Trial set for former New Mexico athletic director

 A judge has set a trial date next year for former University of New Mexico athletic director Paul Krebs on embezzlement and other charges.

Krebs left the university in 2017 amid questions over spending. At the heart of the case are accusations that he used public money for a lavish golf trip that he said was meant to strengthen relationships with donors.

Krebs’ attorney Paul Kennedy has said he’s confident his client will be vindicated at the trial set for October 2020.

An indictment filed in August charges Krebs with embezzlement for using school funds to pay for three people not affiliated with the university to go on the 2015 trip. He’s also charged with lesser embezzlement counts, larceny and tampering.

Prosecutors accuse Krebs of bypassing university oversight, deleting records and trying to cover up the spending by reimbursing the university for part of the trip.

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The state began an investigation in 2017 after it was discovered the university used nearly $25,000 to pay some private donor expenses on the Scotland trip.The scandal came as scrutiny intensified over the athletics department’s budget. A 2017 special audit of the department and affiliated fundraising groups found a lack of financial controls over public money that resulted in unpaid access to luxury basketball arena suites, overpayments to coaches and donor perks of golf and alcohol that failed to elicit donations.The department has made a number of changes over the past year that include a decision by university regents to cut four sports, including men’s soccer, in an attempt to control spending.

Krebs served as athletic director from 2006 to 2017, when he announced his retirement.

Charlevoix school sports booster club's treasurer accused of embezzlement in Michigan

 The treasurer of a middle school/high school sports booster club has been charged with embezzling money from the organization, Michigan State Police said Friday.

Marian Lewis has been arraigned in 90th District Court in Charlevoix on a felony charge of embezzlement from a nonprofit more than $1,000 but less than $20,000, officials said. If convicted, she faces up to 10 years in prison.

A judge scheduled her next court date for Nov. 5.

Detectives with the state police's Gaylord Post were called by the Charlevoix Sports Boosters to investigate a complaint of embezzlement by Lewis, who was recently elected the group's treasurer, police said.

Board members called police after they noticed two checks from the club's checking account were written out to her, according to authorities.

Investigators found cash withdrawals and a debit card transaction she had also made, officials police said.

Charlevoix is about 275 miles northwest of Detroi

Former president of nonprofit pleads not guilty to embezzlement in California

The former president of a nonprofit that serves as the advocacy arm for all the school districts in Riverside County pleaded not guilty today to embezzlement and other charges stemming from the alleged theft of $40,000 from business accounts to pay personal expenses.

William Clarence Newberry, 59, previous head of the Riverside County School Boards Association, was charged in June with the embezzlement count, as well as misappropriation of funds and two counts of grand theft.   

Jesus Holguin took over as acting president of the RCSBA this summer, according to the California School Boards Association.   

Newberry, who is free on a $40,000 bond, was arraigned before Superior Court Judge David Gunn, who scheduled a felony settlement conference for Oct. 30 at the Riverside Hall of Justice.

According to the District Attorney's Office, its investigators were alerted last November to possible illicit use of funds belonging to the RCSBA, along with a club at Eleanor Roosevelt High School in Corona.

The RCSBA represents the county's 23 school districts, providing assistance with promotional campaigns and lobbying on behalf of the districts to oppose or support legislation, according to its website.   

RCSBA Treasurer Tom Hunt brought his findings to the D.A.'s office not long after he was appointed to his position, culminating in an investigation that uncovered numerous instances between December 2013 and February 2017 when Newberry allegedly used the organization's debit card to pay his bills and amortize other debts, prosecutors said.   

The alleged theft of members' dues payments totaled $17,000, according to the agency.

Through additional scrutiny of Newberry's transactions, it was determined that the defendant had allegedly drained $23,000 from the Roosevelt High Climate Booster Club.

Newberry is a prior member of the Corona-Norco Unified School District Board of Education. He has no documented prior felony or misdemeanor convictions.

FTCC instructor arrested on embezzlement charges in North Carolina

A welding instructor at Fayetteville Tech Community College was arrested on Monday and charged with embezzlement.

Fayetteville police arrested Jason Carl Tilley, 32, of the 4500 block of Dunn Road, on charges of embezzlement of school property valued at over $10,000, according to arrest warrants.

Tilley sold the welding equipment throughout Cumberland, the arrest warrants state. When confronted about the stolen property, he confessed to FTCC officers, according to the warrants.

Tilley is a welding instructor at FTCC and has been employed with the college since Dec. of 2017. He has been suspended without pay, according to college officials.

