Catoosa Embezzlement Scandal

Former municipal court clerk Phyllis Matthews was named in a special state audit report. The report alleged that more than $48,000 in City Court funds were embezzled over a 40 month period. Auditors reported that a cash-check replacement scheme was carried out by voiding traffic citations and then inserting the checks and money orders into deposits and removing the corresponding amount of cash. In 24 cases, the citations had been voided by the court clerks computer system and the receipts issued by Matthews. Matthews was a 17 year employee of the court and a trusted employee. The mayor also indicated that he thought that there was in place a system of couble checks to avoid a scheme like this one. The auditiors pointed out however, that it is hard to detect unless you're actually looking for it. The cash drawers always balanced at the end of the day but the scheme of substituting and voiding checks was missed. The municipality is working to install and electronic system that would prevent  a person from touching, deleting or voiding a ticket. No criminal charges have been file against Ms. Matthews but the City of Catoosa has filed a civil suit against her in connection with the embesslement scheme.