Witness list in UNM athletics embezzlement case has familiar names

The former University of New Mexico men’s basketball staffer indicted last month on a felony charge of embezzling for what the school alleges was his bilking the school out of about $63,000 more than two years ago did not appear in court this week as originally planned.

Instead, as is common for an out-of-state defendant accused of a white-collar crime, 35-year-old Cody Hopkins waived his arraignment on one felony charge of embezzlement and five counts of forgery.

Court documents show his Albuquerque attorney, Paul Kennedy, filed for the waiver of appearance and signed off on his standard conditions of release on Friday – conditions that include Hopkins being released on personal recognizance, being allowed to remain in Texas, where he lives and works at Navarro College in Corsicana, Texas, not consuming alcohol or drugs, maintaining weekly contact with his attorneys and avoiding contact with “the alleged victim or any witnesses who may testify in this case.”

Meanwhile, the initial witness list the state submitted to the court reads like a who’s who from UNM press clippings of the past several years.

Potential witnesses the District Attorney’s Office has indicated it may call at evidentiary hearings or trial include former Lobos men’s basketball coach Craig Neal, who was Hopkins’ boss; current UNM Board of Regents members Marron Lee and Bradley Hosmer and former Regent Jack Fortner (all members of the Regents’ Audit Committee); current and former Lobo assistant coaches who the state claims had their names forged or witnessed Hopkins’ actions; and Daniel Libit, the independent journalist whose website NMFishbowl.com published an article featuring several Hopkins statements about the case.

Among those not listed on the state’s potential witness list, but who the defense may call if the case goes to trial, are former UNM athletic director Paul Krebs, former Deputy Athletic Director Tim Cass, and former athletics department Director of Business Operations Yvonne Otts. Cass and Otts, UNM has said, were supervisors who met regularly with Hopkins about details of the purchasing card UNM claims he used to embezzle money. Neither halted use of the card while the alleged crimes were taking place.

Cass has told the Journal he never met with Hopkins about the card.

Former Ashford Academy headmaster who pled guilty to embezzlement receives probation

A Houston County Judge granted former Ashford Academy headmaster probation, Tuesday morning.

Judge Michael Conway originally sentenced Douglas Bauer to 48 months in the state penitentiary, but suspended that sentence and agreed to grant Bauer probation.

Conway agreed to give Bauer five years probation time with multiple guidelines, including that Ashford Academy board members do not oppose probation, and that the proceeds of Bauer’s home sale be applied to his restitution.

The defense and the state agreed that, to the best of their knowledge, the board members were not opposed to probation.

Bauer’s probation case will be transferred to Texas. Currently, Bauer is employed in Texas. Conway also added in the request for probation that Bauer participate in anti-theft classes if available.

Bauer pled guilty on March 5 to 25 felony charges, including theft of property and possession of forged instruments.

Police believe Bauer made illicit financial transactions related to the school totaling more than $37,000. Bauer admitted to stealing those funds while in charge of the private school.

Each month the board members of Ashford Academy would meet and write personal checks of about $600 each for the school’s debt. Bauer was to use the money collected to pay the school’s bills.

Board members became suspicious when they starting receiving delinquent notices for bills associated with the school

Former church official avoids jail on embezzlement charges but must repay $180,000

A former chief financial officer and executive pastor for Roanoke’s New Century Church, who pleaded no contest to three counts of embezzling funds from the organization, will not have to serve time behind bars.

But William Jared Walters, 33, of Roanoke, is going to have to make regular efforts to pay back $180,000, according to his plea agreement.

About 30 members of the church were on hand Tuesday in Roanoke Circuit Court as Walters entered his pleas and was sentenced.

Roanoke Deputy Commonwealth’s Attorney Betty Jo Anthony said investigators estimate Walters actually took closer to $239,000, but they settled on $180,000 in exchange for the plea. That’s the amount they could prove, she said.

