HENRY COUNTY -- The former clerk treasurer for the town of Kennard has been indicted on three counts of wire fraud.
Karen Stanley is accused of stealing more than $80,000 in taxpayer money by overpaying herself while in office, from 2012 to 2015.
The town of Kennard has a population of just under 500 people.
A warrant will be issued for Stanley’s arrest, but she is not yet in custody, according to Tim Horty, spokesperson for the US Attorney’s office.
According to an audit just released by the State Board of Accounts, Stanley also racked up unnecessary payroll taxes, penalties and interest.
The State Board of Accounts said the special investigation into Kennard’s financial books cost them an additional $13,932.
The audit also criticized the town for not having adequate checks and balancing in place, including allowing Stanley to make financial entries to the accounting system without any prior approval.
The FBI and Indiana State Police conducted a criminal investigation which led to the wire fraud indictment.
In a written response to the State Board of Accounts, the town of Kennard’s new clerk treasurer Sharon Elliott said they are taking steps to make sure this doesn’t happen again.
At its February 3 meeting, the town council adopted an ordinance regarding financial shortages or thefts, and in the future a council member will meet regularly with the clerk treasurer to look at the claims ledger and budget.
The State Board of Accounts has ordered Stanley to pay $103,145 for salary overpayments, penalties, interest, taxes and special investigation costs.
Call 6 Investigates was unable to reach Stanley for comment Tuesday afternoon.
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