Audit uncovers secretary/treasurer’s embezzlement

The former secretary and treasurer of Paupack Township in Wayne County, Pennsylvania, recently turned herself in for arraignment on charges of theft, forgery, receiving stolen property, unlawful use of computer and theft by failure to make required disposition of funds received, according to The News Eagle.

An internal investigation was conducted after Township officials began to notice discrepancies in deposits last August, and a local accounting firm was subsequently brought in to carry out an accounts payable audit. According to police, Joann K. Kelley allegedly wrote extra payroll checks to herself, forged the signature of the chairman of the township's board of supervisors, failed to make deposits, used the township's accounting software to create fraudulent checks made payable to herself or her husband and altered records to cover her tracks.

The audit found that a total of more than $76,500 had gone missing between 2003 and 2011, the paper says, and Kelley allegedly admitted to township supervisors and an attorney that she was responsible. She had been working for the township since 1988.

Kelley was released on $100,000 unsecured bail, according to WNEP-TV.

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