First hearing set for Marion Co. embezzlement

A preliminary hearing is planned at 10 a.m. Wednesday, Nov. 7, in the District Court of Marion County on the alleged embezzlement by the former Marion County Economic Development director Tina Huffman, 68.

The complaint was filed Oct. 4 in the District Court of Marion County by Courtney Boehm, county attorney.

In an affidavit filed by the district court, Marion County Sheriff Robert Craft, provided a written statement as to why Huffman is allegedly being charged with the misuse of public funds totalling $46,871.

Craft stated he was notified on May 22 by county clerk Tina Spencer, who discovered that money from the Leadership Marion County Foundation and the Marion County Children’s Foundation.

“I inquired of the Kansas Bureau of Investigation,” Craft stated, “(to see) if they would have someone available to assist with this investigation.”

At that time, no agents were available.

During Craft’s investigation, he said, he called the Central Kansas Foundation, responsible for funding the Marion County Leadership Foundation and the children’s foundation.

After determining where the funding was from, Craft then stated he contacted the Citizens State Bank in Goessel, which was the checking account holder for both groups.

“I spoke with Peggy Jay at Citizens State Bank in Goessel, and was told the account for both of those foundations had been closed some time ago,” he stated.

Further research resulted in checking account records of the Marion County Leadership Foundation and the Marion County Children’s Foundation on July 11.

Craft stated he subpoenaed those records from Citizens State Bank of Mound­ridge, which is the parent company to the Goessel bank.

Once he received the records, Craft said, he retrieved a check written March 14, 2016, from the Leadership Marion Bank account for $38,411 and payable to Flint Hills Resource and Development.

From Goessel to Florence

That check, he stated, was then deposited into Cottonwood Valley Bank, Florence, as the Flint Hills Resource and Development account.

Once all the funds were depleted from the Citizens State Bank, the LMC account was closed April of 2016 at Citizens State Bank.

Craft said he then requested another subpoena for Cottonwood Valley Bank in Florence inquiring about the FHRC&D concerning recent transactions.

Records indicated that on March 14, 2016, a check in the amount of $38,411 was received from LMC from Citizens State Bank of Goessel. On March 29, 2016, two checks from the Central Kansas Community Foundation in the amount of $4,229 each were also deposited into the Cottonwood Valley Bank in Florence.”

Craft said the account in Florence had no further action until May 1, 2018 with all deposits made by Huffman only.

Check made to Huffman

Then on May 1, a check for the amount of about $46,871 was written by (Teresa) Huffman and made payable to (Teresa) Huffman.

“The check was then deposited into an account with the Central National Bank in Marion,” Craft said.

Another subpoena was received for the Central National Bank in Marion, he said, requesting the records of the account in which the check for $46,871 was deposited.

Public to private account

The check for $46,871, which was made to Flint Hills Resource and Development, and payable to Teresa Huffman was deposited into her personal account.

“Bank records indicate,” Craft noted, “the check was deposited through the drive-up window at the Hillsboro branch of Central National Bank with a video obtained of the transaction.”

The video, he said, clearly shows it was Huffman who was the sole occupant as the transaction was made.

Former LMC member

Todd Heitschmidt, president of Central National Bank in Marion, and a former graduate of LMC, was asked by Craft if Huffman’s transactions were within the scope of LMC.

Heitschmidt said it was not acceptable.

“Bank records also indicated that a check was written from Huffman’s personal account on May 1 to Chuck Hill for $14,000,” Craft stated.

“This brought the total amount remaining in Huffman’s personal checking account to an amount below $46,871.”

What is LMC?

Leadership Marion County is a not-for-profit foundation funded through public funds and Central Kansas Community Foundation for specific mission purposes within Marion County, Craft stated.

The Flint Hills Resource and Development Foundation is also non-profit, using state and federal funding for specific programs within Marion County and Central Region of Kansas.

“Both foundations have been dormant for several years with no official meetings or agendas; however, they are both still currently listed as not-for -profit organizations in official standing,” he said.

Listed as the president of both LMC and FHRC&D, Huffman was the authorized signor of all checks and had access to both accounts.

KBI gets involved

The Kansas Bureau of Investigation offered its assistance in late July. Agents involved were Marvin Franklin and Greg Skelton, who interviewed potential witnesses and Huffman.

In one of those interviews, Huffman confirmed that towards the end of her career she was the person solely responsible for the funds of the LMC and FHRC &D because both were no longer active, and hadn’t been for many years.

In the audio interview, Huffman also stated she did deposit the check in the amount of $46,871 from FHRC&D into her personal account.

Huffman talks

Huffman stated to KBI officials that some of the money was used to buy a trailer house at 21 Fisherman Lane at the Marion County Park and Lake, and other money was used to buy a camper.

The audio interview also stated that Huffman made many statements that she just needed to pay the county back, and that no other persons were involved with this or influenced her decision.

Level 7 Nonperson felony

The misuse of money, the complaint alleges, that at least $25,000, but less than $100,000, is in violation of KSA 21-6005, a severity level 7 nonperson felony.

Huffman was released on a $10,000 surety bond earlier in October.

If a defendant has no criminal history, committing a severity level 7 nonperson felony would likely receive a suspended prison sentence of 11-13 months.

Based on the guidelines, a defendant would likely be placed on probation for 24 months. However, if the defendant didn’t complete the probation, they could end up serving the underlying prison sentence of 11-13 months.

The court could impose restitution along with the probation.

Huffman was hired in November 2006 as an economic development secretary with her background in banking, according to a report in the Free Press, and four years later, she was the first economic development director.

As a secretary, Huffman served on the Marion County Economic Development Council, which at that time was made up of 26 voting members based on the size of the city.

The matter is being investigated by the Marion County Sheriff’s office and the Kansas Bureau of Investigation.

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