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Sunday, October 09, 2011

Ind. Gov't. - "AG files suit in three counties after audits found money was misappropriated"

Two stories from Oct. 4th:

Today the NWI Times has an editorial, aptly headed "Many lessons from town court scandal," that makes a number of good points:
The Merrillville Town Court scandal has many facets, but today's discussion involves just a few of the lessons to be learned.

Virlissa Crenshaw has been accused of pocketing more than $310,000 in bond money over five years while an employee of the court. A State Board of Accounts audit identified her, and she was fired in early April.

Last week, Indiana Attorney General Greg Zoeller filed a civil lawsuit against Crenshaw, seeking repayment.

Lake County Prosecutor Bernard Carter recused himself from the case because Crenshaw is his niece.

Carter had no choice, ethically, but to recuse himself from the case involving a relative. He brought in state police to investigate after hearing about the firing.

It is to Carter's credit that he asked the LaPorte County prosecutor to serve as a special prosecutor in this case to further distance himself.

That special prosecutor is handling the criminal side of this case. Zoeller is handling the civil aspect as the state's collection agent.

Because of this case, along with the 33 other recovery actions involving public funds since Zoeller took office in 2009, we support his legislative push to require two signatures for all major expenditures in all municipalities, not just large cities such as Indianapolis, Gary and Hammond. The opportunity for fraud must be reduced.

This is an action that must be taken by the Indiana General Assembly. It should do so in the next legislative session to protect public funds from future opportunities for fraud.

Yes, it will require extra work to get the extra signature. Zoeller acknowledges that.

"It's a hassle to collect that money, too," Zoeller said last week.

Finally, the Merrillville Town Council should look at the operation of the court itself.

The Town Court, it has been said, costs more to operate than it takes in. So why does Merrillville continue to operate the court?

Instead, the Town Council should talk with Crown Point and other communities to work on a consolidation plan for a court that generates enough revenue to support itself without charging excessive fines. Barring that, shut down the court and let the county's courts take over those responsibilities.

But don't let the Town Court be a financial drain.

Finally, see the long news release from AG Zoeller dated Oct. 4. It details the suits filed to recover public funds that the State Board of Accounts found were misappropriated, and includes links. A quote:
"When only one individual handles the public money in a government office without oversight or financial controls, it's often a recipe for misspending or embezzlement. That's why I will ask the next session of the Legislature to pass a bill to tighten state law, and require dual signatures before certain expenditures can be made. Review by a second person would help deter some of the outrageous embezzlement schemes we see in audits," Zoeller said.

Posted by Marcia Oddi on October 9, 2011 10:49 AM
Posted to Indiana Government