The owners of Carolina Pawn Shop notified a school employee of the suspected theft. The FTCC office of public safety and security investigated the alleged theft, and Fayetteville police were notified according to college officials.

Tilley was given an unsecured bail at $8,000.

Charges dismissed against one of two accused in Cedar Springs Youth Football embezzlement in Michigan

Charges have been dismissed against one of two people accused of taking money from the Cedar Springs Youth Football organization.

Kent County prosecutors late last month dismissed charges against 48-year-old James Michael Crouch.

Crouch and Heather Vaughn were charged in July 2018 with embezzlement between $1,000 and $20,000. Both were on the Cedar Springs Youth Football board in 2017.

Vaughn was set for trial Oct. 7 but her case now is adjourned to February, court officials say.

Police said up to $12,000 went missing from proceeds collected in the 2017 football season.

Kent County Prosecutor Chris Becker said the decision to dismiss charges against Crouch came after prosecutors reviewed all the evidence.

They decided there was “insufficient evidence to prove beyond a reasonable doubt that Mr. Crouch embezzled anything.”

Pair plea in embezzlement of youth football league funds in West Virginia

 A Bloomingrose couple pled in Boone County Circuit Court on Sept. 30 regarding a 14-month investigation into missing funds from the now defunct Seth Midget Football League.

Jeremy Johnson pled guilty to the misdemeanor offense of embezzlement and faces up to a year in jail.  Pamela Johnson pled guilty to the felony offense of embezzlement and faces not less than one nor more than 10 years in prison. They are scheduled to return to court on Nov. 13. Details regarding any agreement for repaying the stolen funds was not available.

Between June 2014 and July 2018, the couple served as president and treasurer for the Seth Midget Football League. During this time they had unfettered access to the finances of the organization. The league folded in June 2018.

Investigator Captain David Sutphin with the Boone County Sheriff’s Office was focused on specific areas including suspicious ATM withdraws, "cash back" after purchases of other items at multiple retailers and more than $1,100 spent in South Carolina while vacationing at Myrtle Beach, which came after a vacation to Disney in Florida. The suspicious transactions all took place using a debit card in the league's name. Sutphin said that he is pleased with the results of the court proceedings.

"I think a felony embezzlement on her and a misdemeanor embezzlement on him is a good outcome from everything I looked at in my investigation," he said. “I’m pleased with that result.”

Sutphin had given of his own money to the league and even helped arrange fundraising events including one in Madison where Mayor Sonny Howell and the city council gave full access of the Madison Civic Center to the league for a fundraising event. 

The Captain became suspicious of the league when he heard that their numbers were down and he knew that over 80 kids participated the season before. He also was given a tip from a concerned volunteer that things may not be as they seemed.

Sutphin said that the most painstaking aspect of the investigation was combing through the bank records of both the league and the Johnsons.

“It was the bank records,” he said. “I had to go through five years of complete records for the league and the Johnsons’ personal account,” he said. “Then, matching things that they said they bought with the associated receipts. That took the most time. I went through thousands of grocery receipts and had to determine what was used for personal use and what was used for the league. I used menus from the events matched up with the associated dates, which were provided by the public. I got subpoenas and search warrant for every store they purchased items at.”

The purchases were made with the league’s debit card for the account at Whitesville State Bank.

Sutphin’s report showed $14,594 in cash withdraws, $4,640 in cash-back transactions, $1,000 in checks made out to cash, $22,647.04 spent at Sam’s Club, $3,310.83 spent at Kroger, $2,702.38 spent at Wal Mart and $1,159.43 spent on a Myrtle Beach vacation. The couple spent $550.66 at Lowe’s and $225.45 at the Country Store in Seth.

A total of $25,588.52 in league money was deposited into the Johnson’s personal bank account.

Sutphin’s comprehensive investigation reveals that only $7,754.83 in receipts could be recovered from Sam’s Club and of those receipts a total of $860 came via cash-back transactions. The couple received $640 in club membership cash rewards.

Only $1,340.33 could be documented through receipts at Wal Mart while $400 was obtained in cash-back transactions at the retailer.

At Kroger, $644.25 in receipts were recovered with $200 in cash-back transactions documented.

Additionally, a significant amount of cash was not deposited during the 2017 calendar year making it impossible to document the total of monies taken during that time period.

Fort Myers teacher accused of stealing money from drama students in Florida

A Fort Myers High School teacher is being investigated for stealing money raised by drama students.

The teacher, Laura Licata, headed District 6 of the Florida Thespians group, which includes 30 schools and 700 students in the district from Bradenton to Marco Island.

