A former business manager at the University of Kentucky admitted Friday that he stole equipment, and he agreed to pay nearly $300,000 in restitution.
Steven Ellis pleaded guilty to one count of embezzlement. The top sentence on the charge is 10 years in prison, although Ellis’ sentence will likely be considerably lower under federal guidelines.
Ellis was a business manager in the physics and astronomy department, and his duties included ordering equipment. He took surplus equipment that belonged to UK and sold it on eBay, court records say.
For instance, UK alleged in a report that Ellis used the school’s money to buy hundreds of multimeters, which measure electric currents, and sold more than 300 on his eBay account for $49,856.
Ellis’ plea involved only acts between July 1, 2014, and June 30, 2015, because the federal law covers one-year periods, but Ellis stipulated that he committed offenses in other years as well, according to his plea agreement.
A court document said the loss to UK was $137,662. UK said in a report last year that Ellis also misappropriated $87,000 in royalty revenue.
The royalties were from lab manuals Ellis had written and published through an outside vendor. UK alleged that Ellis had made his students buy his manuals and therefore was required to donate the royalties to the school, but that Ellis kept the money.
Ellis agreed to pay $299,603 in restitution to UK to cover the cost of the stolen equipment, the royalties and an audit, his plea said.
UK said its police and auditors began investigating Ellis after another employee reported suspicions about him. The university fired Ellis in September 2015 and turned over the results of its investigation to federal authorities.
The report from UK said Ellis started working there in July 1995 as an instructional lab specialist and later held a variety of jobs, including academic coordinator and information technology manager.
He also taught undergraduate labs, supervised teaching assistants, and stocked and maintained the equipment inventory for the physics labs, according to the report.
Ellis’ attorney, Fred E. Peters, said Ellis is remorseful for his actions and that he and his family will make full restitution before he is sentenced.
“This is a sad ending for a man who had a very good military and academic career up till now,” Peters said.
U.S. District Judge Danny C Reeves scheduled sentencing for May 19.
Showing posts with label Kentucky. Show all posts
Showing posts with label Kentucky. Show all posts
Friday, February 10, 2017
Sunday, February 5, 2017
Former Bowling Green High School teacher indicted for theft
A former Bowling Green High School teacher has been indicted by the Warren County Grand Jury on a charge of theft by unlawful taking of property valued at over $10,000.
Bowling Green City Schools say the allegations against Wanda Faulkner are related to her work with a statewide professional organization, not as an employee of the school system.
Faulkner worked in the business department of BGHS from the Fall of 1999 until she voluntarily resigned from her job on December 16, 2016.
Bowling Green Schools Superintendent Gary Fields says upon learning about the situation, he has and will continue to work with law enforcement throughout the investigation.
Parents who have children in the Bowling Green City School district have been notified of the issue, but anyone with questions or concerns can contact Superintendent Fields by email at gary.fields@bgreen.kyschools.us or by phone at 270-746-2200.
Friday, January 1, 2016
Ex-Allen church secretary admits embezzlement in Kentucky
A former secretary at Scottsville Baptist Church pleaded guilty to embezzling church funds in federal court Monday.
Patricia Barlow, 49, of Scottsville, entered guilty pleas in U.S. District Court on three counts of wire fraud.
As part of a plea agreement subject to approval by U.S. District Judge Greg Stivers, Barlow would pay $274,846 in restitution.
The U.S. Attorney's Office for the Western District of Kentucky charged Barlow with the crimes in an information.
Barlow was accused of making "unauthorized transfers to pay for personal expenses using Scottsville Baptist Church funds, resulting in a total loss of over $270,000," according to court records.
The fraudulent wire transfers documented in the information against Barlow occurred between Jan. 7, 2011, and Jan. 18.
Shortly after Barlow was charged this month, Scottsville Baptist Church released a statement that said a bank employee noticed an anomaly with the church's credit card account in March and notified a branch manager.
Further investigation indicated Barlow used the credit card for personal purchases.
"When confronted on March 4 ... with the evidence, Mrs. Barlow's only statement was, 'I am not going to deny it,' " the statement from the church read. "From that moment, Mrs. Barlow's employment was terminated."
The three wire transfers specifically listed in the federal information totaled $2,337.29, but Assistant U.S. Attorney Daniel Kinnicutt said the government would have proved losses to the church totaling $274,846 had the case gone to trial.
In court Monday, Kinnicutt said that, as the church secretary, Barlow maintained the church's financial records and paid bills, but had no oversight while performing those duties.
Each count of wire fraud is punishable by up to 20 years in prison, meaning that Barlow could face up to 60 years in prison altogether.
Her plea agreement, however, recommends significantly less punishment based on federal sentencing guidelines that take into account the nature of the offenses and the defendant's criminal history.
Barlow's sentence will be determined at a later hearing by Stivers.
Patricia Barlow, 49, of Scottsville, entered guilty pleas in U.S. District Court on three counts of wire fraud.
As part of a plea agreement subject to approval by U.S. District Judge Greg Stivers, Barlow would pay $274,846 in restitution.
The U.S. Attorney's Office for the Western District of Kentucky charged Barlow with the crimes in an information.
Barlow was accused of making "unauthorized transfers to pay for personal expenses using Scottsville Baptist Church funds, resulting in a total loss of over $270,000," according to court records.
The fraudulent wire transfers documented in the information against Barlow occurred between Jan. 7, 2011, and Jan. 18.
Shortly after Barlow was charged this month, Scottsville Baptist Church released a statement that said a bank employee noticed an anomaly with the church's credit card account in March and notified a branch manager.
Further investigation indicated Barlow used the credit card for personal purchases.
"When confronted on March 4 ... with the evidence, Mrs. Barlow's only statement was, 'I am not going to deny it,' " the statement from the church read. "From that moment, Mrs. Barlow's employment was terminated."
The three wire transfers specifically listed in the federal information totaled $2,337.29, but Assistant U.S. Attorney Daniel Kinnicutt said the government would have proved losses to the church totaling $274,846 had the case gone to trial.
In court Monday, Kinnicutt said that, as the church secretary, Barlow maintained the church's financial records and paid bills, but had no oversight while performing those duties.
Each count of wire fraud is punishable by up to 20 years in prison, meaning that Barlow could face up to 60 years in prison altogether.
Her plea agreement, however, recommends significantly less punishment based on federal sentencing guidelines that take into account the nature of the offenses and the defendant's criminal history.
Barlow's sentence will be determined at a later hearing by Stivers.
Friday, September 19, 2014
Federal indictment for embezzlement returned against ex-church bookkeeper
The former bookkeeper of an Archdiocese of Louisville parish has been charged with embezzling funds.
A federal grand jury returned an indictment against Tammy Goodlett, 47, of Louisville. According to the U.S. Attorney's Office for the Western District of Kentucky, Goodlett embezzled $83,191 between Aug. 2010 and Aug. 2013 by means of wire fraud while working as the bookkeeper for St. Gabriel the Archangel Church and School.
The indictment says Goodlett transferred money from St. Gabriel's accounts to her own bank accounts, made unauthorized purchases with a credit card and manipulated records to make unpaid bills appear to have been paid.
In Aug. 2012, federal authorities said Goodlett made an electronic transaction of $4,000 from the St. Gabriel bank account at Fifth Third Bank into her personal account. That transaction involved not only Fifth Third Bank servers located in Kentucky, but Federal Reserve Bank servers in New Jersey.
If convicted, Goodlett could receive a sentence of up to 20 years in prison and a fine of up to $250,000.
Monday, July 28, 2014
University of Louisville gets proactive in embezzlement protection
It was Sept. 2013 when University of Louisville President James Ramsey said he discovered the head of the Department of Family and Geriatric Medicine had stolen more than $2 million from the school.
