LONDON—A bookkeeper for former Whitley County Sheriff Lawrence Hodge admitted in federal court today that she assisted the sheriff in embezzling and laundering hundreds of thousands of dollars from the sheriff’s office.
Abby Vicky Paul, 51, pleaded guilty in front of U.S. District Judge Gregory Van Tatenhove to embezzlement from a local governmental agency receiving federal funds.
Hodge pleaded guilty last week to charges related to money laundering, extortion, and drug distribution.
In her plea agreement, Paul admitted that from 2003 to 2008 she helped Hodge embezzle and/or launder a total of $222,914 from several different accounts belonging to the Whitley County Sheriff’s Department.
Under Kentucky law, the sheriff’s department is responsible for collecting all state, county, county school district, and other property taxes within a given county.
Paul admitted that she altered records related to the payment of property taxes by the citizens of Whitley County in order to create a false surplus of money in the department’s tax account. Paul did this with the knowledge and consent of Hodge. At the end of a given reporting period, typically every month, both Hodge and Paul took a portion of the excess money.
According to court documents, in 2007, Hodge’s police cruiser burned in a fire at his residence. Paul admitted she and Hodge agreed to use the incident as an alibi for having records related to the tax account destroyed.
Paul also acknowledged she helped Hodge steal money from the department’s drug and alcohol fund. Money donated or forfeited to the department in connection with criminal cases was placed in this fund to be used to make controlled drug buys, pay informants, and to further other similar law enforcement objectives.
Instead, Hodge directed Paul to write checks from the fund for one of these legitimate purposes, when in reality he was cashing these checks and using the money to further his own drug habit and for other personal expenditures. Paul knew that Hodge was improperly taking these funds for his own personal use.
Paul further admitted that Hodge permitted her to shift money from the department’s fee account in an effort to cover up any deficits to both the tax and drug and alcohol accounts. Paul’s plea agreement states that she admits to assisting Hodge in embezzling approximately $58,480 from the fee account in this manner.
Finally, Hodge also authorized Paul to alter the office’s accounting records and to falsify reports and other required paperwork to conceal their criminal activities.
Kerry B.Harvey, U.S. Attorney for the Eastern District of Kentucky; Paul J. Vido, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives; Elizabeth A. Fries, Special Agent in Charge, Federal Bureau of Investigation and Darryl Williams, Special Agent in Charge, Internal Revenue Service jointly made the announcement today.
The joint investigation was conducted by agents with the ATF, FBI, and IRS. The U.S. Attorney’s Office was represented by W. Samuel Dotson. In addition, the investigating agencies received special assistance from the Kentucky State Police, the Williamsburg Police Department, Crit Luallen’s Office for the Auditor of Public Accounts for the Commonwealth of Kentucky, and Whitley County Commonwealth Attorney Allen Trimble’s Office.
Posts
No comments:
Post a Comment