It's so serious that the state organization dissolved the district that the students first participate in before moving on to the state competition.

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This doesn't mean they still can't participate in upcoming events. But they will now have to travel to other districts around the state.

Students call that disappointing and feel like the Florida thespians are closing the curtain on students in District 6.

Students at Cypress Lake High School are continuing to practice although their future is uncertain because their district was dissolved.

“We found out in class, and all of our faces just dropped. We were devastated,” explained JJ Fuentes.

Licata has been removed from the classroom.

“It's one person, and now we're all getting crapped on for it,” expressed Carlos Robbins, one of the students affected.

He is referring to 700 drama students in 30 private and public schools, which make up District 6 in Southwest Florida.

“We've been preparing these pieces for months and months now,” noted Abbey Corcoran.

The Executive Director for the International Thespian Society, Julie Cohen, said every student will still have an opportunity to participate at the district level.

“They'll have to travel to a different location. For some students, it actually will be close to their home school. For some it may be a little further,” Cohen said.

Gwynetta Gittens, chair of the Lee County School Board, said that is a concern.

“And to think that would be taken away from them... we just can't have that,” Gittens said.

The students, though, refuse to give up.

“At the end of the day, I think we just need to be hopeful and look forward,” said Ricardo Bocanegra.

The school district confirmed it is investigating Licata's management of the checkbook.

Sources close to the investigation said that nearly $40,000 is missing from the District 6 account.

The school district says it will turn over the investigation to the Department of Education and law enforcement.

Indictment clouds appointment at Dolores schools in California

The new secondary dean of students in Dolores School District Re-4A is facing embezzlement charges by the San Diego District Attorney’s Office, but school administrators hope he will be exonerated soon and have expressed full support of his hiring.

Justin Schmitt, 36, is one of 11 defendants in a case involving a $50 million charter school fraud, although his attorney Eric Beste emphasized that Schmitt was a salaried employee and not an owner of the company, and that no one has yet been convicted in this case

He began working for Re-4A on Aug. 12, replacing outgoing dean and athletic director John Marchino, who now works for the Mancos School District Re-6. There were nine candidates for the position, five of whom were interviewed, according to Doreen Jones, finance director with the district.

Superintendent Lis Richard said Schmitt went through a thorough vetting process that included legal consultation, background checks, an interview committee and board approval.

She told parents in a letter dated Sept. 26 that he is “an extraordinary administrator.”

“I promise you that we are aware of anything you may have heard and we stand by him in full support,” Richard wrote in the letter. In an email Wednesday, she reiterated those points, adding that he is “the right person for our secondary dean of students position. His passion, dedication and wisdom are exemplary.”

She encouraged parents who had questions about Schmitt to visit her.

Efforts to reach Dolores School Board President Kay Phelps have not been returned.

Schmitt declined to comment for this article, citing his attorneys’ advisement. According to the indictment, he faces about a dozen criminal charges, including conspiracy to commit a crime and misappropriation of public money. He could face a maximum sentence of 11 years in custody.

The case in question involves two alleged ringleaders – Sean McManus and Jason Schrock – who opened 19 online charter schools and allegedly used them to embezzle $50 million in state funds, according to a statement released by the San Diego District Attorney’s Office.

The 235-page indictment was handed down by a grand jury May 17 after a yearlong investigation by the district attorney’s office. Overall, it lists several criminal counts, including conspiracy, misappropriation of public funds, paying for student information and conflict of interest.

Much of the alleged fraud involved falsifying enrollment counts in order to secure additional state funding, according to the statement released by the San Diego District Attorney’s Office. The indictment charges the defendants with seeking out small school districts and proposing they authorize online charter schools, in order for A3 to earn more public funds in the form of oversight fees.

Additionally, the indictment states, they paid pre-existing athletic programs for enrollment documentation and then enrolled students in a charter school during the summer, collecting about $2,000 per student from the state of California.

Other components of the alleged scheme involved backdating student enrollment information, dually enrolling students from private schools to the charter schools, and transferring students from one school to another, again to collect additional state funding, which is partially determined by average daily attendance.

The indictment alleges that Schmitt was involved in several components of the fraud and accuses him of multiple counts of conspiracy to commit a crime and misappropriation of public money.

On one count, it alleges that he “committed two or more related felonies” related to “the taking and resulted in the loss by another person and entity of more than five hundred thousand dollars.”

His attorney, Eric Beste, working for Barnes & Thornburgh LLP, said he could not comment on much of Schmitt’s case because of the ongoing litigation, but he emphasized that Schmitt was a salaried employee and not an A3 business owner.