Perry Chad Vaughan is accused of writing checks to himself from several medical practices linked to the school. Vaughn was caught when he deposited the money into a non-university account.
"When someone breaks the law, we're going to go after them -- make it public -- and we're going to prosecute, and we've done that," Ramsey said Wednesday.
The Vaughn case prompted an audit filled with 17 recommendations on how to protect the school's finances more effectively.
Recommendations include hiring a new Chief Financial Officer, increased vendor scrutiny and expanding employee training programs. Additionally, the Board of Trustees must approve every new University bank account.
The audit was performed by two independent firms, Strothman & Co. and Dean Dortan Allen Ford PLLC, which conducted more than 100 interviews and visited every University college.
Bill Meyer of Strothman and Co. said, "We believe reviews such as this would have caught some of the earlier frauds committed in this area."
UofL has dealt with at least six cases of employees accused of stealing from the school.
Robert Felner, the former Dean of Education, was sentenced to serve 63 months in prison for stealing a half million dollars.
"We've obviously worked to strengthen the processes and make them stronger to essentially eliminate fraud and thievery," said Bob Hughes, Chairman of U of L's Board of Trustees.
The Board of Trustees Audit Committee agreed to implement all of the audit's findings except one, where the process had already started to address change.
Perry Chad Vaughan is accused of writing checks to himself from several medical practices linked to the school. Vaughn was caught when he deposited the money into a non-university account.
"When someone breaks the law, we're going to go after them -- make it public -- and we're going to prosecute, and we've done that," Ramsey said Wednesday.
The Vaughn case prompted an audit filled with 17 recommendations on how to protect the school's finances more effectively.
Recommendations include hiring a new Chief Financial Officer, increased vendor scrutiny and expanding employee training programs. Additionally, the Board of Trustees must approve every new University bank account.
The audit was performed by two independent firms, Strothman & Co. and Dean Dortan Allen Ford PLLC, which conducted more than 100 interviews and visited every University college.
Bill Meyer of Strothman and Co. said, "We believe reviews such as this would have caught some of the earlier frauds committed in this area."
UofL has dealt with at least six cases of employees accused of stealing from the school.
Robert Felner, the former Dean of Education, was sentenced to serve 63 months in prison for stealing a half million dollars.
"We've obviously worked to strengthen the processes and make them stronger to essentially eliminate fraud and thievery," said Bob Hughes, Chairman of U of L's Board of Trustees.
The Board of Trustees Audit Committee agreed to implement all of the audit's findings except one, where the process had already started to address change.
Thursday, September 12, 2013
University of Louisville hiring outside auditor in wake of embezzlement cases
Following a spate of high-profile cases of embezzlement and misused funds, University of Louisville trustees agreed to take more aggressive steps to safeguard the school’s finances.
The board-approved changes Thursday that include hiring an outside auditor to review all internal audits dating to 2007 and financial policies at the health science campus and to perform other functions.
Since 2008, authorities have alleged that U of L employees have stolen, misspent or mishandled at least $7.6 million at the health science campus, at the law school, in the business school and the athletic department’s ticket office.
“If somebody is determined to steal, it’s very hard to prevent that from happening, but we’re going to put more checks and balances in place,” said Dr. David Dunn, U of L’s vice president of health affairs, who oversees the health science campus where the most recent thefts occurred.
The board’s audit committee approved the plan after meeting in executive session for more than an hour Thursday morning. The full board approved the measure later in the day without discussion.
Federal prosecutors recently alleged that Perry Chadwyck “Chad” Vaughn, executive director of the school’s Department of Family and Geriatric Medicine, stole as much as $2 million.
The allegations arose only after a co-worker raised questions with auditors about how he could afford Carribbean trips and a fleet of luxury cars on a $105,000 salary. The government alleges that he was writing checks to himself from the department and three associated medical practices for which he managed the finances.
John Olash, Vaughn’s lawyer, has said the government is conducting an extensive forensic review of Vaughn's bank records, adding that it could be a while before he is charged.
U of L President James Ramsey noted that most of the checks in the case were written on the medical practice accounts and not on official U of L accounts, making it difficult for the university to catch.
Ramsey said the outside auditor will largely focus on private medical practices associated with U of L but also will look at other areas of the university to ensure questionable spending is being flagged and investigated.
The plan also calls for additional training for those authorized to sign university checks, and it intends to bring all finance operations under a central financial “service center.” Different organizations and departments at U of L now have independent financial management offices.
“We’re going to have them (auditors) look at our bank accounts, we’re going to also begin to move forward as quickly as possible ... to a centralized financial management program,” Ramsey said.
Under the new financial oversight plan, the school will be given authority to look at audited finances of outside organizations with ties to the university and the outside auditor will search banks within 50 miles of Louisville to find all university-related accounts that weren’t authorized by the board of trustees.
Such accounts could be repositories for clinical funds as well as grant funds.
Ramsey said spot audits will be an important part of the new financial oversight system.
“We’re going to use the external firm to help do some surprise audits, which we haven’t had the staff to do before. We’re going to look at the entire university,” he said.
The misappropriation of funds at U of L have come from a variety of sectors.
In July, former Brandeis Law School admissions director Brandon Lee Hamilton was indicted on charges of promising $2.4 million more in law school scholarships than the school had available.
In 2011, former employee Kerry Johnson was charged with stealing more than $100,000 from the school’s ticket office.
That same year, Alisha Ward, who worked in the College of Business, was charged with stealing $463,636 from the student Equine Riding and Racing Club.
Also that year, dental professor Michael H. Martin was found dead in his office of an apparent suicide after he was interviewed by university police for allegedly misusing a university credit card for a $353,875 National Institutes of Health grant that he directed.
And in 2008, former education school Dean Robert Felner was charged with fraudulently obtaining $2.3 million in grant money.
Ramsey said the school believes its old policies and procedures were sound but said the changes will help “reduce the number of places where human or systemic breakdowns might occur.
The board-approved changes Thursday that include hiring an outside auditor to review all internal audits dating to 2007 and financial policies at the health science campus and to perform other functions.
Since 2008, authorities have alleged that U of L employees have stolen, misspent or mishandled at least $7.6 million at the health science campus, at the law school, in the business school and the athletic department’s ticket office.
“If somebody is determined to steal, it’s very hard to prevent that from happening, but we’re going to put more checks and balances in place,” said Dr. David Dunn, U of L’s vice president of health affairs, who oversees the health science campus where the most recent thefts occurred.
The board’s audit committee approved the plan after meeting in executive session for more than an hour Thursday morning. The full board approved the measure later in the day without discussion.
Federal prosecutors recently alleged that Perry Chadwyck “Chad” Vaughn, executive director of the school’s Department of Family and Geriatric Medicine, stole as much as $2 million.
The allegations arose only after a co-worker raised questions with auditors about how he could afford Carribbean trips and a fleet of luxury cars on a $105,000 salary. The government alleges that he was writing checks to himself from the department and three associated medical practices for which he managed the finances.
John Olash, Vaughn’s lawyer, has said the government is conducting an extensive forensic review of Vaughn's bank records, adding that it could be a while before he is charged.
U of L President James Ramsey noted that most of the checks in the case were written on the medical practice accounts and not on official U of L accounts, making it difficult for the university to catch.
Ramsey said the outside auditor will largely focus on private medical practices associated with U of L but also will look at other areas of the university to ensure questionable spending is being flagged and investigated.
The plan also calls for additional training for those authorized to sign university checks, and it intends to bring all finance operations under a central financial “service center.” Different organizations and departments at U of L now have independent financial management offices.
“We’re going to have them (auditors) look at our bank accounts, we’re going to also begin to move forward as quickly as possible ... to a centralized financial management program,” Ramsey said.