Walters was with the church from 2007 to 2015, and Anthony said he siphoned cash through check kiting, by using a church credit card to pay off personal debts, and by making loans to himself, often multiple times a day at thousands of dollars each.

Embezzlement is a Class 5 felony that can bring up to 20 years in prison, but Walters received six years total, entirely in suspended time.

“We almost never ask for or agree to no jail time, but this was a specific request of the church,” Anthony said.

Those six years are suspended against restitution, and on Tuesday, Walters paid $8,000 toward the church and also surrendered a $2,000 bond.

He has until August to turn in $12,000 more: $1,000 from his tax refund, $2,000 from a work bonus, $4,000 from real estate he said he is selling on Bent Mountain, and $5,000 from the sale of his car.

That still leaves approximately $158,000 owed, and starting in October he will be required to pay it off in increments of at least $500 a month.

At that rate, it will take a little over 25 years for the church to be made whole. As long as restitution is owed, Walters will remain on probation and could see his suspended time revoked if he misses a payment.

Judge David Carson addressed Walters’ lack of jail time and cautioned Walters that although he intended to honor the will of the victims, the agreement signified Walters’ second chance

“You have received all of those chances today. There will be no third chance,” he told Walters.

Although Walters’ promise of a work bonus indicates he is currently employed, defense attorney Rob Dean said he could not comment on Walters’ job status.

Walters also declined to say anything about the case in court.

In an emailed statement sent after the hearing, Dean wrote, “Mr. Walters maintained his innocence throughout the proceedings and continues to do so. Mr. Walters nonetheless desired to resolve this matter so that all parties could move forward.”

After the hearing, New Century associate pastor Thomas Brown stressed that the loss was not just financial, but personal as well.

“He was one of my best friends. I’m the one who hired him,” Brown said of Walters. “We were never seeking out vengeance.

“I think the hardest thing is, no repentance was made. He still maintains his innocence. That’s the hardest thing.”

Nonprofit group's former leader sentenced for embezzlement

The former executive director of a nonprofit childcare and community program who embezzled more than $300,000 from the organization has been sentenced to more than three years in federal prison.

Kiburi Tucker had pleaded guilty to wire fraud and four counts of tax evasion. He will have to pay $133,624 in restitution to the IRS and forfeit $334,116 under the sentence imposed Wednesday.

The 43-year-old Newark man led The Centre, a now-defunct Newark-based nonprofit. Prosecutors say he took $332,116 from the group between 2012 and 2015, using it to pay for gambling expenses, travel and to furnish his home.

Prosecutors say Tucker filed false personal income tax returns in which he under-reported the money he embezzled and income from his partnership in Elite Strategies, a political fundraising and consulting firm.

Treasurer accused of embezzling from Wilton High School PTSA

A Norwalk woman was arrested Wednesday for allegedly embezzling from the Wilton High School Parent Teacher Student Association, where she served as the treasurer. 

Police say in January, the president of the Wilton High School PTSA received a complaint of larceny by embezzlement, where an excess of $20,000 had been taken from the PTSA account via unauthorized transactions. 

After an extensive investigation, it was discovered that the treasurer, 42-year-old Crismari Feliz, had stolen $24,008 by making unauthorized withdrawals from the PTSA checking account. She then used those withdrawals to allegedly pay her personal credit card bills and car lease payments. 

Feliz was charged with larceny and released after posting a $25,000 bond. She will appear in court on April 30th. 

PTO president faces embezzlement charges

The Grace Miller Elementary School PTO president stole approximately $8,000 from the organization over eight months, according to the Fauquier County Sheriff’s Office.

Sheriff’s investigators Tuesday charged Kiley Morgan Gonzalez, 29, of Bealeton, with 10 counts of embezzlement and five counts of forgery and uttering, according to Sgt. James Hartman.

Another PTO officer filed a complaint that Ms. Gonzalez “had forged checks and made transfers involving the PTO account and a personal bank account,” Sgt. Hartman said. 