“There’s been some comments in the media about people making millions and millions of dollars in this business,” Beste said. “There may be other people who fall into that category, but that’s not Justin.”

He said Schmitt pleaded not guilty.

Schmitt is a product of Dolores High School himself, according to his online bio. After graduating from Fort Lewis College, he served as a teacher and then an administrator in both physical and online schools, according to a motion filed by his attorneys.

He held leadership roles with Mosaica Online Academy, which ran into financial difficulties. Many of the management contracts for Mosaica’s online schools were purchased by Foundation Learning, which retained Schmitt to continue operating some of the schools.

The online schools were eventually renamed “Valiant Academy.” A3 purchased the Valiant schools in California in early 2017, according to the motion.

The San Diego district attorney has charged 11 defendants – some of whom are employees and some of whom are just associates, Beste said.

“Everybody’s under pleas of not guilty,” he said. “No one has admitted anything; no one’s been convicted of anything yet.”

Beste is contesting the allegations and is in conversations with the San Diego District Attorney’s Office, he said. The district attorney’s office is aware of Schmitt’s new post in Dolores and has raised no objections, he added.

Currently, the next proceedings in this case are scheduled at 9:30 a.m. Oct. 30 in the San Diego Superior Court, Central Division, Central Courthouse.

Leadership changes in DoloresThe Dolores School District has experienced a tumultuous few years in terms of leadership changes. In May 2018, Scott Cooper resigned as superintendent of the district to take a job as assistant superintendent of Mesa Valley County School District 51 in Grand Junction.

Phil Kasper assumed the job of interim superintendent a few months later, and Lis Richard, hired in May for the post, began working for the district July 1. Prior to coming to Dolores, Richard served as superintendent in the Creede School District.

In other leadership changes, the district also lost both elementary and secondary principals in recent months. Elementary Principal Gary Livick announced his resignation late February, and Secondary Principal Jen Hufman just a few weeks ago – her last day was Sept. 30.

Richard addressed the recent changes, in particular the resignation of Hufman, in her letter to parents. “We do not plan to put anyone in place as an interim principal,” she wrote. “We currently have staff that can fill in and cover needed areas until we hire a new principal. There have been many interested in the position and we begin interviews the week of October 7.”

She added too that Schmitt has applied for the principal position. “He will be considered in a fair and non biased manner as all of the candidates will,” she wrote.

Former Atascadero High band booster club treasurer to serve jail time for embezzlement

The woman who admitted to embezzling thousands of dollars from the Atascadero High School Band and Pageantry Booster Club was sentenced Wednesday to about six months in jail and three years of probation.

While holding back tears, Sherry Gong told the court, “I feel so sorry.”

San Luis Obispo County Superior Court Judge Jacquelyn Duffy handed down the sentence to Gong while denying the request for the minimum sentence of about 10-30 days in jail and a motion that would reduce the crime from a felony to misdemeanor.

Gong pleaded guilty in August to three charges of embezzlement filed against her.

The criminal complaint alleges she stole a total of $32,554 from the organization on three different occasions between July 2017 and April 2018 while serving as treasurer of the Atascadero High School club.

Gong’s attorney, Guy Galambos, said his client has no criminal history and that she approached the director of the band before police were made aware of the missing funds, but was turned away.

A statement from a booster club member that was read in court Wednesday said, “The embezzlement crime destroyed our financial security.”

The club claims it was unable to offer scholarships due to lack of funds.

“Sherry Gong was trusted… She also betrayed the high school, community,” the statement read, continuing, “Sherry Gong knew what she was doing when she took from the kids.”

After charges were filed against her in July, Gong admitted to taking the money. Galambos said a close family member had begged her for money, saying he needed it as a matter "of life or death." Galambos said before an investigation began, Gong was already raising money from other family members and selling personal jewelry with the intent to pay back the funds.

She is scheduled to begin serving her 180-day sentence Dec. 2.

Gong was also ordered to not volunteer or be employed in a capacity where she has financial responsibilities.

Gong is the wife of San Luis Obispo County Clerk-Recorder Tommy Gong.

Man accused of embezzling $64000 from wrestling clubs in Wyoming

The man acting as treasurer of two local youth wrestling clubs is accused of stealing a total of $64,827 since 2017.

Steven D. Johnson, 44, made his initial appearance on two counts of felony theft Monday afternoon in Circuit Court.

The maximum penalty on each count is 10 years in prison and a $10,000 fine.

Johnson became treasurer of the Gillette Wrestling Club in October 2017 and of the Camel Kids Wrestling Club in June 2018.