Under the new financial oversight plan, the school will be given authority to look at audited finances of outside organizations with ties to the university and the outside auditor will search banks within 50 miles of Louisville to find all university-related accounts that weren’t authorized by the board of trustees.
Such accounts could be repositories for clinical funds as well as grant funds.
Ramsey said spot audits will be an important part of the new financial oversight system.
“We’re going to use the external firm to help do some surprise audits, which we haven’t had the staff to do before. We’re going to look at the entire university,” he said.
The misappropriation of funds at U of L have come from a variety of sectors.
In July, former Brandeis Law School admissions director Brandon Lee Hamilton was indicted on charges of promising $2.4 million more in law school scholarships than the school had available.
In 2011, former employee Kerry Johnson was charged with stealing more than $100,000 from the school’s ticket office.
That same year, Alisha Ward, who worked in the College of Business, was charged with stealing $463,636 from the student Equine Riding and Racing Club.
Also that year, dental professor Michael H. Martin was found dead in his office of an apparent suicide after he was interviewed by university police for allegedly misusing a university credit card for a $353,875 National Institutes of Health grant that he directed.
And in 2008, former education school Dean Robert Felner was charged with fraudulently obtaining $2.3 million in grant money.
Ramsey said the school believes its old policies and procedures were sound but said the changes will help “reduce the number of places where human or systemic breakdowns might occur.
Monday, September 9, 2013
Hearing in UofL embezzlement case delayed
An initial hearing for Perry Chadwyck Vaughn, who was accused by federal prosecutors of embezzling more than $700,000 from the University of Louisville, was delayed Monday
The government and Vaughn’s attorney, John Olash, agreed to continue a hearing set in U.S. District Court Monday on the prosecution’s motion for a permanent order freezing Vaughn’s assets. A temporary order remains in effect.
Vaughn, 35, has not been charged criminally, but prosecutors Joseph Ansari and Bryan Calhoun allege in the complaint that Vaughn has admitted forging 25 checks to himself over the past 16 months totaling $703,936 from Department of Family and Geriatric Medicine and three affiliated medical practices whose finances he supervised.
They say Vaughn, an accountant, also admitted that his fraud stretched back as far as 2007, resulting in losses the government says will exceed $2 million, according to court records
The university said last week that Vaughn has been fired from the department, where he was executive director.
The government and Vaughn’s attorney, John Olash, agreed to continue a hearing set in U.S. District Court Monday on the prosecution’s motion for a permanent order freezing Vaughn’s assets. A temporary order remains in effect.
Vaughn, 35, has not been charged criminally, but prosecutors Joseph Ansari and Bryan Calhoun allege in the complaint that Vaughn has admitted forging 25 checks to himself over the past 16 months totaling $703,936 from Department of Family and Geriatric Medicine and three affiliated medical practices whose finances he supervised.
They say Vaughn, an accountant, also admitted that his fraud stretched back as far as 2007, resulting in losses the government says will exceed $2 million, according to court records
The university said last week that Vaughn has been fired from the department, where he was executive director.
Friday, September 6, 2013
UofL president says embezzlement caught by school employees in Kentucky
Co-workers helped catch a man who investigators accuse of stealing more than $2 million from the University of Louisville, the school's president said Thursday.
University administrators fired Perry "Chad" Vaughn after an internal audit found he had stolen money during his time as executive director of the Department of Family and Geriatric Medicine.
Vaughn drove luxury cars, including a Corvette, Mercedes and Range Rover, and went on trips to the Caribbean and Las Vegas, according to an affidavit filed in federal court. He wrote checks using university money to pay credit card bills and child support, investigators said.
In the court filing, investigators said Vaughn admitted he'd been stealing money since 2007. A co-worker in October 2012 emailed school administrators questioning how Vaughn could have such a lavish lifestyle on a university employee's salary.
"We've got strong systems of internal controls, it's just that they weren't being followed," said Dr. James Ramsey, president of the University of Louisville. "We'll let the investigation play out and see what other changes need to be made."
A federal judge is scheduled to decide Monday whether to freeze Vaughn's assets. Stephanie Collins, a spokeswoman for the U.S. Attorney's Office, said investigators haven't charged Vaughn criminally yet because the investigation is ongoing.
Ramsey said supervisors need to perform checks on employees as part of the internal control methods. He said that had been a "problem in the past," during other similar incidents.
In this case, Ramsey credited the co-worker who questioned Vaughn's actions and the resulting audit with helping to solve the case.
"I feel very good about that, that the university process worked quite well," Ramsey said.
University administrators fired Perry "Chad" Vaughn after an internal audit found he had stolen money during his time as executive director of the Department of Family and Geriatric Medicine.
Vaughn drove luxury cars, including a Corvette, Mercedes and Range Rover, and went on trips to the Caribbean and Las Vegas, according to an affidavit filed in federal court. He wrote checks using university money to pay credit card bills and child support, investigators said.
In the court filing, investigators said Vaughn admitted he'd been stealing money since 2007. A co-worker in October 2012 emailed school administrators questioning how Vaughn could have such a lavish lifestyle on a university employee's salary.
"We've got strong systems of internal controls, it's just that they weren't being followed," said Dr. James Ramsey, president of the University of Louisville. "We'll let the investigation play out and see what other changes need to be made."
A federal judge is scheduled to decide Monday whether to freeze Vaughn's assets. Stephanie Collins, a spokeswoman for the U.S. Attorney's Office, said investigators haven't charged Vaughn criminally yet because the investigation is ongoing.
Ramsey said supervisors need to perform checks on employees as part of the internal control methods. He said that had been a "problem in the past," during other similar incidents.
In this case, Ramsey credited the co-worker who questioned Vaughn's actions and the resulting audit with helping to solve the case.
"I feel very good about that, that the university process worked quite well," Ramsey said.
Thursday, June 20, 2013
Danville, Kentucky church lawsuit aims to stop power struggle
Church of God of America Inc. is suing a group that originally filed a lawsuit claiming to represent it.
The most recent lawsuit, filed June 11 in Boyle Circuit Court, accuses a group of disgruntled members of tarnishing the name and reputation of the Danville-headquartered church and its leader, Bishop and President Timothy Napier.
The complaint alleges the group, including two men who once served as pastors, published false and libelous statements without church authority last year.
Danville attorney Bill Erwin filed the suit on the church’s behalf, seeking both compensatory and punitive damages. Erwin also filed for a restraining order on behalf of the church and Napier to stop the defendants from continuing to meet and act on the church’s behalf.
It is the latest salvo in what has become a public and contentous schism in the church. Much of it stems from decisions about how to move forward after the church building on Martin Luther King Boulevard was destroyed by a fire Jan. 31, 2010. Church of God of America Inc., of which Napier is the registered officer with the Kentucky Secretary of State’s Office, eventually collected $918,000 in insurance money.
“What they have done has been harmful to both Bishop Napier and the church as they are trying to recover and build something new in this community,” Erwin said Wednesday.
Earlier this year, William Fay and Eric L. Barnes, both of Somerset, and Barnes’ son, Justin Barnes of Shelbyville, identified themselves as church elders and trustees in a lawsuit filed in Boyle Circuit Court on behalf of themselves and 27 church members.
In court documents, they allege Napier, James Hines, Charles Johnson and Perry Cunningham misappropriated funds for personal use, acted without proper authorization to rebuild the church in Danville, and locked the plaintiffs out of churches in Somerset and Shelbyville.
The plaintiffs in that case asked the court to halt construction on a new $1.5-million Church of God facility under way on Perryville Road and prevent Napier and the other defendants from taking any further actions on behalf of the church.
They also requested access to the Somerset and Shelbyville church buildings, church financial records and repayment for alleged embezzlement.
