Northboro-Southboro school official accused of stealing up to $450K to fuel drug habit

Fueled by an addiction to painkillers and cocaine, the budget officer for the Northboro-Southboro School District stole as much as $450,000 from the district, authorities alleged Thursday in Westboro District Court.

Christopher P. Hoey, 34, was arrested Wednesday night at his home at 15 Great Road in Stow, court records show, after allegedly admitting that he began taking money with the intent to give it back but got in too deep.

“Hoey put a self-estimated value of his theft in the $200,000 to $400,000 range,” state troopers wrote in court documents. Judge Vito A. Virzi ordered Mr. Hoey held on $100,000 cash bail, writing in the bail order that Mr. Hoey is alleged to have stolen $450,000.

The thefts were reported to Worcester District Attorney Joseph D. Early Jr. by district Superintendent Christine M. Johnson, who reached out Wednesday, troopers said, after financial records from the past three months led her to believe that Mr. Hoey had stolen from the district’s petty cash account. Troopers contacted Mr. Hoey at his home, and after being read his Miranda rights, he agreed to answer questions on audio tape.

“In essence, Hoey admitted that he deposited reimbursement checks from the various school districts and vendors into the ‘petty cash’ account,” Trooper Michael A. Leo wrote. “He would then write checks out to cash.

“Hoey stated that the majority of the cash was used to support a drug addiction,” Trooper Leo wrote, with a “small portion” used for personal expenses.

Police said Mr. Hoey told them he had a “serious” addiction to Percocet – an opioid pain medication – and cocaine, and that he has “started rehabilitation.”

Trooper Leo said Mr. Hoey “stated that he started (stealing) with the intention of paying the money back but eventually realized that it would not happen due to the amount that he was taking.”

Trooper Leo wrote that Mr. Hoey identified about 30 checks drawn from the account since December 2015 worth roughly $150,000.

“Hoey further stated that he started this scheme approximately one year into his employment,” Trooper Leo wrote.

The trooper did not write in the document how long Mr. Hoey had been employed by the district. Ms. Johnson declined to answer any questions on the topic Thursday; Mr. Hoey’s LinkedIn page indicates he had worked as budget officer in the district for 3 years and 7 months. Before that, he listed himself as assistant town accountant in Leicester for two years; a document posted to the Leicester town website confirms he was assistant accountant there in 2012.

According to court documents, Mr. Hoey’s job in the district was to process incoming revenue, vendor payments and payroll.

Mr. Hoey is charged with larceny over $250 by common scheme, embezzlement by a public official and larceny over $250 by uttering a false check. The charge for embezzlement by a public official would need to be prosecuted in a higher court and carries a maximum prison sentence of 10 years; the other charges both have penalties ranging from two to five years in prison and fines of up to $25,000.

In a statement Thursday announcing the charges, Mr. Early said his troopers and police from Northboro and Southboro continue to investigate the case.

“The school district assisted investigators and a complete forensic audit is underway,” Mr. Early said.

Mr. Hoey had not made bail as of Thursday afternoon, court officials confirmed. He is due back in court for further arraignment on April 1.

At her office Friday in Southboro, Ms. Johnson said she could not comment because the case is still under investigation. She referred all questions to Mr. Early’s office, including questions about whether there would be ramifications on the school budget and whether Mr. Hoey had been fired.

Mr. Hoey was listed as budget officer at about 1 p.m. on the district’s website; by 5 p.m., his name had been removed.

“Efforts are underway to recover these funds as well as to ascertain the manner in which these funds were allegedly embezzled,” Ms. Johnson wrote in an email to parents Thursday evening. “At the conclusion of our investigation, we will review findings and recommendations regarding procedural safeguards.”

In her email, Ms. Johnson called the information “unsettling and difficult to comprehend,” and noted the district conducts financial audits every year.

“In the last few days, it has become increasingly clear that no school district or business is immune from unscrupulous individuals who may engage in fraudulent activities,” Ms. Johnson wrote.

Northboro and Southboro have three school districts – a K-8 district for each town and a third for Algonquin Regional High School – and they share central office staff.

For fiscal 2016, the budget for all three districts combined was $61.6 million - $20.7 million for Algonquin, $18.9 million for Southboro K-8 and $22 million for Northboro K-8.

Northboro K-8 School Committee Chairman John Kane said Thursday night that he does not anticipate the thefts to affect his budget. Kathleen Harragan Polutchko, chairwoman of the regional School Committee, did not immediately return a call Thursday evening, while Southboro K-8 School Committee Chairman Paul H. Desmond did not appear to have a working listed number.

A message left at a phone number listed in court papers for Mr. Hoey was not returned Thursday. A call to a listed number for his home rang repeatedly without reaching a machine.