He was part of the latter club’s organization for almost 13 years and been on the board for most of that time, according to an affidavit of probable cause filed in the case.

In late August, the Camel Kids Wrestling Club had gathered evidence about Johnson’s alleged use of the club’s debit card for personal use, many of the charges made on Amazon and at Walmart, but not for club purposes. The board confronted Johnson about the charges and he allegedly admitted to spending the club’s money for his personal use, according to the affidavit.

He agreed to pay back the $11,000 that the club thought at that time that was missing.

But board members decided to report the embezzlement to police instead after learning that he also was allegedly embezzling from the Gillette Wrestling Club, according to the affidavit.

The Gillette Wrestling Club discovered Aug. 31 that its account at Wells Fargo Bank was closed because it was overdrawn. Board members also learned he’d drained a different account at Campco Federal Credit Union and had opened a new account at Pinnacle Bank with a $4,000 donation to the account and it is in arrears, according to the affidavit of probable cause.

She began to investigate and found some fraudulent charges that totaled $11,170 on the club’s debit card in August.

But as the club continued to investigate, it found more money missing, according to the affidavit. The money generated from two raffles and registration fees also came up short. The total deposited should have been at a minimum $63,180, but only $47,000 had been deposited — a difference the club attributed to cash payments.

Between the debit card payments and the short deposits, the club figured it lost $26,650.

For the Gillette Wrestling Club, the board found $30,167 worth of fraudulent withdrawals from two bank accounts, which Sifuentes said were spent on a variety of things from contact lenses to city utility bills to Amazon orders to hotel rooms at tournaments.

It also lost the $4,000 deposit at Pinnacle plus was at least $1,937 in the red on it. It also found another $2,073 that hadn’t been deposited from a recent fundraising event.

The two clubs vowed to continue to operate even though it may take more donations to make that happen.

“We teach these kids that sometimes they may be down, but never out, and the same is true for our entire program,” Johnson wrote.

Lico Sifuentes, president of the Gillette Wrestling Club, said they were shocked to find the account empty at Wells Fargo.

“(Board member) Denise (Igo) was in tears and I was almost in tears,” he said. “I don’t know how somebody could do this.”

Johnson would come to board meetings with information about the accounts, but “we never made him prove anything” — something in hindsight he said every board should do. The bills were paid, so they had no reason to believe that the money wasn’t where he said it would be, Sifuentes added.

He now believes that all nonprofit clubs should ask to see the actual bank statements, that each should demand that two people from the club should be listed on banking accounts and that banks shouldn’t be allowed to open a non-profit account without at least two people from the club signing off on it.

The Gillette Wrestling Club said that it has made changes to its organization to ensure that it doesn’t happen again, it said in a letter.

The group hosts the annual Pat Weede Memorial Wrestling Tournament, offers local scholarships for wrestlers from both Campbell County and Thunder Basin high schools and covers travel expenses for local wrestlers competing at the national level.

The money that Johnson is accused of taking came from donations and fundraisers, not the Campbell County Public Recreation District Rec Mill grant, which is still intact, the club said in a letter.

“We are saddened by this deceit,” the club said. “However, we are going to move forward to get to the bottom of the financial issues, in addition to making the needed preparations for a successful Pat Weede Memorial Tournament in December 2019.

“Gillette Wrestling and Camel Kids have been helping wrestlers in this community for many years. And, with the help of the multitude of wonderful people surrounding us, the good work of these organizations will continue for the youth of our community,” the board said.

Mike Johnson, Camel Kids chairman, said in a letter that to discover the money missing “was particularly shocking” because it was allegedly taken “by a person within both the organizations who was in a position of great trust. It is this that hurts the most.”

“Despite this huge setback, we will not allow any criminal act to defeat our spirit or the continuation of either Camel Kids or the great work of Gillette Wrestling,” wrote Johnson, who is not related to Steven.

The Camel Kids Club believes that the thefts began about a week after Johnson was elected treasurer. A board member was alerted to problems in May when a Casper hotel called to report that it hadn’t received payment for rooms that were reserved for an upcoming event. Johnson said he would take care of it. But it still hadn’t been paid a few days later when the board member got a second call from the hotel, according to the affidavit.

Grand jury indicts former Lafayette High School principal on charge of felony embezzlement in Virginia

Four months after Kimberly Hollemon resigned as principal of Lafayette High School, a grand jury in the Williamsburg-James City County Circuit Court indicted her on a single count of felony embezzlement.

Hollemon, 49 of Providence Forge, was initially placed on administrative leave by the Williamsburg-James City County School Division in April and she resigned May 2. The grand jury handed down the indictment on Sept. 18, according to Williamsburg-James City County Circuit Court filings.