The Barnses and Fay said they were ordained elders of the church and questioned Napier's status as bishop and president, maintaining he was never properly elected by elders as required by church bylaws. The lawsuit also challenged the legality of Napier's actions over the last two years, most notably the purchase of land for the new church.
In a June 12 ruling on Erwin’s motion to dismiss the case, Circuit Judge Darren Peckler said the group could not file the lawsuit on behalf of the Church of God of America because it had no authority to do so. Erwin, who also represented Napier in the previous lawsuit, had filed a counterclaim asking for the suit to be thrown out with prejudice and for both punitive and compensatory damages.
Erwin filed the motion for a restraining order to stop the defendants in the more recent case from holding meetings in the church’s name. He said the group has continued to meet, including holding a summer revival.
While the primary complainants in the original lawsuit have accused Napier of seizing power by skirting church protocol, Erwin said the Barnses met with Fay at a Corbin restaurant after the fire to name themselves elders.
The new lawsuit names the Barneses, Fay, Charles Johnson Jr., and Perry and Amanda Cunningham as defendants. It says the father and son had no standing in the corporation to act on its behalf, falsified an elders’ report and a Special Team Review Report, and that the accusations contained in those documents and the lawsuit filed against Napier constitute libel.
Erwin also insists the statements about misusing funds were disproven when accountants hired to review the church books said all money has been spent appropriately.
It remains unclear how the group that originally sued will respond, individually or collectively, now that it is being sued by the organization the court recognizes as the Church of God of America.
Neither Erwin's counterclaim, the motion for the restraining order nor the filing of additional counts in the subsequent lawsuit, has received a response. Lebanon attorney Ted Lavit, who represented the Barnses and Fay, could not be reached for comment.
According to Erwin, stopping the meetings and accusations is the most important thing to Napier and others who side with him. He said his clients are not asking for specific damages because the conflict is ongoing and the defendants continue to claim roles in the church and make false accusations.
Erwin likened the case he acknowledged is extremely unique to a person or group of people claiming to speak for a company without permission.
“Coca-Cola would have a fit,” Erwin said. “The fact it is a church doesn’t make its standing as a corporation any different than if it were Coca-Cola. And they are trying to rebuild here in this community.”
Napier, who also owns Kentucky Tours and Travel in Danville, told a reporter in March he appointed Eric and Justin Barnes to serve as pastors of the Somerset and Shelbyville churches, respectively, but later terminated them from their positions.
Erwin said the Barnses and William Fay were the ones not legitimately chosen for their positions, meeting together at a Corbin restaurant to appoint themselves as church elders. Johnson and both Perry and Amanda Cunningham, defendants along with Napier and James L. Hines in the original case, have continued to act without church authority and participate in a smear campaign against Napier and other elders, he said.
Napier has maintained the legal action against him was fueled by "jealousy and envy."
"They do not want to see the vision I have for this community to come to fruition. This is an attack to destroy it. Some of them want to rebuild in Somerset, but this is the town for this church to grow,” Napier said in March.
Erwin believes the defendants are being motivated more by gaining control of the insurance windfall than real concerns about Napier's actions.
"There is a lot of money out there, and they want it for these other parts of the state. But the Church of God of America in Danville burned down in Danville, and they are going to rebuild here in Danville."
The defendants have 20 days from the date the summonses were received to answer the counterclaim and the new lawsuit.
The parties will meet for a hearing on the restraining order July 10.
The most recent lawsuit, filed June 11 in Boyle Circuit Court, accuses a group of disgruntled members of tarnishing the name and reputation of the Danville-headquartered church and its leader, Bishop and President Timothy Napier.
The complaint alleges the group, including two men who once served as pastors, published false and libelous statements without church authority last year.
Danville attorney Bill Erwin filed the suit on the church’s behalf, seeking both compensatory and punitive damages. Erwin also filed for a restraining order on behalf of the church and Napier to stop the defendants from continuing to meet and act on the church’s behalf.
It is the latest salvo in what has become a public and contentous schism in the church. Much of it stems from decisions about how to move forward after the church building on Martin Luther King Boulevard was destroyed by a fire Jan. 31, 2010. Church of God of America Inc., of which Napier is the registered officer with the Kentucky Secretary of State’s Office, eventually collected $918,000 in insurance money.
“What they have done has been harmful to both Bishop Napier and the church as they are trying to recover and build something new in this community,” Erwin said Wednesday.
Earlier this year, William Fay and Eric L. Barnes, both of Somerset, and Barnes’ son, Justin Barnes of Shelbyville, identified themselves as church elders and trustees in a lawsuit filed in Boyle Circuit Court on behalf of themselves and 27 church members.
In court documents, they allege Napier, James Hines, Charles Johnson and Perry Cunningham misappropriated funds for personal use, acted without proper authorization to rebuild the church in Danville, and locked the plaintiffs out of churches in Somerset and Shelbyville.
The plaintiffs in that case asked the court to halt construction on a new $1.5-million Church of God facility under way on Perryville Road and prevent Napier and the other defendants from taking any further actions on behalf of the church.
They also requested access to the Somerset and Shelbyville church buildings, church financial records and repayment for alleged embezzlement.
The Barnses and Fay said they were ordained elders of the church and questioned Napier's status as bishop and president, maintaining he was never properly elected by elders as required by church bylaws. The lawsuit also challenged the legality of Napier's actions over the last two years, most notably the purchase of land for the new church.
In a June 12 ruling on Erwin’s motion to dismiss the case, Circuit Judge Darren Peckler said the group could not file the lawsuit on behalf of the Church of God of America because it had no authority to do so. Erwin, who also represented Napier in the previous lawsuit, had filed a counterclaim asking for the suit to be thrown out with prejudice and for both punitive and compensatory damages.
Erwin filed the motion for a restraining order to stop the defendants in the more recent case from holding meetings in the church’s name. He said the group has continued to meet, including holding a summer revival.
While the primary complainants in the original lawsuit have accused Napier of seizing power by skirting church protocol, Erwin said the Barnses met with Fay at a Corbin restaurant after the fire to name themselves elders.
The new lawsuit names the Barneses, Fay, Charles Johnson Jr., and Perry and Amanda Cunningham as defendants. It says the father and son had no standing in the corporation to act on its behalf, falsified an elders’ report and a Special Team Review Report, and that the accusations contained in those documents and the lawsuit filed against Napier constitute libel.
Erwin also insists the statements about misusing funds were disproven when accountants hired to review the church books said all money has been spent appropriately.
It remains unclear how the group that originally sued will respond, individually or collectively, now that it is being sued by the organization the court recognizes as the Church of God of America.
Neither Erwin's counterclaim, the motion for the restraining order nor the filing of additional counts in the subsequent lawsuit, has received a response. Lebanon attorney Ted Lavit, who represented the Barnses and Fay, could not be reached for comment.
According to Erwin, stopping the meetings and accusations is the most important thing to Napier and others who side with him. He said his clients are not asking for specific damages because the conflict is ongoing and the defendants continue to claim roles in the church and make false accusations.
Erwin likened the case he acknowledged is extremely unique to a person or group of people claiming to speak for a company without permission.
“Coca-Cola would have a fit,” Erwin said. “The fact it is a church doesn’t make its standing as a corporation any different than if it were Coca-Cola. And they are trying to rebuild here in this community.”
Napier, who also owns Kentucky Tours and Travel in Danville, told a reporter in March he appointed Eric and Justin Barnes to serve as pastors of the Somerset and Shelbyville churches, respectively, but later terminated them from their positions.
Erwin said the Barnses and William Fay were the ones not legitimately chosen for their positions, meeting together at a Corbin restaurant to appoint themselves as church elders. Johnson and both Perry and Amanda Cunningham, defendants along with Napier and James L. Hines in the original case, have continued to act without church authority and participate in a smear campaign against Napier and other elders, he said.
