COOKS - State police have been investigating the alleged misuse of funds by Big Bay de Noc School's former business manager, accused of embezzling more than $800,000 from the district.
The investigation, which began on Jan. 14, uncovered several discrepancies in the district's finances which police attribute to the former employee illegally converting school monies for personal use.
Since the investigation began and prior to an arrest, the business manager died, said Det. Sgt. Gretchen Voltz of the Manistique State Police Post.
Investigation of the alleged criminal activity began the same day the superintendent notified police, Voltz said. A search warrant was served on the records of the business manager, who was cooperative, she added.
Within a week of reviewing records, officials were able to uncover a substantial amount of funding discrepancies and also interviewed the suspect, the detective said.
"Investigation confirmed the business manager acted alone in this act, embezzling in excess of $800,000 over the last five years," Voltz stated. She explained this is the amount which can be proven with bank records available from the past five years.
"We may never know the exact amount taken," she added. "It could be much more than we stated."
Prior to the business manager's death, police were considering federal embezzlement charges against the former employee, said Voltz, adding the investigation remains open. "We're waiting for the school to come up with a final tally....number-wise," the detective said.
Police are also waiting for a report from the U.S. Secret Service. Secret Service personnel happened to be in the area at the time, collecting information to determine if a financial investigative bureau could be developed here, she said.
"Due to the impact this kind of financial loss can have on a small community and the financial aspect of the crime, the investigation was joined by the U.S. Secret Service," Voltz said.
Once all the reports are compiled, the information will be presented to the local prosecutor for review, the detective explained. If there is no reason to keep the case open, it will be ruled closed, she said.
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Jenny Lancour, (906) 786-2021, ext. 143, jlancour@dailypress.net