James City County Police Department spokeswoman Stephanie Williams said a person at the school division called police about suspected embezzlement.The person alleged Hollemon used the school division’s credit card to make purchases, Williams said. Investigators discovered Hollemon used the card repeatedly to purchase items for her personal use.Hollemon turned herself into the James City County Police Department on Sept. 24 around 4:15 p.m. after the police department had a warrant for her arrest issued on Sept. 20, according to the filings.Hollemon was transported to the Virginia Peninsula Regional Jail and released on a $1,000 unsecured bond due to her “ample ties to this community," according to the bond order.When reached for comment, Hollemon said “You can contact my attorney,” before she ended the phone call.Hollemon’s attorney Travis Williams of Chesterfield said he intended to enter a not guilty plea on her behalf, and that she was stunned by the accusations against her.

“My client is a lifelong educator with a pristine background, who has always put the kids first and always worked to help them,” Williams said. “She was shocked when these allegations came out, and we will vigorously fight them because my client would never violate that position of trust.”

Williams also said that Hollemon wanted to thank some members of the community for words of support she had received since April, including from parents and students.

According to Williamsburg-James City County School Division spokeswoman Eileen Cox, a principal can make purchases at his or her discretion. The school’s bookkeeper does not sign off on those purchases and they are submitted directly to the finance department. As the audit of Hollemon’s spending began, the school division instituted a new policy where purchases had to be signed off on by an assistant superintendent.

The purchases, item descriptions and vendors listed in the spending reports did not appear to be out of line with what is normally used in the school, Cox said Thursday. “It was after staff members at the school raised attention to irregularities, that what was being purchased was not being used at the school, that we began our investigation."

“This is not a case of (the finance department) knowing about it for months.”

Cox said while the allegations against Hollemon were reported to the police department in April, she was unsure of when the school division became aware of the allegations.

Hollemon had served as principal of Lafayette since May 2018, having first served as the school’s interim principal starting in August 2017, after the former principal Anita Swinton, resigned to take a position in W-JCC’s central office.

After her resignation, Hollemon was hired to work at John Tyler Community College about two weeks ago, according to the court filings.

If convicted, Hollemon faces as much as 20 years in prison and $2,500 in fines, according to the Virginia Code.

Calhoun County Church and Catholic School Bookkeeper Accused of Embezzlement in Alabama

According to Information in a news release issued this week by the U.S. Attorney’s Office in Birmingham – the bookkeeper for a Calhoun County church and Catholic school is facing up to 20 years in federal prison – and a quarter-of-a-million dollar fine – after being accused of embezzlement.

Angela Cheatwood, age 41, has been charged with wire fraud after she allegedly took nearly $450,000, including stealing from school fundraisers and donations,

She is the bookkeeper for Sacred Heart of Jesus Catholic Church and Sacred Heart School in Anniston.

Prosecutors claim Cheatwood wrote unauthorized checks to her personal account from the church’s bank account and stole cash from school fundraisers and donations meant for the school and deposited that money into her bank account.

The U.S. Secret Service assisted the Birmingham U.S. Attorney’s Office on the case.

The statement did not list a court date.

Ex-school administrator charged with embezzlement

The former administrator of Cimarron Montessori School was charged Monday with three felony counts of embezzlement accusing her of taking more than $25,000 from the school over a six-year period, records show.

Deborah Cribley, 45, appeared Tuesday morning before Special District Judge Brian Lovell with her attorney Steve Cameron, online court records show. Cribley posted a $1,000 bond and will appear Thursday for arraignment of the charges.

One of the charges accuses Cribley of taking more than $25,000 from the school between January 2012 and March 2018. She faces up to 10 years in prison, a fine of up to $10,000 and restitution on that embezzlement charge. She faces up to five years in prison, a fine of up to $5,000 and restitution on the other two charges, accusing her of taking more than $1,000 from one of the school's bank accounts and the school's Walmart credit card, records show.

On April 17, 2018, police met with Deborah Wilczek and Tara Ramos, two members of the board of trustees for Cimarron Montessori School.

Wilczek told Detective Brad Pritchett in November 2017 the school was in a financial bind, according to an affidavit filed in the case. She said she for the first time the school may not be able to make payroll. She said the board began working with Cribley to go over the financials.

Wilczek said in February 2018, the board found several discrepancies in the financials that were not explainable, according to the affidavit. She said at a March 2018 board meeting members asked Cribley for the school's bank statements to see what was happening.