Napier has maintained the legal action against him was fueled by "jealousy and envy."
"They do not want to see the vision I have for this community to come to fruition. This is an attack to destroy it. Some of them want to rebuild in Somerset, but this is the town for this church to grow,” Napier said in March.
Erwin believes the defendants are being motivated more by gaining control of the insurance windfall than real concerns about Napier's actions.
"There is a lot of money out there, and they want it for these other parts of the state. But the Church of God of America in Danville burned down in Danville, and they are going to rebuild here in Danville."
The defendants have 20 days from the date the summonses were received to answer the counterclaim and the new lawsuit.
The parties will meet for a hearing on the restraining order July 10.
Sunday, May 26, 2013
Kentucky Woman pleads guilty to theft from local groups, stole from youth teams, school organizations.
A former Perrysburg woman admitted in Wood County Common Pleas Court to stealing more than $110,000 from the bank accounts of school, community, and youth baseball groups and using the money on personal expenses and services.
Kiki Lorann, 36, who now lives in Tiffin, pleaded guilty Friday to four counts of grand theft and three counts of theft. When sentenced July 16 by Judge Robert Pollex, who handled her pleas to the felonies, she faces up to eight years in prison.
Assistant Prosecutor Tom Matuszak said she took the position of volunteer treasurer in six Perrysburg-area groups from 2010 to 2012. He said she had the authority to pay the legitimate expenses of the organizations, but instead misspent money in their accounts on personal items and services.
Two Perrysburg school groups sustained the largest financial loss from Lorann’s embezzlement: Perrysburg Elementary Parents Association lost $48,728, and Toth Parents Club had $43,793 taken from its account.
The other victims and the amount of money stolen are: Perrysburg Sting baseball team, $3,067; Perrysburg Gold travel baseball team, $9,944; Perrysburg Amateur Baseball and Softball Commission, $2,600, and Perrysburg Dirtbag baseball travel team, $1,915.
Mr. Matuszak said the thefts were carried out by Lorann writing checks on accounts held by the groups and purchasing personal goods and services on credit and debit cards. He said she often made interbank transfers of funds to conceal the fraudulent transactions.
The assistant prosecutor said representatives of the groups will be allowed to make victim-impact statements at the woman’s sentencing. He said he will ask Judge Pollex for a sentence that includes Lorann making restitution to the organizations. None of the organizations had representatives at the hearing.
Perrysburg Schools Superintendent Tom Hosler said the crimes committed by Lorann damage the trust of volunteers and parents who unselfishly give their time and money.
“I think that any time there is a theft like this, it really stirs and shakes the core group of people who have worked so hard to improve the quality of education and the experiences the kids have in the schools,” he said.
Mr. Hosler said that after learning about the embezzled funds the school district took steps to work with leaders of school support groups to improve financial accounting and ensure that there are safeguards to discourage theft.
Kiki Lorann, 36, who now lives in Tiffin, pleaded guilty Friday to four counts of grand theft and three counts of theft. When sentenced July 16 by Judge Robert Pollex, who handled her pleas to the felonies, she faces up to eight years in prison.
Assistant Prosecutor Tom Matuszak said she took the position of volunteer treasurer in six Perrysburg-area groups from 2010 to 2012. He said she had the authority to pay the legitimate expenses of the organizations, but instead misspent money in their accounts on personal items and services.
Two Perrysburg school groups sustained the largest financial loss from Lorann’s embezzlement: Perrysburg Elementary Parents Association lost $48,728, and Toth Parents Club had $43,793 taken from its account.
The other victims and the amount of money stolen are: Perrysburg Sting baseball team, $3,067; Perrysburg Gold travel baseball team, $9,944; Perrysburg Amateur Baseball and Softball Commission, $2,600, and Perrysburg Dirtbag baseball travel team, $1,915.
Mr. Matuszak said the thefts were carried out by Lorann writing checks on accounts held by the groups and purchasing personal goods and services on credit and debit cards. He said she often made interbank transfers of funds to conceal the fraudulent transactions.
The assistant prosecutor said representatives of the groups will be allowed to make victim-impact statements at the woman’s sentencing. He said he will ask Judge Pollex for a sentence that includes Lorann making restitution to the organizations. None of the organizations had representatives at the hearing.
Perrysburg Schools Superintendent Tom Hosler said the crimes committed by Lorann damage the trust of volunteers and parents who unselfishly give their time and money.
“I think that any time there is a theft like this, it really stirs and shakes the core group of people who have worked so hard to improve the quality of education and the experiences the kids have in the schools,” he said.
Mr. Hosler said that after learning about the embezzled funds the school district took steps to work with leaders of school support groups to improve financial accounting and ensure that there are safeguards to discourage theft.
Monday, March 11, 2013
After fire, schism in Church of God of America leads to court battle in Kentucky
A battle for control of the Church of God of America Inc. has been underway since the organization’s main worship house and headquarters on Martin Luther King Boulevard in Danville burned to the ground on Jan. 31, 2010, and $918,000 in insurance money was collected.
Now the feud has moved from the church’s pews and meeting halls into the courtroom.
Three Somerset men who identify themselves as church elders and trustees and claim to represent the church itself, along with 27 people identified as church members, have filed a lawsuit in Boyle Circuit Court alleging that Tim Napier, bishop and president of the church, and three others have misappropriated church funds for their own use while acting without proper authority to rebuild the church in Danville and locking the doors of sister churches in Somerset and Shelbyville.
The plaintiffs, represented by Lebanon attorney Ted Lavit, are asking for a court order to stop construction of the new $1.5-million Church of God facility underway on Perryville Road and prevent Napier and the other defendants from taking any further actions on behalf of the church.
The lawsuit also asks that plaintiffs be allowed access to the Somerset and Shelbyville churches, and all church records and financial transactions, and that the church be repaid for “the misappropriation and embezzlement of church funds” by Napier and the others.
Napier, a Danville native and owner of Kentucky Tours and Travel in town, has not yet officially responded to allegations made in the complaint. But during an interview Thursday with his attorney Bill Erwin present, Napier categorically denied any misuse of church funds and said the plaintiffs are pretenders to any authority within the Church of God of America and are trying to sabotage his efforts to rebuild the church in Danville, where it was founded and incorporated in 1919.
“I think a lot of it is jealousy and envy. It’s an attack of good vs. evil,” Napier said. “They do not want to see the vision I have for this community to come to fruition. This is an attack to destroy it. Some of them want to rebuild in Somerset, but this is the town for this church to grow.”
Irwin said he plans to file a motion to dismiss the complaint this week on the grounds that the plaintiffs have no legal standing to make any claims of authority within the church.
“It’s a bizarre case. When we walk into court, I’m going to say I represent the Church of God of America and Ted Lavit is going to say he represents the Church of God in America,” Erwin said. “The difference is, I have documents from the Secretary of State’s office and they have some documents they downloaded from the Internet.”
According to the lawsuit, plaintiffs Eric L. Barnes, his son Justin Barnes and William Fay, all of Somerset, are ordained elders of the church and claim that Napier was never properly elected to the position of president by elders as required by church bylaws. Actions taken by Napier as president are therefore unlawful, including the purchase last year of 14 acres on Perryville Road where the new church is under construction, the complaint contends. Napier lives two houses down from the new church site.
The elders, by majority vote, asked Napier to resign his positions twice in 2012 but he “refused to relinquish his claimed position as bishop and president,” the lawsuit maintains.
Napier said during the interview that he assumed the role of bishop and president of the church in 2006 following the death of his predecessor. “I went through all the services and ceremonies to be officially named bishop and president,” he said. Irwin said Napier is listed as president on the church’s incorporation papers on file in the Secretary of State’s office.
