The Clay County Prosecutor's Office filed formal charges against Tracy Webster, 42, Brazil, in Clay Superior Court Wednesday afternoon.
Webster turned herself in at the Clay County Justice Center Tuesday after an arrest warrant was issued on allegations she mishandled municipal funds while employed with the City of Brazil.
On Wednesday, Webster was formally charged with one class C felony Forgery and three class D felony Theft charges.
The charges stem from a five-month joint investigation by the Indiana State Board of Accounts (SBOA) and Indiana State Police Criminal Investigative Division. According to the SBOA report, Webster was allegedly involved in unauthorized vendor payments, plus overpayment of compensation and/or benefits on numerous occasions between May 4, 2007 and Nov. 21, 2008.
Although the SBOA investigation was initially a review of financial information from Jan. 1-Dec. 31, 2009, after finding various negative balances and discrepancies records from previous years were reviewed in an attempt to uncover any other inconsistencies.
A total of $19,550.54, which includes a $6,500 reimbursement to the State of Indiana for additional audit costs incurred due to the investigation and approximately $11,500 in public funds allegedly diverted for personal use, was attributed to Webster's alleged mismanagement of public funds.
ISP Det. Sam Stearley presented a 15-page probable cause affidavit to the prosecutor's office, which was used by Clay County Prosecutor Lee Reberger to determine which charges to file in the case.
According to court documentation, an initial hearing has been scheduled in Webster's case for March 7.