Online records from the Stow assessor’s office value Mr. Hoey’s single-family home at $286,400

Ex-secretary sentenced for embezzling from San Pedro Catholic school

A woman was sentenced to 150 days of Caltrans service and five years probation for stealing Scrip fundraising gift cards from a Catholic school in San Pedro, where she worked as a secretary, the Los Angeles County District Attorney’s Office announced Friday.

Kimberly Rauch, 49, also was ordered to pay $1,600 in restitution to Holy Trinity School and was barred from holding any job positions or roles in which she can handle an organization’s finances, according to the District Attorney’s Office.

Rauch pleaded guilty last week to a felony count of grand theft by embezzlement.

School officials notified law enforcement in January 2014 after finding a pattern in the disappearance of Scrip fundraising gift cards, according to Deputy District Attorney Brian Kang.

After months of investigation, authorities determined that Rauch — who worked at the school for two years — had taken the gift cards between January 2013 and January 2014. She was charged in July 2014.

Parents fight to keep school open despite embezzlement allegations

 Parents and students filled the auditorium of an area charter school Thursday night, fighting to keep the facility open after one of its founders was accused of stealing more than half a million dollars from it.

Parents are frustrated that the Latin Academy, a charter middle school on Metropolitan Parkway in southwest Atlanta, is on the verge of closing less than four years after it was founded. Several students presented letters to the school's board of directors, pleading with them to find a way to keep the school operating.

One of the founders of Latin Academy was Christopher Clemons, who also served as the financial director. Clemons is now under investigation, accused by the board of directors of stealing more than $600,000 from the school for personal use.

Clemons has not been charged with a crime. Police began investigating him after administrators reported the missing money, claiming that Clemons and one other employee were the only ones with access to the money.

As a result of the missing funds, Atlanta Public School officials put the school on probation.

During Thursday night's meeting, it was revealed that Latin Academy administrators did not secure enough funding in the form of grants and state funding to keep it operational.

Parents at the meeting were visibly upset and made their frustrations clear.

"You have failed these students, this community and their opportunity and right to social and educational equality," said one man in attendance.

Another attendee of the meeting said school officials are out of touch with parents with students enrolled at the facility.

"Every day, kids of the same color are laying dead in the street, or they're in the news because they're robbing somebody," said the woman. "You don't live on this side of town so you don't see where we come from."

After hearing the public comments, the board of directors decided to postpone the closure vote until next month.

Ex-NC State professor charged with embezzlement, placed on house arrest

NC State associate professor Scott Whisnant faced his first court appearance Thursday afternoon after turning himself in on three charges of embezzlement.

Whisnant turned himself in Wednesday upon University Police obtaining a warrant for his arrest on three charges of embezzlement. If found guilty, Whisnant could be in prison for 39 months, according to Judge Keith Gregory, whose court he made an appearance in Thursday afternoon. The embezzlement charges are felony level. 

Whisnant plead no contest. Whisnant’s attorney Christian Dysart asked that Whisnant be considered for pre-trial release. Gregory granted the request, on the condition that Whisnant remain under electronic house arrest for the duration of the trial.

Whisnant took $750 from the Agri-Life Council, $16,862 from the Alpha Zeta Agricultural Honors Fraternity, and $54,255 from the Animal Science Club over the past year, according to The News & Observer. Whisnant resigned from the animal science department the day before he turned himself in to the Wake County Sheriff's Department.

According to Dysart, Whisnant has made restitutions to the groups. Raleigh District Attorney Becky Holt confirmed that she had heard that restitution had been made, so she did not attempt to alter the charges against Whisnant.

The treasurer of the Animal Science Club tipped N.C. State auditors off to discrepancies in the club's bank statements on Jan. 14. University Police began investigating five days later, according to WRAL.

Charlotte Farin has taken over the teaching duties of Whisnant’s ANS 220 class. She told the class she didn’t have any details on the investigation, but she wanted the transition to go as smooth as possible, according to students enrolled in the class.

Animal Science Club fundraises most of its money through the milk booth at the State Fair.

Former Florida State University Finance Professor Sentenced to Prison for Embezzlement

Today, former Florida State University (FSU) Assistant Professor of Finance, James S. Doran PhD, 40, of Boulder, Colorado, was sentenced to 13 months in prison and a $15,000 fine for embezzlement concerning a program receiving federal funds.  The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.

At trial, the government presented evidence that, between May 2010 and March 2011, Doran, while employed at FSU’s College of Business, intentionally embezzled money from the Student Investment Fund Inc. (SIF).  The SIF was developed to give business students practice in conducting stock purchases and managing an investment portfolio.  Doran, who oversaw the SIF as a faculty advisor, made a series of transfers totaling more than $650,000 from the SIF to his own personal investment account.  He also used $10,000 in SIF monies to pay for a performance evaluation of his personal investment fund.  Doran returned the monies after an audit disclosed his illegal transfers.  Doran was convicted on November 19, 2015.