No one questioned Napier’s leadership roles “until all of a sudden the church burns and there is money,” Napier said.
Napier said he appointed Eric Barnes and Justin Barnes to serve as pastors of the Somerset and Shelbyville churches, respectively, but described their relationship with the church over the years as on-again, off-again, and that he has terminated them from those positions. He said he wasn’t sure what connection Fay has to the church, and said that most of the 27 other plaintiffs did not regularly attend services.
According to documents attached to the lawsuit, the three plaintiffs met at a Somerset restaurant on Jan. 9 for a meeting of church elders and were the only three in attendance, after other elders and trustees — including two of Napier’s co-defendants, Charles Johnson and Perry Cunningham — failed to show up.
Now the feud has moved from the church’s pews and meeting halls into the courtroom.
Three Somerset men who identify themselves as church elders and trustees and claim to represent the church itself, along with 27 people identified as church members, have filed a lawsuit in Boyle Circuit Court alleging that Tim Napier, bishop and president of the church, and three others have misappropriated church funds for their own use while acting without proper authority to rebuild the church in Danville and locking the doors of sister churches in Somerset and Shelbyville.
The plaintiffs, represented by Lebanon attorney Ted Lavit, are asking for a court order to stop construction of the new $1.5-million Church of God facility underway on Perryville Road and prevent Napier and the other defendants from taking any further actions on behalf of the church.
The lawsuit also asks that plaintiffs be allowed access to the Somerset and Shelbyville churches, and all church records and financial transactions, and that the church be repaid for “the misappropriation and embezzlement of church funds” by Napier and the others.
Napier, a Danville native and owner of Kentucky Tours and Travel in town, has not yet officially responded to allegations made in the complaint. But during an interview Thursday with his attorney Bill Erwin present, Napier categorically denied any misuse of church funds and said the plaintiffs are pretenders to any authority within the Church of God of America and are trying to sabotage his efforts to rebuild the church in Danville, where it was founded and incorporated in 1919.
“I think a lot of it is jealousy and envy. It’s an attack of good vs. evil,” Napier said. “They do not want to see the vision I have for this community to come to fruition. This is an attack to destroy it. Some of them want to rebuild in Somerset, but this is the town for this church to grow.”
Irwin said he plans to file a motion to dismiss the complaint this week on the grounds that the plaintiffs have no legal standing to make any claims of authority within the church.
“It’s a bizarre case. When we walk into court, I’m going to say I represent the Church of God of America and Ted Lavit is going to say he represents the Church of God in America,” Erwin said. “The difference is, I have documents from the Secretary of State’s office and they have some documents they downloaded from the Internet.”
According to the lawsuit, plaintiffs Eric L. Barnes, his son Justin Barnes and William Fay, all of Somerset, are ordained elders of the church and claim that Napier was never properly elected to the position of president by elders as required by church bylaws. Actions taken by Napier as president are therefore unlawful, including the purchase last year of 14 acres on Perryville Road where the new church is under construction, the complaint contends. Napier lives two houses down from the new church site.
The elders, by majority vote, asked Napier to resign his positions twice in 2012 but he “refused to relinquish his claimed position as bishop and president,” the lawsuit maintains.
Napier said during the interview that he assumed the role of bishop and president of the church in 2006 following the death of his predecessor. “I went through all the services and ceremonies to be officially named bishop and president,” he said. Irwin said Napier is listed as president on the church’s incorporation papers on file in the Secretary of State’s office.
No one questioned Napier’s leadership roles “until all of a sudden the church burns and there is money,” Napier said.
Napier said he appointed Eric Barnes and Justin Barnes to serve as pastors of the Somerset and Shelbyville churches, respectively, but described their relationship with the church over the years as on-again, off-again, and that he has terminated them from those positions. He said he wasn’t sure what connection Fay has to the church, and said that most of the 27 other plaintiffs did not regularly attend services.
According to documents attached to the lawsuit, the three plaintiffs met at a Somerset restaurant on Jan. 9 for a meeting of church elders and were the only three in attendance, after other elders and trustees — including two of Napier’s co-defendants, Charles Johnson and Perry Cunningham — failed to show up.
Saturday, February 2, 2013
Former girl scout troop leader is accused of embezzlement in Kentucky on February 1, 2013
A Floyd County woman is accused of embezzling from a girl scout troop.
The Paintsville Herald reports 26-year-old Megan Willis was arrested for allegedly stealing nearly $2,000 from a girl scout troop while she was troop leader.
The arrest warrant says Willis used the money to buy gas, pay for things on an itunes account, pay for movie rentals, and for things in several other stores
Girl Scouts is a program meant to build character and develop skills, but now one troop has learned a shocking life lesson: people you trust can sometimes let you down.
According to the warrant filed in Johnson County District Court, officials with the Wilderness Road Council of the Girl Scouts say 26-year-old Megan Willis of Prestonsburg stole $1813.08 from the organization while she was serving as a troop leader in Johnson County.
The alleged theft took place between November 1 of 2011 through January 1 of 2012.
The warrant says Willis used the funds to buy gas, pharmaceuticals, download iTunes, and rent DVDs, among other things. It also says she was taken off the Girl Scout account in January 12, but refused to return the money.
Girl Scout Officials could not say the type of account the missing money came from.
Willis was arrested last month. She is charged with theft by unlawful taking. Her arraignment is set for February 11.
Officials at the Johnson County Circuit Clerk’s Office say Willis is out on bond under the condition that she has no contact with the Girl Scouts.
Girl Scouts is a program meant to build character and develop skills, but now one troop has learned a shocking life lesson: people you trust can sometimes let you down.
According to the warrant filed in Johnson County District Court, officials with the Wilderness Road Council of the Girl Scouts say 26-year-old Megan Willis of Prestonsburg stole $1813.08 from the organization while she was serving as a troop leader in Johnson County.
The alleged theft took place between November 1 of 2011 through January 1 of 2012.
The warrant says Willis used the funds to buy gas, pharmaceuticals, download iTunes, and rent DVDs, among other things. It also says she was taken off the Girl Scout account in January 12, but refused to return the money.
Girl Scout Officials could not say the type of account the missing money came from.
Willis was arrested last month. She is charged with theft by unlawful taking. Her arraignment is set for February 11.
Officials at the Johnson County Circuit Clerk’s Office say Willis is out on bond under the condition that she has no contact with the Girl Scouts.
Wednesday, September 5, 2012
Ky. woman sentenced to 27 months in prison, ordered to pay $364K for embezzling from nuns in Kentucky.
FROM THEREPUBLIC.COM -
A former bookkeeper for the Little Sisters of the Poor was sentenced Tuesday to 27 months in prison and ordered to pay $364,000 in restitution for embezzling money from the charity and using it to buy herself a new car, among other items.
U.S. District Judge Joseph H. McKinley told 54-year-old Mary "Kathy" Montfort that she was getting one of the lesser sentences available, in part because the judge wanted to make sure as much money as possible is repaid to the religious order.
"Stealing from Little Sisters of the Poor, it would have been better if you stole from General Motors, from a public relations standpoint," McKinley said. "But, theft is theft."
Montfort pleaded guilty in April to pilfering the money by forging the names of nuns in writing 43 checks on the organization's account between April 2010 and November 2011. She had faced 16 charges, including forging checks and money laundering.
In federal court in Louisville, Montfort was apologetic to two nuns who sat silently in the courtroom bedecked in all-white habits.
"I know I hurt you deeply," Montfort said. "I know it's been a hardship."
Montfort also wrote a letter to the nuns, a copy of which was placed in her court file, expressing grief and distress at having taken from the order and violating their trust. Montfort wrote that she "truly loves" the nuns and apologized for taking the money.
"I know what I have done is terribly wrong and that I have hurt a lot of people in the process," Montfort wrote. "That was never my intention."