Obvious discrepancies

On April 2, 2018, the board met to review the financial documents from August 2017 to March 2018. Wilczek said there were obvious discrepancies, according to the affidavit. Wilczek said the board met with Cribley and told her she could resign or they would terminate her.

Wilczek told police since April 2, 2018, the board began to look into the financials for Cimarron Montessori. She said when the statement for the school's Walmart card arrived, they noticed charges for makeup, self tanner and other items purchased that were not for the school, according to the affidavit. Ramos said while reviewing the school's Central National Bank and Alva State Bank & Trust documents, they found where Cribley was paying her personal Dillard's credit card with school funds, according to the affidavit.

Ramos said when they confronted Cribley about this, she claimed in her role as an administrator one of her jobs was to buy future silent auction items, according to the affidavit. Ramos said Cribley said she was buying the items on clearance. Wilczek and Ramos told police the only documentation they had ever seen as a board in relation to finances had come from a QuickBooks program.

The women told police there was only one debit card for the CNB account and only one Walmart card, according to the affidavit. They said Cribley was the only one to have those cards.

On April 19, 2018, Pritchett met with Cribley, her husband, Kenny Cribley, and Cameron, her attorney, records show.

Pritchett asked Cribley to tell him about her position as administrator and why she left the school, according to the affidavit. Cribley said at a March 26, 2018, board meeting it was discussed that a teacher might have to be laid off because of the school's financial situation. She said the board requested she get all of the financial documents together so the board could review them. She said she gave the board the documents March 30, 2018.

Cribley said a meeting was held April 2, 2018, and the board asked her about a couple of transactions she did not have receipts for, according to the affidavit. Cribley said after the meeting she was given the option to resign from her position or she would be fired. Cribley said she opted to resign.

When asked by Pritchett, Cribley confirmed she was responsible for Cimarron Montessori's bank accounts, according to the affidavit. Pritchett asked if anyone assisted her with those duties. Cribley said the only time anyone else was involved was when a teacher would buy something for the school on their personal bank account, then she would reimburse the teacher. She said she was the only one with control over the school's bank accounts.

Cribley said the school has three accounts: an operating account through CNB, a fundraising account through Alva State Bank and a money market account at Security National Bank, according to the affidavit. Cribley said there was a debit card and credit card kept in a lock box in her office. When asked who had access to the cards, Cribley said, "Just myself."

Pritchett told Cribley one of the accusations from the board was she was misusing the school's debit and credit card. He asked if she had ever misused or purchased any personal items for herself on either card, according to the affidavit. Cribley said as far as misuse of the cards, she replied, "No, sir." He asked Cribley if she ever purchased personal items with the cards. Cribley said if she purchased any personal items with the cards, she would reimburse the school by making a deposit in the school's bank account.

Cribley said the school board allowed her to make purchases of personal items on the school's debit and credit card as long as she reimbursed the school for the charges, according to the affidavit. Pritchett asked Cribley if she ever purchased personal items on the school's cards. She said she was sure there times she had done this, but she could not recall.

Cribley said she was confronted by the board about using the cards for personal use, according to the affidavit. She said she told the board she could go through all the receipts, but the board would not give her access to them.

Pritchett told Cribley he had some Cimarron Montessori Walmart credit card statements he wanted to go over with her. He showed Cribley a charge for Rotel Diced Tomatoes, and Cribley said it might have been purchased for a fundraiser, according to the affidavit. He showed her charges for barbecue pizza, Totino's Pizza, Little Smokies and grilled chicken breast. Cribley said those items might have been food they were keeping at the refrigerator at the school.

When shown a charge for Axe body spray, Cribley said, "I have no idea," according to the affidavit. She was shown a charge for diced onions and cut okra, and Cribley said it was for the lunch program. When shown a charge to tanning lotion, Cribley again said, "I have no idea."

Pritchett showed Cribley a charge for an Apple TV for $159. Cribley said that was probably a personal purchase, according to the affidavit.

Pritchett asked Cribley how often she would use the Walmart card for personal use, according to the affidavit. Cribley said she kept track of her personal purchases. She said when the Walmart bill would come in, she would write a personal check for her part of the bill. She said if she did not send a personal check with the bill, she would write one to the school.

Cameron asked Cribley if this was a common practice since she had been employed with the school, and she stated, "Yeah," according to the affidavit. Pritchett asked Cribley if the school was aware she was using the Walmart card for her personal use, and Cribley said they should have been.

Fraudulent charges

During the investigation, Pritchett spoke with Kay Chatterji, who served as vice president and president of the Cimarron Montessori board of directors.