The case was investigated by the United States Secret Service, the FSU Police Department, and the FSU Office of Inspector General Services.  It was prosecuted by Assistant United States Attorneys Gary K. Milligan and Jason R. Coody.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

Lapeer High School softball coach faces embezzlement charges

A Lapeer High School softball coach faces embezzlement charges following a joint investigation by the Michigan Attorney General's Office and the Michigan Gaming Board.

Along with the softball coach, two Lapeer residents must answer to misdemeanor charitable gaming violations and a Lapeer district teacher has pled guilty to charitable gaming violations following the investigations.

The two year investigation focused on charity poker events held at Gloria's Poker Palace in Burton between 2010 and 2013, according to a news release from the Michigan Gaming Control Board.

Lapeer High School softball coach Mallory Jackson, Tamara Miller and Gerald Miller all pled not guilty in 67th District Court to crimes related to millionaire party charity events, according to the release. Jackson and the Millers are related.

Lapeer West Softball was an independent organization not affiliated with the schools that qualified for millionaire party event licenses.

In a related case, Lapeer Community Schools teacher Matthew Nowak, 38 of Attica, pled guilty Feb. 11 to two charitable gaming violations in 67th District Court.

"It's very disappointing when people in youth leadership roles are accused of illegal activities and diverting money associated with charitable fundraising," said Richard Kalm, executive director, Michigan Gaming Control Board in a statement. "Our neighbors support fundraising events because they expect their money to go to charity and not to be misled about how their money is spent.

"We will continue to enforce Michigan laws to protect the public and charities from unscrupulous and illegal behavior by persons involved in charitable gaming," Kalm said.

Here is a list of the charges:

Mallory Jackson, 28 of Davison:

• One count of embezzling more than $200 but less than $1,000 from a non-profit or charitable organization, which is a felony punishable by up to five years in prison and/or a $10,000 fine.
• One count of diverting a portion of net millionaire party event proceeds to a purpose other than the charity's lawful purpose. This is a misdemeanor punishable by up to six months in jail and/or a $1,000 fine.
• Two counts of aiding and abetting by sending a portion of net millionaire party proceeds to individuals for a purpose other than a charity's lawful purpose. Each count is a misdemeanor punishable by up to six months in jail and/or a $500 fine.
• One count of conspiracy with other individuals to aid and abet. This is a misdemeanor punishable by up to six months in jail and/or a $500 fine.
• Jackson was arraigned on Jan. 27 and was released on $15,000 personal bond.
• A probable cause conference is scheduled for Feb. 25 in Judge Jennifer Manley's courtroom.

Tamara Miller, 48 of Lapeer, (former treasurer of Lapeer West softball):

• Four counts of diverting a portion of millionaire party event net proceeds, which are misdemeanors punishable by up to six months in jail and/or a $1,000 fine.
• Tamara was arraigned on Feb. 11 and was released on $20,000 personal bond.
• A pre-trial conference is scheduled for March 10 in 67th District Court.

Gerald Miller, 49 of Lapeer, (former vice president of Lapeer West softball):

• Two counts of diverting a portion of millionaire party event net proceeds, which are misdemeanors punishable by up to six months in jail and/or a $1,000 fine.
• Gerald was arraigned Feb. 11 and was on $10,000 personal bond.
• A pre-trial conference is scheduled for March 10 in 67th District Court.

Matthew Nowak, 38 of Attica, (biology and life sciences teacher at Lapeer's Zemmer Middle School and a wrestling coach at Lapeer High School), pled guilty and paid $1,450 in fines and court costs:

• Illegal distribution of a portion of millionaire party charitable proceeds to Lapeer West Softball Club and Renegades Baseball Team/Michael McCollum, 51 of Burton.
• Aiding or abetting an unqualified person who did not belong to the Lapeer Wrestling Club to manage the organization's millionaire party at Gloria's Poker Palace in October 2012.

Jackson allegedly embezzled money from the Lapeer West Softball Club between September 2012 and October 2013 while she was the club's president, according to the release. Investigators allege Jackson gave a portion of the money raised at Lapeer West Softball Club millionaire party events to McCollum, which violates state law.

McCollum was arraigned recently in 67th District Court on multiple felony charges of larceny by false pretenses and a felony embezzlement charge related to charity poker events at Gloria's Poker Palace in Burton between 2010 and 2013, according to the release.

During the time Tamara served as treasurer for the Lapeer West Softball Club between October 2010 and July 2011, she allegedly diverted money raised on the club's behalf to Addix -- a custom sports apparel provider -- Oxford  Wrestling and Michigan USA Wrestling, which violates state law, according to the release.

