LaPorte County reimbursed after embezzlement
NWI Times
Oct 20, 2016
http://www.nwitimes.com/news/local/laporte/laporte-county-reimbursed-after-embezzlement/article_e3601bc4-c39b-5379-93e2-4000afa0fbba.html
LAPORTE — LaPorte County is no longer in the hole for the $152,000 embezzled by a former public official whose actions driven by a gambling addiction landed her in a federal prison.
A check for the entire amount was presented Wednesday to the LaPorte County commissioners. The funds came from a county insurance policy covering such losses.
‘’The process was long, but we’re finally pleased to close the claim,’’ said John Klingenmeier, Michiana Insurance agent.
Originally, the goal was to get the money back directly from former LaPorte County deputy auditor Mary Ray, who was convicted of the crime, to avoid a rate hike on the policy.
However, many of Ray’s assets, like her house, were jointly owned, making them practically untouchable, said LaPorte County attorney Shaw Friedman.
Ray, 68, is serving a 7-year federal prison sentence handed down in March.
The state is seeking close to $300,000 from Ray for the $45,000 cost of its audit of county ledgers and to cash in on a state law allowing up to three times the amount stolen from a government agency to be recovered.
The legal action has not been decided, but LaPorte County has been replaced by the insurance carrier as a co-plaintiff trying to recover its payout on the claim.
Ray’s activities occurred in 2011 and 2012 and came to light after a bank bag containing cash and checks from the auditor’s office mysteriously turned up in a book depository at the public library in LaPorte.
The investigation shows checks and cash were often left laying around the auditor’s office for days while Ray was second in command under Craig Hinchman, who lost his bid for a second term to Joie Winski.
Winski after taking office in 2013 required cash and checks be promptly deposited instead of laying out in the open for extended periods.
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