He asked Chatterji if it has ever been approved that the school administrator could use school funds for personal purchases, according to the affidavit. Chatterji said "no."

He told Chatterji when he spoke with Cribley, she said the board knew she was making personal purchases with school funds, according to the affidavit. He also told Chatterji that Cribley said the board allowed her to do this as long as she paid the money back by the end of the fiscal year. Chatterji said she has never heard of anything like that.

Pritchett reviewed the charges on the Walmart credit card using statements from Nov. 5, 2015, to March 3, 2018, according to the affidavit. The total amount of fraudulent charges on the Walmart card is $6,407.55.

Pritchett told Cribley he wanted to go over the school’s CNB account, providing her with a statement for January 2018, according to the affidavit. The first charge was to Chick-Fil-A for $42.12.

Cribley said she keeps a general ledger of transactions, and she advised the board of this. Pritchett asked Cribley if the board knew she was using the debit card to make personal purchases, and she said, “I don’t think they did.” Cribley said past boards knew she was doing this. She said her reimbursements for using the debit and credit cards were due by the end of the fiscal year, which was in July.

Pritchett asked Cribley how long she had been using the school’s debit and credit cards, according to the affidavit. She said is depended and said she had spent more on personal items in 2018 than she had in the past.

Pritchett asked Cribley if she ever used the Alva State Bank account for personal use. Cribley said she would have to go back through and look, according to the affidavit. Pritchett asked Cribley if she would be able to provide documentation showing the reimbursements. Cribley said, “Hopefully, I can.”

She said when she reimbursed the school she would put the money into the Alva State Bank account, according to the affidavit. Pritchett asked if the reimbursement would be a personal check from her and Cribley said, “Right.”

When asked how many personal checks she’d written the school since 2009, Cribley said she had no idea.

Pritchett asked Cribley if she ever made any personal credit card payments with school funds, and she said she had, according to the affidavit. Cribley said she had made payments on her Dillard’s credit card, JCPenney credit card and Old Navy credit card. She said the payments were from using her personal credit cards to purchase silent auction items for the school.

Review of accounts

Pritchett reviewed the SNB personal checking account for Cribley and her husband for checks written to Cimarron Montessori that were relevant to the investigation, according to the affidavit. There were five checks written listed in the affidavit.

• On Aug. 8, 2010, Cribley wrote a check to Cimarron Montessori in the amount of $3,350. The memo line of the check states, “Cash/temp loan/full repayment.”

• On Jan. 21, 2011, Cribley wrote a check to “Cash” in the amount of $960. The memo of the check states, “School reimbursement-Alva.”

• On July 20, 2011, Cribley wrote a check to Cimarron Montessori School in the amount of $700. The memo of the check states, “Repayment/deposit.”

• On July 20, 2011, Cribley wrote a check for “Cash Withdrawal” in the amount of $200. The memo states, “CMS petty cash repayment.”

• On Dec. 22, 2011, Cribley wrote a check to “Cash” in the amount of $235. The memo of the check states, “Silent Auction/Petty Cash.”

Pritchett reviewed the Cimarron Montessori School CNB account from Jan. 1, 2018, to March 31, 2018, according to the affidavit. The amount of unauthorized charges made by Cribley from the account in that time is $3,782.91.

A review of the account between Jan. 1 and Dec. 31, 2017, found Cribley wrote made a total of $20,093 charges to the account, according to the affidavit. There were also checks in the amount of $350 to JCP/Synchrony Bank and $288.95 to Uptown Florist written by Cribley from the account.

Pritchett also found a printed email for Life Touch School portraits, according to the affidavit. The email was a receipt for an order placed Oct. 11, 2017, by Cribley in the amount of $77 using the Cimarron Montessori debit card, according to the affidavit. Another email was printed out for Jostens.com for the purchase of 25 cards and 25 envelope seals. The email was a receipt for an order placed March 7, 2017, by Cribley in the amount of $62.32 using the school's debit card. The order shows the recipient as Karson Cribley, Deborah's child.

Pritchett also found a receipt for a yearbook for Cribley's child, according to the affidavit. The $78 purchase was made March 6, 2017, using the school's debit card.

Pritchett reviewed the records for the school's CNB account and found the following unauthorized charges for each year made by Cribley: 2016: $23,556.40; 2015: $21,221.92; 2014: $24,030.64; 2013: $15,536.58; and 2012: $5,436.86.

A review of the school's Alva State Bank & Trust account from 2012 to 2018, found Cribley wrote unauthorized checks totaling $19,145.45, according to the affidavit.