Gerald allegedly diverted money raised on behalf of the Lapeer West Softball club to the Renegades Baseball Team and/or McCollum and Lapeer West Wrestling Club's chairperson, during the time period that he served as its vice presidents between December 2010 and March 2011, violating state law, according to the release.

Gloria's Poker Palace, along with Flint-area poker rooms Pocket Aces and Lucky's were among several Michigan locations where charitable gaming was discontinued.

Since 2014, six people associated with Gloria's, Pocket Aces and Lucky's have pled guilty to gaming crimes following investigations by the Michigan Attorney General's Office and the MGCB, according to the release.

Investigations into charitable gaming activities are ongoing

Midland man pays $10,000 toward restitution in preschool embezzlement case

A Midland man who admitted he embezzled money from a Midland preschool paid $10,000 toward restitution at his sentencing last week.

Lawrence William Weideman, 41, was charged with one count of embezzlement of $20,000 to $50,000 from the St. John’s Episcopal Cooperative Pre-School.

Midland County Circuit Court Judge Stephen P. Carras sentenced Weideman to a one year sentence delay, as well as $1,750 fines and costs, plus one year of probation.

Weideman entered a guilty plea in the case in exchange for a deal calling for a misdemeanor charge of embezzlement between $200 and $1,000 to be entered into Weideman’s record if he successfully completes the sentence delay.

Weidman’s $10,000 payment toward restitution also was part of the plea deal. The total amount of restitution has yet to be set.

The charges were filed after Midland Police were contacted in May.

Preschool employees told Midland Police they believed the embezzlement began in August of 2013, after Weideman became treasurer, court documents state. A review of bank accounts, conducted by employees, showed direct transfers to a personal bank account from the preschool’s bank account, as well as checks written from the preschool’s account, then deposited into a personal account.

Some deposits were made into the preschool’s account from a personal account. “When the preschool account was going to be short for payroll, deposits were always made to cover the amounts,” court records state.

The activity continued until May of 2015. The total believed to have been embezzled is $34,084, the documents state.

Weideman is being represented by Midland attorney Courtney L. Thom.

SC teacher accused of stealing donations meant for American Cancer Society

A longtime teacher is accused of stealing money raised by students and staff meant for the American Cancer Society, according to the Lancaster County Sheriff’s Office.

Yvonne Johnson Oswald, 48, is charged with embezzlement of public funds.

Oswald was a teacher for more than 20 years and worked at A.R. Rucker Middle School for the Lancaster County School District. School district leaders said students and staff were able to pay $2 to participate in “dress down” days rather than wearing school uniforms.

The money was to be deposited and donated to the American Cancer Society by Oswald, the report states.

An employee reported the possible embezzlement to the school district in January 2016.

The school district conducted an internal investigation and turned findings over to the Lancaster County Sheriff’s Office. Funds were noted to be missing from collections in September 2015 and November 2015, according to the school district.

Oswald was questioned by school leaders and the conversation was recorded.

The veteran teacher admitted that she had not deposited an estimated $500 from September and had instead used the money for personal purposes, according to the sheriff’s report. Oswald told deputies that $600 from November 2015 collections was “locked up in her room,” the report states.

That money was recovered, Lancaster County School leaders said. Oswald resigned from her position within the school district and was arrested and charged last week.

According to the sheriff’s report, Oswald had been instructed to govern the fundraiser money “for the past few years.”

For parents like Cassie Bright, the allegations against the teacher are personal.

“My father had cancer. Half of my family has died of cancer, and that just makes me really really upset, that is wrong,” Bright said.

Bryan Vaughn with Lancaster County Schools said school staffers placed the former employee on paid leave while they conducted an internal investigation.

“I think there’s a lot of concern, just from a moral standpoint,” Vaughn said. “Anytime public dollars are taken I think there’s a trust issue.”

Vaughn said it was possible the district could recover the $500 through restitution, depending on the outcome of the criminal court case.

According to Vaughn, Oswald was cooperative during the investigation.

“Once she was confronted, she was cooperative with the investigation and she took responsibility for her actions,” Vaughn said.

WBTV went to Oswald’s listed address for a comment, but no one came to the door.

Neighbors said the allegations are against her character.

“I was surprised, and I hate it for her, and I know she didn’t really mean to do anything wrong,” said neighbor Glenn Sowers.

Bright said giving money to allow her child to challenge the dress code occasionally hit her pocket book, but she thought the money was going towards a good cause.

“We work hard for that money, and for us to give our kids $2, it might not seem like it’s a lot, but sometimes it is,” said Bright.

