Print

Email story

Comment

Email editor

Beach Art Center suspects embezzlement

The Sheriff's Office is looking into the possible theft of thousands of dollars by the money handler/bookkeeper.

By SHEILA MULLANE ESTRADA
Published September 28, 2005

INDIAN ROCKS BEACH - A longtime Beach Art Center employee is the subject of an official investigation into the embezzlement of thousands of dollars from the organization's bank account.

Although no arrest warrant has been issued, the Pinellas County Sheriff's Office is investigating the theft, which art center officials say has been going on for months, if not years.

The alleged embezzlement of "at least $10,000" was attributed by center officials to a part-time employee responsible for managing the organization's money and books. That employee has left the state, art center director Betsy Schoepf said.

The center's business manager often took work home with her, a practice Schoepf said she didn't like but tolerated because the employee had a full-time job at another nonprofit organization in St. Petersburg and could only work for the center in the evenings and on weekends.

"This is a shock," Schoepf said. "She was well known in the community. She had an excellent resume and was well qualified for the position."

Art center officials became suspicious only in recent weeks, Schoepf said, when a board member began questioning the employee about the organization's financial status.

"Two weeks ago she told me we had about $10,000 to carry us through the end of the fiscal year. But when she said at the board meeting that we only had about $1,000 left, I nearly fell over," Schoepf said.

During a subsequent internal investigation, art center officials discovered that the employee had been forging organization checks, was taking money out of petty cash, and even issued herself an ATM card.

"There was a whole mishmash of ways she used us as her personal bank. She has simply decimated our cash reserves," Schoepf said.

The Beach Art Center, at 1515 Bay Palm Blvd., began in 1978. Over the past decade it has grown into a city cultural institution offering art classes and workshops. The center also sponsors the city's annual Beauty and the Beach arts and crafts show in Kolb Park.

Art center officials have tracked the alleged embezzlement back six months but suspect it may go back as much as four or five years to when the employee was first hired.

The economic crimes unit at the Sheriff's Office is investigating the alleged theft.

Spokesman Mac McMullen said Tuesday that the investigation was in the "very preliminary" stage and that no arrest warrants had been issued. McMullen declined to identify the target of the investigation, citing department policy not to release a suspect's name until a warrant has been issued.

"We are just beginning to look into this, but we believe there will be more information concerning other monies taken," he said. The initial report shows that four checks totaling $711 were "taken and signed."

Schoepf said revenue from art center events often was less than anticipated but that no one questioned whether there had been misconduct.

Because the center's annual budget is less than $100,000, there was no requirement for an official audit under the terms of its various grants. That will change, Schoepf said.

The center has also discovered that state and federal tax forms were not properly filed and may force the organization to pay penalties.

"We will survive," Schoepf said.

When news of the theft of thousands of dollars from the Beach Art Center bank account became public last week, shocked town officials pledged to accelerate payment of the $32,400 it recently budgeted to support the center's activities.

"Oh, gosh," Mayor Bill Ockunzzi said when Schoepf told the City Commission of the "unpleasant situation."

"It appears that it could go as high as $10,000 or maybe more if we ever get to the bottom of it. I have gone through every gamut of emotions that anybody could possible go through on this," Schoepf said.

"I am stunned," said Commissioner Jean Scott, who has been an active member of the art center.

"It takes a little magic out of things," Commissioner Jim Palamara said.

[Last modified September 28, 2005, 12:15:55]