On Monday, Detective Candyce Shaw obtained warrants charging Ms. Gonzalez. The next day, the suspect, accompanied by her attorney, “turned herself in,” the sergeant said. She “was taken before a magistrate and released on her own recognizance.”

The crimes allegedly took place between October and this month

Former PTA treasurer who embezzled is sentenced to nine months in jail

The former treasurer of a countywide PTA in Maryland’s largest school system has been sentenced to nine months in prison after embezzling more than $39,000 from the group. But prosecutors said the treasurer’s wrongdoing extended beyond that, with testimony that money from an individual school’s PTA was used to pay for gas, clothes, groceries, makeup and a trip to the Statue of Liberty.

Lisa Betts, 46, was sentenced Tuesday in Montgomery County Circuit Court and ordered to repay more than $72,000. She will serve five years’ probation.

Betts stole $39,015 from the Montgomery County Council of Parent-Teacher Associations, writing checks and altering bank statements to hide her activities. The Montgomery County PTA represents more than 50,000 members in 198 parent groups in the county’s public schools.

Betts will pay $1,000 to the countywide PTA for its insurance deductible and $27,000 to Travelers Insurance, which insured the school group.

She was also ordered to repay $44,000 to the Greencastle Elementary PTA, where she previously served as an officer.

Betts’s misappropriation at Greencastle — where more than tw0-thirds of students qualify for free or reduced-price meals — started as early as 2011, prosecutor John Lalos said after Betts pleaded guilty to embezzlement in November.

Montgomery PTA board members began raising questions about financial reports six to seven months after Betts became treasurer. An audit team was formed, and police were contacted in April 2017.

Early on, Betts claimed she used the money to repay funds she diverted from PTAs at Greencastle in Silver Spring and Benjamin Banneker Middle School in Burtonsville.

But Lynne Harris, president of the countywide PTA, said she told the court that Betts had committed hundreds of individual thefts, starting with the school PTAs and extending to the county organization. It was not a single act or lapse but continuous, she said, extending over almost six years.

“There were some alleged shopping trips,” said Ramon Korionoff, a spokesman for the Montgomery County State’s Attorney’s Office. According to bank statements, Betts also used PTA money to see a show in Las Vegas and for regular trips to Starbucks.

“All the shoes, hair salons, restaurants, liquor stores, Mandalay Bay,” Harris said, referring to a Las Vegas hotel. “It’s all in the bank statements.”

Betts’s attorney, Oleg Fastovsky, did not respond to messages seeking comment.

Laura Stewart, a leader in the countywide PTA, headed the audit committee last spring. She said that when members became suspicious about the organization’s financial activities, they requested bank statements in January 2017. Stewart said Betts showed the board fake bank statements in early March 2017.

“She forged the bank documents,” Stewart said. She said Betts would get the original bank documents, scrub them and then present them as “the real bank statement.”

Betts resigned as treasurer shortly after the audit committee saw the real bank statements in April 2017.

Copies of bank statements provided by Harris reveal discrepancies between the documents Betts provided and what was on EagleBank statements.

Betts also wrote and cashed checks written to “cash” and wrote checks to herself as reimbursement that she used to pay her personal credit card bills, according to an impact statement Harris presented in court.

Today’s sentence sends a strong message to the community. Do not steal from nonprofit groups which benefit children. We will hold you accountable,” Korionoff said in a statement.

The Montgomery PTA operates on an annual budget of $60,000 to $70,000, Harris said, which is used for advocacy, an arts festival and informational events.

Harris said she does not think the organization’s reputation will be tarnished by Betts’s sentencing. “We’ve already restored trust in the PTA because I think our leadership team started off being utterly and completely transparent in everything we do,” she said.

Former Grafton teacher charged with embezzlement of union funds

A former elementary school teacher and union treasurer is accused of taking nearly $20,000 from the Grafton Teachers Association.

Kerrie M. Clarke, 45, of 6 Elizabeth St., North Grafton, was released on personal recognizance after a not-guilty plea was entered at her arraignment Thursday in Westboro District Court. She is scheduled to return for pretrial conferences June 1.