Martinsburg man sentenced in college embezzlement case

A Martinsburg man who police said admitted to embezzling from Valley College to pay restitution for a previous embezzlement conviction was sentenced after pleading guilty to one felony count of embezzlement in Berkeley County Circuit Court.

Bradley Scott Martin, 31, was sentenced by 23rd Judicial Circuit Judge John C. Yoder to not less than one or more than 10 years in prison.

Martin also was ordered to pay more than $25,000 in restitution, with $20,842 to be paid to Valley College and $4,442 to Manpower in Martinsburg, Berkeley County Assistant Prosecuting Attorney Gregory K. Jones said.

The remaining 139 counts of forgery, uttering and fraudulent scheme in Martin's October 2015 indictment were dismissed as part of a binding plea agreement.

Authorities have alleged that Martin was working as a contract employee for the college when he altered multiple time slips, which resulted in him being overpaid by Manpower, court records said.

Police also alleged that Martin forged 60 checks identified by Valley College and uttered them, records said.

Police said Martin admitted to committing the embezzlement, indicating he was responsible for managing the accounts-payable accounts at Valley College, and had access to write the checks against the school's BB&T Bank account, records said.

The alleged offenses occurred between October 2012 and April 2013, court records said.

When questioned about the allegations, West Virginia State Police Sgt. J.M. Walker said Martin "stated he used the proceeds from the fraud to pay restitution to the court for a previous embezzlement conviction."

Before Thursday's hearing, Martin had been incarcerated due to a parole revocation connected to the previous embezzlement conviction.

Woman arrested for embezzlement from Riverside Elementary School daycare

A 28-year-old Longs woman has been arrested and charged with embezzling money from the Riverside Elementary School's daycare.

Mandy Bellamy, of Longs, has been charged with embezzlement of public funds, value $5,000 or more, according to detention center records.

Police were called by the principal and bookkeeper who said that they were told by the child care director that Bellamy had been acting strangely the past few weeks and showed an "overwhelming interest in receiving the money from parents and would always want to drop the 'money bag' at the end of the work day," said a police report.

On one occasion the bookkeeper found the money bag $170 dollars short and a record of that specific payment was missing from the money bag, according to the report.

Surveillance footage was reviewed and Bellamy was seen walking down the hall with the bag, but then sitting down on a chair and unzipping the bag, according to the report.

She is then seen, according to the police report, pulling out several payments, setting one aside and returning the others to the bag.

After seeing this tape, other instances were discovered where Bellamy carried the money bag to be delivered and some recorded payments never made their way to the bookkeeper, according to the report.

McKinney woman pleads guilty in university embezzlement scheme

A McKinney woman has pleaded guilty to federal theft charges related to a university embezzlement scheme, the U.S. Attorney’s office announced this week.

Heather Elizabeth Mercado, 42, pleaded guilty Monday before U.S. Magistrate Judge Christine A. Nowak of the Eastern District of Texas.

According to information presented in court, from December 2014 to April 13, 2015, Mercado was employed by the University of Texas Southwestern Medical Center in Dallas as director of talent acquisition with the Human Resources Department. Mercado also controlled and operated a company, Alliance Consulting Partners (ACP), purportedly in the business of hospital staffing. 

Mercado devised and executed a scheme in which she represented to UT Southwestern Medical Center that ACP recruited nurses and other personnel to work at UT Southwestern, thereby leading to fraudulent invoices causing UT Southwestern Medical Center to pay ACP more than $483,000, according to authorities. 

Mercado was indicted by a federal grand jury Jan. 13 of this year. She faces up to 10 years in federal prison. Her sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing date had not been set as of late this week.

The Internal Revenue Service-Criminal Investigation and UT Southwestern investigated the case, which was prosecuted by Assistant U.S. Attorney Chris Eason.

Hearing set in BISD's Lambert fraud, conspiracy case

A hearing to determine how much money the federal government says former Beaumont ISD assistant superintendent Patricia Lambert stole from the school district has been set for Feb. 22.

The government asserts Lambert stole about half a million dollars, but she claims the amount was a lot less, according to John M. Bales, U.S. attorney for the Eastern District of Texas.

Lambert, 61, pleaded guilty in December to one count of fraud on programs receiving federal funds and one count of conspiracy to submit false statements concerning standardized test scores. She had been charged with four counts of fraud and one count of conspiracy.

In exchange for her guilty plea on one fraud count, the government agreed to drop the three other fraud charges and agreed to a prison sentence of up to three years and four months, Bales said.

The amount Lambert must pay - including restitution, forfeiture of assets and possible fines - will be based on the total the court determines prior to her sentencing.

She faced a maximum of 15 years in federal prison for the two charges to which she pleaded guilty.

