School Embezzlement case continued

The plea date for the first of three former Olive Branch Middle School staff members facing embezzlement charges has been continued until a date uncertain, a spokesperson in the DeSoto County Circuit Clerk's Office said Monday.

The plea date for Kelli McMcGowen had been slated for Monday in DeSoto County Circuit Court.

In October, the three Olive Branch Middle School members had been indicted by a DeSoto County Grand Jury on a single count each of conspiracy and embezzlement.

Former Principal Michael McCoy, 43, of Olive Branch; former assistant principal Audrey "Brooke" Phillips, 31, of Memphis and former bookkeeper Kelli McGowen, 42, of Southaven are accused of taking more than $10,000 from various school accounts.
In addition to conspiracy and embezzlement, Phillips is charged with making false statements and misrepresentation.

If convicted of embezzlement, the felony carries five to 10 years in prison. Olive Branch police say this is the first time they have brought charges against former school officials in at least 20 years.

All three were booked into the DeSoto County Jail late last year and were released on a $7,500 bond each.

An internal school audit last June triggered the criminal investigation after auditors discovered irregularities in several accounts. Both McCoy and McGowen resigned in June. Initially, Phillips was transferred to another school but she later resigned.

"The findings of the audit indicated that inappropriate accounting procedures had been identified and that there was a substantial amount of revenue that should have been generated but was not recorded," Olive Branch Police Chief Don Gammage said at the time.

In addition to the internal audit for the 2011-12 school year, Gammage said investigators also looked at the school's financial records for another year.

Gammage said police have determined that some of the funds were used for personal items.