Ms. Clarke resigned Nov. 8, 2017, from her teaching position at Millbury Street Elementary School, according to Superintendent of Schools James Cummings. He said earlier that no public money was involved.

According to court documents, GTA co-presidents contacted the Grafton Police Department in October to report theft or fraudulent account activity by Ms. Clarke, who served as treasurer between January 2016 and October 2017.

GTA officials told police that a forensic audit of the GTA account was conducted by the Massachusetts Teachers Association, which found that numerous transactions, including unauthorized payments, withdrawals and purchases, had been made by Ms. Clarke from the GTA bank account held at Homefield Credit Union during the time she was treasurer.

Also, according to the application for criminal complaint, numerous checks from the GTA account were written by Ms. Clarke to herself and deposited into her personal bank account.

The total amount of losses and unauthorized transactions reported by the GTA and the Massachusetts Teachers Association was $19,819.97.

A summons was mailed to Ms. Clarke on March 22 after a probable cause hearing was held. She is charged with larceny over $250 by a single scheme and association officer embezzlement of more than $250.

Kansas church discovers $100K embezzlement

Officials of Unity of Wichita held a news conference Sunday to announce the recent discovery that in excess of $100,000 was missing from church accounts, according to a media release from the church.

Senior Pastor Reverend Daybree Thoms said, “It is with great sadness that we had to notify our congregation today, that a trusted church member has confessed to systematically embezzling money from Unity of Wichita for several years.

Because the amount is in excess of $100,000, we have reported the loss to authorities and will allow the justice system to follow through with appropriate action.”

Thoms explained that because she was only recently appointed new Senior Pastor for Unity of Wichita, she had requested that a routine audit of church finances be conducted. “It was that routine request for an audit that prompted the church bookkeeper to submit a written confession to church officials,” said Thoms.

Unity of Wichita Board of Trustees President, Joe Dunlavy, said, “This revelation is, in no way, a reflection on our previous senior pastor, our interim pastors nor any member of the Board of Trustees. This individual was a highly respected member of the church leadership and has admitted to being solely responsible for the missing funds.”

Dunlavy explained that though the discovery is fiscally painful for the church, it is the emotional shock that is most difficult for the congregation. “Fundamental to Unity’s principles and teachings is the belief that we are each, individual expressions of God; so, this is extremely devastating because the individual in whom we had entrusted our finances was a highly respected and beloved member of our church family.”

If there is an “up side” to the discovery that such a large amount of money is missing, Rev. Thoms said, “It’s my hope — and the hope of everyone at Unity of Wichita— that our experience will serve as a reminder to all churches: that, though we trust in God, when it comes to finances, audits are still necessary.” She said no church should entrust so much responsibility in just one individual.

“Oversight and transparency,” explained Thoms, “should be paramount in the financial procedures of any church whether large or small. And, regardless of the misguided reasons for having betrayed the congregation’s trust, we still hold the individual who committed this crime in our prayers and extend our love and forgiveness. Unity is about making our spiritual principles and ideals come alive — even in situations like this.”

“As the President of the Board of Trustees,” said Dunlavy, “I am grateful that Reverend Thoms wisely requested an audit as she stepped up to become our Senior Pastor; because, if she hadn’t, the problem may, very well, have persisted indefinitely. If nothing else,” Dunlavy continued, “it is certainly a relief to one-and-all, to discover the problem sooner than later. With Wichita State University’s Innovation Campus ramping up right across the street from Unity of Wichita, we are on the threshold of an exciting new era in our history. Now, the healing can really begin.”

Unity of Wichita is a member of Unity Worldwide Ministries in Lee Summit, Missouri.

Solid financial practices pay dividends for churches

FROM churchexecutive.com

 To start, make sure your church management software integrates with a strong financial software designed specifically for churches. This is why FellowshipOne, a leading provider of church management software, integrates with ShelbyFinancials, a solution trusted by ministries across the country for 40 years.