The amount federal prosecutors allege Lambert stole from the district was calculated based on what she gained by diverting business to her son; stealing from unaudited booster club funds; overbilling students dual-enrolled in higher-education programs and pocketing the differencel and other unexplained cash deposits, according to Bales.

The indictment accused Lambert, who retired in April 2014, of embezzling more than $750,000. Bales has said that the goverment determined only half of the $480,000 channeled to her son's printing business could be classified as fraud, which lowered the amount to about half a million.When she was principal of Central High School and later as assistant superintendent, Lambert gave most of the campus' printing business, including banners, pamphlets, football programs and instructional materials, to her son, according to a court document she signed called a factual basis and stipulation.

Bales said the government agreed not to charge Lambert's son as part of her plea deal.

Besides prison time, Lambert faces fines of up to $250,000 for each of the two counts and a total of three years of supervised release at sentencing.

Lambert's plea to the fraud charge covered count one of the indictment, for the year 2010. Counts two through four of the indictment included the same charges for each of the next three years.

Bales said the government's estimate of the amount of Lambert's fraud covers all four years, but that restitution will be based only on 2010, the period covered in the first count of the indictment.

By pleading guilty to one count of fraud instead of all four, Lambert reduced the prison time she faced at sentencing. Each fraud count carried a maximum of 10 years.

Lambert also pleaded guilty to conspiracy to make false statements about her involvement in a scheme to cheat on standardized tests. Conspiracy carries a maximum sentence of five years.

Horry County school employee charged with embezzlement

An Horry County Schools employee has been arrested on embezzlement charges.

The Sun News of Myrtle Beach reported that 28-year-old Mandy Diana Bellamy of Longs is charged with embezzlement of public funds.

Bellamy worked in the child care program at Riverside Elementary School in Little River.

A police report said Riverside Elementary staff became suspicious in December when a money bag for the child care program was $170 short.

The report said an audit showed several payments that were never given to the bookkeeper.

The report said staff noticed that Bellamy often offered to take the money bag to the bookkeeper's office.

She has been placed on administrative leave. It was not clear if she has an attorney.

Ex-Carlsbad schools employee accused of embezzlement

A former Carlsbad school district worker in charge of renting out the district’s primary performing arts center has been charged with embezzling nearly $150,000.

Authorities say that Daniel James Czypinski directed unsuspecting clients who rented the facility to make their payment checks out to a company that Czypinski created, rather than the Carlsbad Unified School District.

In 2012 and 2013, one coastal North County church paid Czypinski’s company nearly $39,000 to rent the school theater known as the Cultural Arts Center, according to a sworn declaration by Dzung Luc, the Carlsbad police detective who investigated the case.

San Diego County prosecutors charged Czypinski earlier this week with 22 counts of grand theft and allegations including aggravated white-collar crime. If convicted, Czypinski faces a maximum sentence of 19 years.

Czypinski worked for the district for a nearly two years before resigning in January 2014, according to the detective’s declaration filed in Vista Superior Court. The alleged thefts were uncovered shortly after Czypinski left the district.

The 36-year old, who moved to San Dimas about two years ago, was arrested Tuesday at Cal Poly Pomona, where he now works. He posted $300,000 bail and was released from jail later that day. Czypinski is expected to be arraigned in Vista later this month.

At Carlsbad High, Czypinski was the technical director for the Cultural Arts Center.

At Cal Poly, he is the director of sets and scenery for the Department of Theatre and New Dance. A school spokeswoman said he doesn’t deal directly with money in that role.

Czypinski could not be reached for comment Friday. Carlsbad district officials declined to comment.

The alleged embezzlement was uncovered in January 2014, when an Oceanside dance group called the district to confirm its booking arrangements. The group’s director told district officials that she had made her deposit payable to Encore Arts Marketing. School officials checked records and found no such booking or deposits paid by the dance group.

A search of Czypinski’s bank records in late 2014 revealed that more that a dozen other organizations had also paid Encore Arts to rent the school theater — with combined payments reaching more than $90,000, according to Luc’s declaration.

After Czypinski left the district, Carlbad High School’s newspaper praised his technical expertise in helping the school performances run smoothly. The news story noted that he had left to find a better job and get paid for the extra efforts and hours he put in.

Perrysburg Education board given audit in embezzling case

The Perrysburg Board of Education on Tuesday was presented with the special Ohio Auditor of the State report regarding a former employee in the schools’ treasurer’s office discovered embezzling and later sentenced to 10 years in prison. 

A spokesman with the Ohio Auditor of the State said an audit report meeting was scheduled for Tuesday.

However, that spokesman didn’t know when the audit was to be released.  

Board President Jarman Davis said before Tuesday’s meeting that he couldn’t release any details about the report because it was still in the state’s control. 

The Blade has requested a copy of the audit.

