7/18/2006
Media Contact:
Kobi Wright, [317] 327-4055 |
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City requests investigation that leads to arrest of Indy Parks’ employee for fraud, theft
INDIANAPOLIS – An investigation requested by the Office of Corporation Counsel and the Office of Finance & Management (OFM) has led to the arrest of an Indy Parks & Recreation employee for several crimes involving the theft and transfer of city funds to her personal account.
The Office of Corporation Counsel, the city legal’s office, and the Office of Finance & Management, the city-county’s budget office, asked the Indianapolis Police Department (IPD) and the Marion County Prosecutor’s office last week to investigate the matter.
“As soon as these allegations were discovered, we acted to get the appropriate police and investigative agencies involved at once,” said Corporation Counsel Kobi Wright.
The timeline of events is as follows:
Friday, July 7: One of the city’s banking vendors, Chase, contacts the city about a recent review of the Indy Parks merchant processing account that detected unusual activity and specifically concluded that Indy Parks had been sending requests for credits to Chase for processing with no offsetting sales. OFM contacted Chase to follow up.
Monday, July 10:
- OFM continues conversations with Chase to determine the extent of the situation.
- OFM reviews city credit card activity internally.
- Chase risk management personnel explains to OFM that refunds were being credited to accounts for prior transactions that were not recorded at Chase.
- National City Bank contacts Indy Parks stating recent communications to the bank from Kenya Miles, a Parks accounting technician, had the bank concerned that suspicious activity may be occurring.
- OFM questions Kenya Miles, about the irregularities.
- Suspicions arose that Miles had possibly diverted parks money into personal accounts.
- City Legal contacts IPD’s Financial Crimes Division reporting a possible theft of city funds and asks IPD to open an investigation and contact National City to freeze all Miles’ accounts.
- IPD contacts National City. National City freezes Miles’ known accounts.
- City legal & Indy Parks takes steps to make sure Miles would not have access to her office or equipment.
Tuesday, July 11:
- City officials officially contact the Marion County Prosecutor’s Office and refer the matter to its office for further investigation and prosecution.
- The city begins reviewing all processes concerning interaction with city bank accounts and distribution of funds to third parties. OFM ceases the city-county practice of making electronic refunds.
- By day’s end, city officials fully brief the Prosecutor’s office on the possible criminal activity.
Wed., July 12 - Fri., July 14:
- A review of the employee’s history shows that she had been hired by Indy Parks in 1999.
- IPD and the Prosecutor’s Office conduct investigation. The city aids the Prosecutor’s Office in its investigation.
- OFM concludes after reviewing the Indy Parks’ refund process and a 2003 audit report of Indy Parks by the Indianapolis-Marion County Internal Audit Agency that additional oversight of the refund process called for in the audit was not fully implemented.
Thursday, July 13:
- Miles is arrested in Hendricks County. She cooperated with the investigation and confessed to stealing large amounts of money from the city.
- “Miles admitted to opening bank accounts with National City with the intent to commit fraud by fraudulently transferring funds from the Indy Parks Chase bank account into her personal National City Bank checking account. She estimated that between January 2000, to July 5, 2006, she had embezzled approximately $350,000.” (According to the probable cause affidavit, filed 7/14/06.)
- Miles is charged with official misconduct, theft and fraud against a financial institution. She was booked and questioned and later posted bond and was released.
Friday, July 14:
- The Prosecutor’s Office files a probable cause affidavit of criminal activity by Miles in court.
Monday, July 17:
Since she admitted criminal activity in previous interviews, the city fires Miles.
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Wright said that more information, as long as it does not compromise the ongoing investigation, would be released when appropriate.
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