Benefits of integrating financials and church management solutions include:

• Reducing the chance of data transcription errors that come from moving data manually from your financial software to your church management software;
• Easily accessible records on people and money; and
• The ability to produce combined reports on membership and finances.

Next, take a careful look at how your ministry’s handles its finances, and make sure you have some best practices in place. Alfred Johnson, a former pastor of 30 years and an expert in financial and church management software, has consulted with hundreds of churches in his career. He is also the product owner of ShelbyFinancials.

In his role as a consultant, Johnson has helped many churches get the most out of their software by establishing best practices when it comes to accounting. He emphasizes that it is essential that pastors have a clear picture of the church’s financial standing.

“Many pastors don’t have a bookkeeping background, much less an accounting background. That means that for pastors, sometimes just understanding a basic statement of financial position might be confusing,” he says. “Therefore, it’s important for the church accounting office to produce specifically designed reports that can provide the pastor with a clear and concise financial status of the church.”

Building the kind of detailed, accurate financial overview that the pastor and church financial leadership needs starts with finding the right software, Johnson says. “Churches should be using accounting tools that are designed for nonprofit accounting — better still, programs designed for churches.”

Look for in a financial solution is the ability to leave a transparent and secure audit trail. “It’s important that the software you choose keeps detailed records of all changes made throughout the process to assure that nothing has been altered against church policy,” Johnson says.

While many do not like to think about it, churches are not immune to things like embezzlement. In fact, a 2017 study by Lifeway Research reveals embezzlement of funds has occurred in one in 10 Protestant churches. “Churches run on trust — but they also know people are imperfect and can be tempted,” writes Lifeway Research Executive Director Scott McConnell. “That’s why safeguarding a church’s finances is an important part of ministry.”

“Ideally, you want to avoid software that allows users to change the General Ledger record,” Johnson points out. “If you have to use software that has that kind of access, then you should have a very strict separation of duties policy in place, along with weekly reviews. And that all takes time and exposes the church to risk.

“Instead, best practices dictate a church should never create a structure or situation where staff have the power to manipulate the records,” he advises. “Also, to assure further security and transparency in their ministry’s bookkeeping, pastors should set up an in-house audit for each year that they do not have a full formal audit by an outside firm who specialties in non-profit accounting.”

Define clear roles in the accounting department. Keeping clearly defined roles in the accounting department can help keep the church’s books clean, Johnson says. “For example, having one person count the weekly offering and depositing the funds can be a risky practice,” he explains. “Also, the person entering accounts payable invoices should not be the same person that is approving and printing the checks.”

Choose a financial solution that will work well with your church management software. As Johnson points out, this builds even more efficiency into the process. It also ensures that things like Contributions can flow smoothly across both solutions.

“Auditors like to make sure that reports generated in each sub ledger match what is reflected in the General Ledger,” Johnson says. “Without a connection with the General Ledger — say, from Contributions — that task can be difficult and might create a condition where an auditor cannot complete the audit.”

“[F]or pastors, sometimes just understanding a basic statement of financial position might be confusing. Therefore, it’s important for the church accounting office to produce specifically designed reports that can provide the pastor with a clear and concise financial status of the church.”

Pick a program that can grow with you, and buy from a company that can help you use the software more efficiently. As Johnson points out, ShelbyFinancials has a number of features that strongly support the most demanding separation of duties.

“In fact, if the church has the staff, it can have one or more people entering invoices, creating billing, counting money, making deposits, printing checks, sending out Accounts Receivable statements, entering hours worked into Payroll, printing checks or creating ACH deposits, as well as an accounting manager who reviews and posts all journal entries produced by sub-ledger activity.

“Use one of our consultants to help create, or revise the churches chart of accounts,” he recommends. “Not having a properly constructed chart of accounts can lead to extra work in creating reports. It can also lead to producing reports that are hard to understand.”

Woman on the run in Pikeville church embezzlement captured in Florida

A woman wanted for allegedly stealing money from a Pikeville church has been captured, and soon will be on her way back to face criminal charges.