The district went into executive session at 4:30 p.m. to consider the dismissal or discipline of a public employee or official, to consider the appointment of an employee, or confer with the board’s attorney concerning matters involving the public body.

The board came out of the meeting at 7:30 p.m. and took no action.

Eric Whitson had worked in the treasurer’s office for 10 years and was fired shortly after his indictment for theft in office last year in 2014.

Two weeks ago, Whitson, 31, was sentenced to 10 years in prison and to pay restitution of $800,000 between Perrysburg schools and the Bowling Green Bobcat Athletic Boosters.

For months, the board of education and school administration wouldn’t discuss the matter while waiting for the state auditor’s report.

The embezzlement was discovered in 2014 when a new volunteer for the boosters group questioned checks written to them from Perrysburg schools.

Cases of Embezzlement & Fraud lead to changes at two school districts in Wisconsin

Two school districts are making major changes after separate cases of employee fraud and embezzlement. 

Janesville Superintendent Karen Schulte says since Jessica Warner-Reed admitted to stealing $300,000 in student funds, they have revised their fund hand book and are now eyeballing the books with new software.

"A Quicken system where the finance team here can be looking directly at the computer on the ballot sheets," Schulte said.

She says she struggled with the thought that a Craig High School Clerk could do this.

"I'm very saddened and disappointed that this happened," Schulte said.

Another measure the district has taken included hiring fee handlers who take money from students and make sure it gets to the bank.

"We'll be counting money, recounting money, we'll have a checks and balance system," she added.

In Waunakee, Former Athletic Director Brian Smith is now on probation following school credit card fraud.  The school's superintendent Randy Guttenberg says to avoid credit card fraud flying under the radar, they've amped up their auditing.

"As we are processing the credit card, we are randomly pulling credit cards and statements, making sure it is up to policy," Guttenberg said.

Former employee steals more than $100,000 from donated school funds in Manitowoc, Wisconsin

 Manitowoc Lutheran High School staff are making changes to their accounting system after learning money was missing from their accounts last year.

"We have started from the ground up and are doing all those things to regain trust with our donors, our parents and the 23 churches that own us," said director of mission advancement, Scott Reinhard.

Reinhard is installing new software and hiring trained professionals to handle book keeping after losing more than $100,000 to Wanda Larson, the school's former accountant.

"The employee was an office manager that would have had access," said Detective Sergeant, David Vorpahl with the Manitowoc Police Department.

 

According to the criminal complaint, "Airline tickets, car rentals and hotel reservations were made in Wanda's name."

 

The complaint also says Larson would buy things and "gave a lot of the stuff away and would also take people out to dinner."

 

When police asked her about the trips Larson said, "she took them for her grandchildren, so they would have some memories."

 

"Our approach to this has been to say we're going to trust our authorities," said Reinhard about the investigation.

 

When asked why she did this Larson told police, "They (the school) treated women so bad and they continue to put more work on her."

 

Larson is facing 4 felony charges of embezzlement since she stole money from 4 different school accounts.

Tustin woman admits to ripping off Catholic school for more than $400,000 in California

A Tustin woman admitted Wednesday to embezzling more than $400,000 in fund-raising money from a Catholic school.

Adela Maria Tapia, 40, pleaded guilty to 13 felony counts of money laundering with sentencing enhancements for aggravated white collar crime and property loss of more than $200,000, according to an Orange County District Attorney’s office statement.

Beginning in September 2006, Tapia worked at Holy Family Cathedral School coordinating the campuses “scrip card” program. Similar to gift cards, the scrip cards were sold to school families and parishioners to raise approximately $200,000 annually for the campuses operating funds.

Prosecutors contend that Tapia took cash payments for the scrip cards and put the money in a personal bank account. They also allege she took the scrips cards themselves and sold them to family members.

Authorities believe that Tapia spent the money on luxury clothing and goods, as well as private school tuition.

The embezzlement was discovered after a new employee took over for Tapia when she was moved into an office manager position. Upon opening a safe where the scrip cards were supposed to be held, the school principal found $120,000 worth of the cards missing.

Despite the objections of prosecutors, Tapia will avoid state prison if she completes one year in jail and five years of formal probation. She is also required to pay more than $438,000 worth of restitution.

Transportation head makes embezzlement plea in Michigan

The former transportation and grounds director for Northview Public Schools is facing up to five years in prison after pleading guilty Monday to embezzlement.

Stevie Mullins appeared in Kent County Circuit Court where he admitted to embezzling from the school district for more than four-and-a half years before his arrest in October.

In exchange for his plea, a second embezzlement count was dismissed.

The school district says it lost more than $30,000; the criminal charges are for taking tools and an air conditioner.

Mullins will be back in court for sentencing next month.