Montfort said she took the funds after running into financial difficulties and was unable to get a loan. Montfort said she planned to pay it back. "One situation led to another and I had no real idea that it had reached the level that it finally came to," Montfort wrote.
Montfort wrote that she did used the money for "personal needs," but most of it went to help people who "really needed help," including family friends who were unable to pay for a funeral and insurance costs.
"The majority of the money was used for necessities for my family and others," Montfort wrote. "I know that I have made a terrible mistake and want to do what is right to correct things."
McKinley took note of the letter and Montfort's explanation of what happened to some of it, particularly that it was given away to others.
"That wasn't your money to give away," McKinley said. "And, you certainly weren't stealing from the rich to give to the poor."
Mike O'Connell, the Jefferson County Attorney and board member of the St. Joseph's Home for the Aged, which the sisters run, told McKinley the nuns were glad the case was coming to an end.
"It's been quite an ordeal," O'Connell said.
Assistant U.S. Attorney Bryan Calhoun recommended 27 to 33 months in prison for Montfort, noting that the sisters rely on donations and that they'll be without a significant amount of money unless and until restitution is paid.
"The lasting effect in this case is more significant than it would be on a corporation," Calhoun said.
The charges arose in November when a nun with Little Sisters of the Poor, who operate St. Joseph's Home for the Aged in Louisville, called police to report suspicions that Montfort was embezzling from the organization. The nun, identified only as "M.C." in a criminal complaint, told federal officers that Fifth Third Bank called to verify a $14,742 check deposited in an account belonging to one of Montfort's relatives while Montfort was on vacation.
Investigators determined the check was fraudulent and the bank conducted a review and found 43 checks totaling $200,294 paid to a relative of Montfort's from April 7, 2010 through Nov. 10, 2011. Prosecutors say Montfort, who worked for the order from 2007 until her arrest, bought a 2010 Ford Fusion and a 2008 Mercury Grand Marquis with the money. Calhoun said both vehicles will be forfeited as part of the agreement.
A former bookkeeper for the Little Sisters of the Poor was sentenced Tuesday to 27 months in prison and ordered to pay $364,000 in restitution for embezzling money from the charity and using it to buy herself a new car, among other items.
U.S. District Judge Joseph H. McKinley told 54-year-old Mary "Kathy" Montfort that she was getting one of the lesser sentences available, in part because the judge wanted to make sure as much money as possible is repaid to the religious order.
"Stealing from Little Sisters of the Poor, it would have been better if you stole from General Motors, from a public relations standpoint," McKinley said. "But, theft is theft."
Montfort pleaded guilty in April to pilfering the money by forging the names of nuns in writing 43 checks on the organization's account between April 2010 and November 2011. She had faced 16 charges, including forging checks and money laundering.
In federal court in Louisville, Montfort was apologetic to two nuns who sat silently in the courtroom bedecked in all-white habits.
"I know I hurt you deeply," Montfort said. "I know it's been a hardship."
Montfort also wrote a letter to the nuns, a copy of which was placed in her court file, expressing grief and distress at having taken from the order and violating their trust. Montfort wrote that she "truly loves" the nuns and apologized for taking the money.
"I know what I have done is terribly wrong and that I have hurt a lot of people in the process," Montfort wrote. "That was never my intention."
Montfort said she took the funds after running into financial difficulties and was unable to get a loan. Montfort said she planned to pay it back. "One situation led to another and I had no real idea that it had reached the level that it finally came to," Montfort wrote.
Montfort wrote that she did used the money for "personal needs," but most of it went to help people who "really needed help," including family friends who were unable to pay for a funeral and insurance costs.
"The majority of the money was used for necessities for my family and others," Montfort wrote. "I know that I have made a terrible mistake and want to do what is right to correct things."
McKinley took note of the letter and Montfort's explanation of what happened to some of it, particularly that it was given away to others.
"That wasn't your money to give away," McKinley said. "And, you certainly weren't stealing from the rich to give to the poor."
Mike O'Connell, the Jefferson County Attorney and board member of the St. Joseph's Home for the Aged, which the sisters run, told McKinley the nuns were glad the case was coming to an end.
"It's been quite an ordeal," O'Connell said.
Assistant U.S. Attorney Bryan Calhoun recommended 27 to 33 months in prison for Montfort, noting that the sisters rely on donations and that they'll be without a significant amount of money unless and until restitution is paid.
"The lasting effect in this case is more significant than it would be on a corporation," Calhoun said.
The charges arose in November when a nun with Little Sisters of the Poor, who operate St. Joseph's Home for the Aged in Louisville, called police to report suspicions that Montfort was embezzling from the organization. The nun, identified only as "M.C." in a criminal complaint, told federal officers that Fifth Third Bank called to verify a $14,742 check deposited in an account belonging to one of Montfort's relatives while Montfort was on vacation.
Investigators determined the check was fraudulent and the bank conducted a review and found 43 checks totaling $200,294 paid to a relative of Montfort's from April 7, 2010 through Nov. 10, 2011. Prosecutors say Montfort, who worked for the order from 2007 until her arrest, bought a 2010 Ford Fusion and a 2008 Mercury Grand Marquis with the money. Calhoun said both vehicles will be forfeited as part of the agreement.
Saturday, August 27, 2011
Jefferson County Public School employee arrested for embezzlement in Kentucky
FROM EXAMINER.COM -
A Jefferson County Public School elementary school counselor has been accused of stealing money from a fundraiser she coordinated. According to arrest records, Kelly B. Moon, 42, was employed by the JCPS as a counselor at Middletown Elementary school
Police said while at Middletown, Moon organized a school fundraising program called, The NED Show” from All for KIDZ, a company out of Lynnwood, Washington. The Ned Show is paid for by merchandise sold at performances. Moon admitted that she knew she was obligated to pay for The NED Show no later than ten days after the show’s March 4 performance. The merchandise was invoiced by All for KIDZ at $3,367.50.
According to arrest records, Moon admitted that she made two deposits totaling $588 from the performance’s proceeds into her personal bank account. She also told police she intentionally kept checks, money order and cash from the show totaling approximately $222, and that additional checks made out to The NED Show totaling $664 remained under her control until June 2011.
As previously reported, embezzlement happens more frequently when one staff member has control over the cash flow by writing checks, making deposits, balancing the monthly bank statement, writing payroll checks and even filing tax returns. Separation of duties is highly encouraged for all companies and organizations, no matter how small the dollars may be.
Sunday, August 21, 2011
Louisville PTA Mom indicted on fraud charges
FROM EXAMINER.COM -
A Liberty Elementary PTA Mom was indicted by an Oldham County grand jury for theft of more than $11,000 by forging checks from the school’s PTA.
Melanie Winkle, 39, of LaGrange, is charged with theft by unlawful taking and nine counts of forgery. It began in June 2010 with a $3,000 check Winkle allegedly forged, followed by eight additional checks over the next nine months.
The checks totaled $11,527.14. The police launched an investigation after PTA board members found discrepancies earlier this summer.
Winkle’s pretrial conference is scheduled for September 1
A Liberty Elementary PTA Mom was indicted by an Oldham County grand jury for theft of more than $11,000 by forging checks from the school’s PTA.
Melanie Winkle, 39, of LaGrange, is charged with theft by unlawful taking and nine counts of forgery. It began in June 2010 with a $3,000 check Winkle allegedly forged, followed by eight additional checks over the next nine months.
The checks totaled $11,527.14. The police launched an investigation after PTA board members found discrepancies earlier this summer.
Winkle’s pretrial conference is scheduled for September 1
Wednesday, August 3, 2011
Big bucks unaccounted for at Fern Creek High booster club in Kentucky
FROM WAVE3.COM -
Almost a half-million dollars is unaccounted for at a local high school booster club. That has the IRS investigating and criminal charges have not been ruled out.