Authorities in Florida arrested Michelle Allen Wednesday in Daytona near Daytona International Speedway. Pike Commonwealth’s Attorney Rick Bartley said Allen will be extradited back to Pike County, where she will face charges stemming from her allegedly embezzling more than $10,000 from the Pikeville First Presbyterian Church.

Michelle Allen’s husband, John Allen has been in custody in Pike County in relation to the case since November. Bartley said the couple, who were both employed at the First Presbyterian Church, stole money from the church and purchased gift cards and other items from several local retail stores.

John Allen also allegedly stole a van from the church, but it was later recovered. He was arrested last November for alleged shoplifting in South Williamson. Michelle Allen allegedly went on the run.

The details for Michelle Allen’s extradition back to Pikeville are still pending. But when she returns to Pike County, she’ll face a felony theft by deception charge, and a possible prison sentence of up to ten years.

South Dakota woman who embezzled from regional Lakota church group, business group sent to prison

 A 61-year-old Pierre woman who had just been caught embezzling from the Fort Pierre Development Corp. and then embezzled from a regional Lakota church organization has been sent to prison.

Joni Boub was on probation for taking $38,784 from the business organization embezzlement when she then admitted to embezzling $44,166 from the Dakota Association of 13 Indian congregations in South Dakota, North Dakota and Nebraska, of the United Church of Christ.

In a joint sentencing hearing Thursday, April 26, in Pierre with prosecutors from Hughes and Stanley counties, state Judge Patricia DeVaney ordered Boub to spend about three years in prison.

After tearfully hugging several family members as well as a church leader who spoke at the hearing as a key victim of the crimes, Boub was led out of the courtroom to begin serving her prison time.

DeVaney also ordered Boub to pay restitution of $73,514. That includes $29,348 she still owes on the $38,784 she stole from the development corporation.

Boub was the sole office manager of both organizations.

Originally the amount it was reported she embezzled from the church group, then based in Pierre, was about $60,000.

But Toni Buffalo, program coordinator for the Dakota Association now based in Eagle Butte, S.D., said on Thursday that the church group deducted from the restitution she owed the salary Boub received for office work she performed for the association.

Buffalo gave a victim impact statement at the hearing. She also, in a rarely seen move, hugged Boub tearfully after the sentencing hearing.

The charges say Boub began stealing from the church group in June 2015, shortly after she was sentenced for the Fort Pierre embezzlement; and it continued until July 22, 2016.

In 2015, Boub was sentenced in court in Fort Pierre to 10 years in prison for embezzling from the development corporation; all the prison time was suspended and she was put in six years of supervised probation and ordered to pay back the money.

In March she pleaded guilty to violation probation on the Fort Pierre case and to the newer embezzlement charges in Pierre. At that hearing, Boub said she spent the money on medical bills.

In a victim impact statement Thursday, Buffalo said Boub is an enrolled member of the Rosebud Lakota tribe, as was her mother. Her mother's death in 2016 made Boub's mental health problems get worse, Buffalo said. Although she believes in forgiveness, she told the court that Boub's crimes hurt the churches and she must be held responsible for that.

One of the 13 Lakota congregations in the Dakota Association, at Cannonball, N.D., burned down in 2015 in a prairie fire. Boub's embezzlement was related to the misuse of about $30,000 in donations for that congregation to help rebuild. Boub's crimes also had a lasting impact, making fundraising more difficult, Buffalo said.

With her otherwise fairly clean record, Boub will serve about six months in prison on the two years for the Fort Pierre crime, and about three months on the one-year sentence for the Pierre crime, DeVaney told her. Plus, Boub might qualify for work release, DeVaney said.

Buffalo, of the Dakota Association, and Dave Bonde of the development corporation, say procedures had been changed in their offices so that one person could not have such access to the funds, as Boub did.

The sentence handed down Thursday seemed fair, Buffalo said.

"I'm OK with what the court has done."