Janesville School District mum on embezzlement impact

FROM http://www.gazettextra.com/

The Janesville School District refuses to discuss how it has changed its money-handling procedures in response to the embezzlement of more than $300,000 from Craig High School over 10 years.

Superintendent Karen Schulte said Friday that she would not speak "at all" about how employees handle money, how procedures were changed to prevent future losses, how much money was transferred to student organizations to compensate for their losses, who authorized the transfers and what accounts were involved, among other things.

Janesville police believe that Jessica Warner-Reed, who was arrested Tuesday, stole more than $300,000 while she was the “banker” for Craig from 2006 to 2015.

Warner-Reed started as a clerical worker in December 2004 and became “the banker” in 2006.

The missing money came from student clubs, sports teams and other organizations whose money Warner-Reed collected and deposited.

Warner-Reed is scheduled to be in court Jan. 25.

When asked why she would not respond to general questions about district money-handling procedures, Schulte said it's "because so many things are related to the case."

"I think it's really important to follow what the district attorney has asked of us," Schulte said. "I don't think that that's much to ask. We want justice to prevail, so we certainly comply with all of our partners, just like we complied with the police investigation. Remember how everybody was hounding us about 'What's going on? There's rumors at Craig High School'?

"The police have it," she said. "Let them do their investigation. And I think they have the ability to do a better, cleaner investigation if we keep our fingers out of it. They're the experts, not me."

Schulte said Rock County District Attorney David O'Leary told her specifically to be cautious about how she talks about the case.

"If there are particular questions that come up or areas of comment, (O'Leary advised) that discussions either go to him or our own attorneys," Schulte said. "We've had many discussions with them lately because we want to comply with the law."

The Gazette contacted O'Leary via email Wednesday, asking how long the request that Schulte not comment would continue. O'Leary responded by citing these statutes:

—Supreme Court Rule 20:3.6: Trial Publicity states that a lawyer who is participating or has participated in the investigation or litigation of a matter shall not make an extra judicial statement that the lawyer knows or reasonably should know will be disseminated by means of public communication and will have a substantial likelihood of materially prejudicing an adjudicative proceeding in the matter.

—Supreme Court Rule 20:3.8(f)(2): Special responsibilities of a prosecutor states that a prosecutor in a criminal case or a proceeding that could result in deprivation of liberty shall exercise reasonable care to prevent investigators, law enforcement personnel, employees or other persons assisting or associated with the prosecutor in a criminal case from making an extra judicial statement that the prosecutor would be prohibited from making under SCR 20:3.6.

"These ethical obligations continue while the criminal matter is under investigation and/or pending before the court," O'Leary said in the email.

The Gazette reporter responded by saying he was not asking about the case, but rather how long Schulte will be under a gag order.

O'Leary responded Thursday, saying:

"Of course you are asking about the case. Your question...is how the thefts affected the victims of the crime. There is no gag order, only the prosecutor's ethical obligations to prevent bias to a potential jury as set forth below."

The Gazette reporter responded Thursday, asking what specifically O'Leary told Schulte not to say. As of Friday afternoon, The Gazette had not received a response.

Janesville police Detective Chris Buescher said Friday that the police department would have no new information until Warner-Reed makes an initial court appearance or a criminal complaint is issued.

"Eventually, all of it will get out," Buescher said. "Right now, with the court proceedings, we're really limited in what we can say."

The school district made its student activity accounts whole last summer by transferring money to them, according to a news release issued Wednesday by the district. It is unclear how that affected district operations.

Board member Bill Sodemann said the school board never voted on replenishing any accounts. It was done internally, he said.

"We never took a vote at all," Sodemann said. "Obviously, that would be an open session item and on the agenda."

Sodemann said he is unsure of the amount the district spent to refill the accounts. He said he didn't learn of the amount missing until recently.

"I'm guessing they're not going to tell us the entire amount," Sodemann said. "They don't want to be specific so they can catch as much as they can catch."

"The money raised by clubs had to be replenished, so the district has to cover that," he said. "I wouldn't expect a vote on that. Replenish it, then go after her, and maybe money comes back from insurance."

Sodemann said he is unaware of what new procedures, if any, the district is using to manage funds besides tweaks to the handbook.

"I'm not sure which points are new compared to which parts are being emphasized from before," Sodemann said.

"But I'm going to have more questions," he said. "I don't want to impede on the investigation, but I want to dig in when we can to find out what happened, what could have been avoided and how to avoid this in the future."

The Gazette filed an open records request Thursday, asking the school district for internal audits of Craig's finances, emails between district administrators about the embezzlement and memos to staff advising them not to speak publicly about the issue.

The request was denied Friday morning. School district attorney Julie Lewis said in a written response that "the requested records are related to a pending criminal investigation and are exempt" under state statutes.