Big dollars and big questions. Fern Creek High Schools athletic booster club is being audited by the IRS for $485,000 that is unaccounted for between the years 2005 and 2009.
Current athletic association president Tim Fries confirmed the IRS is in the middle of a 16-month audit of the non-profit booster club that raises money for the Tigers sports teams through bingo and other fund raisers. The audit started in 2010, a year after the dates in question. Fries said the Fern Creek Athletic Association is still waiting on the IRS final report, but said the IRS has told him no decision has been made on whether to turn its findings over to criminal investigators.
Fries said he was asked to take over the booster club after the audit began and that he and the rest of the current board were not a part of the booster club during the dates being audited by the IRS.
Troy Johnson, the current Fern Creek athletic director, was president of the booster club during the years the IRS is now auditing. Jarrad Durham, the current Fern Creek baseball coach, acted as a director for the athletic association over that same time period. Reached by phone Tuesday afternoon, Johnson said it is not as big a deal as people think it is, but would not elaborate.
Chuck Adkins, an attorney hired to represent the Fern Creek Athletic Association, said it's unclear if any laws were broken.
"We don't know whether that money was embezzled or just book keeping errors," Adkins said. "We'll have to wait and see what the audit says.
Watkins said Fries and the board have been following all state and federal laws since the problems came to light.
In addition to the possibility of criminal charges, the Fern Creek Athletic Association is in danger of losing its non-profit status and having to pay a six figure tax bill.
I spoke to the attorney hired to represent the Fern Creek Athletic Association and he gave us the following statement:
"It's unclear if any laws were broken. We don't know whether that money was embezzled or just book keeping errors."
Lauren Roberts, spokesperson for Jefferson County Public Schools, released the following a statement to WAVE 3 that she has "never known of any booster club to have that kind of money."
Roberts said JCPS does not manage booster funds and the school district has no authority in it.
The WAVE 3 Troubleshooter department was unable to reach a spokesperson with the IRS for comment.
Almost a half-million dollars is unaccounted for at a local high school booster club. That has the IRS investigating and criminal charges have not been ruled out.
Big dollars and big questions. Fern Creek High Schools athletic booster club is being audited by the IRS for $485,000 that is unaccounted for between the years 2005 and 2009.
Current athletic association president Tim Fries confirmed the IRS is in the middle of a 16-month audit of the non-profit booster club that raises money for the Tigers sports teams through bingo and other fund raisers. The audit started in 2010, a year after the dates in question. Fries said the Fern Creek Athletic Association is still waiting on the IRS final report, but said the IRS has told him no decision has been made on whether to turn its findings over to criminal investigators.
Fries said he was asked to take over the booster club after the audit began and that he and the rest of the current board were not a part of the booster club during the dates being audited by the IRS.
Troy Johnson, the current Fern Creek athletic director, was president of the booster club during the years the IRS is now auditing. Jarrad Durham, the current Fern Creek baseball coach, acted as a director for the athletic association over that same time period. Reached by phone Tuesday afternoon, Johnson said it is not as big a deal as people think it is, but would not elaborate.
Chuck Adkins, an attorney hired to represent the Fern Creek Athletic Association, said it's unclear if any laws were broken.
"We don't know whether that money was embezzled or just book keeping errors," Adkins said. "We'll have to wait and see what the audit says.
Watkins said Fries and the board have been following all state and federal laws since the problems came to light.
In addition to the possibility of criminal charges, the Fern Creek Athletic Association is in danger of losing its non-profit status and having to pay a six figure tax bill.
I spoke to the attorney hired to represent the Fern Creek Athletic Association and he gave us the following statement:
"It's unclear if any laws were broken. We don't know whether that money was embezzled or just book keeping errors."
Lauren Roberts, spokesperson for Jefferson County Public Schools, released the following a statement to WAVE 3 that she has "never known of any booster club to have that kind of money."
Roberts said JCPS does not manage booster funds and the school district has no authority in it.
The WAVE 3 Troubleshooter department was unable to reach a spokesperson with the IRS for comment.
Wednesday, July 14, 2010
A grand jury has indicted a former daycare director at a Lexington, Kentucky church on eight theft counts.
A grand jury has indicted a former daycare director at a Lexington church on eight theft counts.WKYT-TV reported 39-year-old Marcie King of Lexington is accused of taking more than $115,000 while working for Southern Hills United Methodist Church between 2006 and 2009.Police said the stolen money was used for weight loss programs, vacations and other personal spending.The station was unable to contact King and reported she was free on bond after turning herself in.
Thursday, July 8, 2010
Frankfort, Kentucky woman pleads not guilty to embezzling $40,000 from day care center
A Frankfort woman pleaded not guilty Wednesday to embezzling $40,000 from a non-profit child care organization in Lexington for which she worked.Mary Tincher, 39, is charged with felony theft by deception of an amount more than $10,000. Tincher is accused of electronically transferring funds to her private bank account from Child Development Centers of the Bluegrass over seven months. Child Development Centers, 465 Springhill Drive, provides speech, occupational and physical therapy to children with disabilities. The organization also runs a day care program for children with and without special needs.Tincher was hired as a financial employee in August. She declined comment after Wednesday's arraignment.Tincher is scheduled to return to Fayette District Court on July 22 for a preliminary hearing. She was released from the Fayette County jail after posting 10 percent of a $5,000 bond.
Thursday, May 27, 2010
Former Kentucky car dealer who stole from church sentenced
Former car dealer Delbert Ault was sentenced Thursday for stealing from his church, Centenary United Methodist.
Fayette Circuit Judge James Ishmael sentenced Ault, former operator of Ault Chevrolet in Lawrenceburg and briefly an official with the Bluegrass Stallions professional basketball team, to spend two days in jail. However, Ault received credit for the time he spent in jail after his arrest last fall.
Ault had pleaded guilty in March to amended charges of misdemeanor theft by deception and misdemeanor theft by failure to make required disposition of property. The judge imposed 12-month sentences on each count, then probated the sentences which will run concurrently. In addition, Ault was ordered to perform community service and pay restitution.
Ault was indicted in November on a charge of theft by deception for allegedly making inappropriate charges on a gas credit card belonging to Centenary United Methodist. He was also charged with failure to make required disposition of property for allegedly accepting money from the Henry Clay High School girls' basketball team for transporting them on church buses and not giving the money to the church. Ault drove and oversaw buses for Centenary at the time.
Ault and his attorney, Henry Hughes of Lexington, declined comment.
Ault is scheduled to report to the Fayette County jail at 7 a.m. May 29. He will be released at 7 a.m. May 30.
Fayette Circuit Judge James Ishmael sentenced Ault, former operator of Ault Chevrolet in Lawrenceburg and briefly an official with the Bluegrass Stallions professional basketball team, to spend two days in jail. However, Ault received credit for the time he spent in jail after his arrest last fall.
Ault had pleaded guilty in March to amended charges of misdemeanor theft by deception and misdemeanor theft by failure to make required disposition of property. The judge imposed 12-month sentences on each count, then probated the sentences which will run concurrently. In addition, Ault was ordered to perform community service and pay restitution.
Ault was indicted in November on a charge of theft by deception for allegedly making inappropriate charges on a gas credit card belonging to Centenary United Methodist. He was also charged with failure to make required disposition of property for allegedly accepting money from the Henry Clay High School girls' basketball team for transporting them on church buses and not giving the money to the church. Ault drove and oversaw buses for Centenary at the time.
Ault and his attorney, Henry Hughes of Lexington, declined comment.
Ault is scheduled to report to the Fayette County jail at 7 a.m. May 29. He will be released at 7 a.m. May 30.
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