $433,784.52. Police did not break down how much money went missing from year to year.



No one outside the WCTA seemed to take notice for years. The police began investigating in February after The Daily Times published IRS tax filings that claimed Owens -- then going by her former married name of Denise Tull -- had oversight of more than $110,000 in WCTA losses for tax year 2009.



According to a publicly available tax filing dated March 13, 2011, obtained by The Daily Times, the union documented $111,589 in what it called "misappropriated funds" and noted the amount was pending an audit by a bonding company.



A letter attached to the tax filing stated Tull resigned as WCTA treasurer on March 31, 2009, and before that time, she had represented that all tax filings were current.



"However, the (WCTA) officers learned not only had the returns not been filed, but a substantial amount of money was embezzled (more than $100,000)," the letter stated.



Police in February began a theft investigation. It revealed that while treasurer, Owens allegedly had written numerous unauthorized checks to herself and others, and made withdrawals from the account for "personal issues and debt," police said. Clark declined to elaborate on the nature of those issues.



Police also said they learned Owens and WCTA attorneys agreed to have Owens begin paying restitution, but law enforcement was never notified of any theft or embezzlement.



When detectives met with WCTA leadership, "they denied any involvement with what was going on," Clark said.



"They didn't necessarily say it didn't happen," he said. "They didn't want to talk about it. They weren't cooperating."



Owens was arrested Friday. She was charged with theft scheme more than $500 and two counts of theft $500-plus. She posted $100,000 bond and is scheduled for a preliminary court hearing on Sept. 7.



When reached by phone Tuesday, Owens declined to comment. Clark said Owens' statements to police were limited before she secured an attorney.



Owens has been teaching in Worcester County since 1988, according to the school board. At the time of her arrest, she was employed as a special education teacher at Stephen Decatur Middle School.



"We are aware of the arrest and are currently reviewing the charges," said Barb Witherow, spokeswoman for Worcester County public schools. "This is a very serious matter. Upon thorough review, the Superintendent (Jerry Wilson) will be taking appropriate action."



Current WCTA president Helen Schoffstall said in a Jan. 11 interview that the union had accounted for all its funds.



"WCTA did not lose any money," she said. "WCTA finances were not out any money to my knowledge."



Phone messages asking for comment went unreturned Tuesday by Schoffstall, former WCTA President Terry Springle and Susan Russell, chief counsel for the Maryland State Education Association.



The WCTA most recently filed taxes Jan. 12. The filing notes the organization has about $60,000 in revenue and $49,000 in expenses for filing year 2010.



The group's tax-exempt status has been revoked since October 2011, according to the website Guidestar, which tracks IRS filings made by nonprofit agencies.



Additional Facts

MSEA OFFICIAL STATEMENT



The Maryland State Education Association issued this statement on the case Tuesday night:





Charges recently have been filed against Denise Owens, former elected treasurer of the Worcester County Teachers Association (WCTA), an affiliate of the Maryland State Education Association (MSEA). When MSEA discovered that WCTA had fallen into arrears in its scheduled state transmission of dues, the association confronted Ms. Owens, then treasurer of WCTA. Although Ms. Owens promptly resigned her position as treasurer and agreed to restitution, MSEA triggered a full investigation, including a forensic audit, which was submitted to a bonding company. The investigation determined that the funds in question were owed to MSEA and NEA rather than WCTA, and that the local dues money was not part of the mishandled funds. Ultimately, the bonding company's investigation was closed with no criminal or civil action and an agreement for restitution from Ms. Owens. Following this incident, MSEA and WCTA immediately implemented procedural changes to create greater transparency and oversight and avoid any future similar occurrences. At no time was there a loss of programs or services to WCTA members due to this issue.



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