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November 12,2003 THE NEWS-JOURNAL Raeford, N.C. 9A f j ir ! Commissioners, employees testify for prosecution at embezzlement trial By Victoriana Summi-.rs Staff writer Unexplained salary increases, checks allegedly forged, unapproved travel stipends, and a personal bank statement that coincided with acounty check castled were just a few high lights of evidence presented to the jury at the Bernice McPhatter em bezzlement trial. The Rev. Tony Hunt, former I loke county commission chairman, and Cleo Bratcher Jr., also a former countv commission chairman, told the court last week that the board of commis sioners never approved any travel sti pends for McPhatter. In her employ ment contract, McPhatter was pro vided with a county vehicle, cancel ing any need for travel stipends, ac cording to them. McPhatter is charged with the embezzlement of $269,()()() of county funds, including more than $2(),()()() in unauthorized travel stipends she allegedly received illegally. In cross-examination of Hunt, Raeford attorney Gregory Thompson, McPhatter’sdefense attorney, tried to discredit Hunt’s testimony. 'I'homp- son also attempted to indicate that Hoke Commissioners James l.each may have authorized .McPhatter to receive travel stipends. “Didn't you tell her (McPhatter) you would tell the truth?"Thompson said to Hunt. “That you would tell that Mr. Leach gave her permission about the travel stipends? " “No,” Hunt said. In earlier testimony, Bratcher brother of McPhatter, saidtoNewtoi: “It was understood that he (McPhatter) had a vehicle and vould not have a travel stipend." Newton said, “So you give her (McPhatter)acar when you Rok away the travel stipend?" Bratcher firmly said. Yes. I did not know she was still r-ccir ing it. According to recor'S. McPhatter initially received a mi bhly travel sti pend of $120 until s'P was olticially appointed county rpniager. I lunt and Bratcher indicatecthey did not know McPhatter increbcd her travel sti pend to sometims as much as $3.()()() in one month. Bratcher sad he had no concerns prior to McPattcr's resignation in October 20CO when she formerly served ascoily manager and finance officer. "I knew she could do the job," Bratcher said. “I felt she should have checks and balances. As a chairman, you have a responsibility to ‘ride lierd." Newton Siiid in response, “Did you ever persoiiiilly check behind your sister?" "No ma'am." Bratcher s;iid. Bratcher recalled on October 11, 2001 w hen he was called to the office of Riieford C'PA h'rank Baker, tiiiditor for Hoke's annual tiudit, ('ounty At torney Neil Yarborough was also present. I le was show n checks alleg edly embezzled by McPhatter, and was told they w ere discovered during a routine audit. "1 saw a S.S.OOO cheek written to Mrs. McPhatter, and I tltink there was one for $7,.S0(),'' Bniteher said. “'Hie checks were drawn on the ('ounty of Hoke. “I asked them to go to Mrs. McPhatter for her ta gi\ e information oti what they vvert ' liven though 'Jratcher was chair man, he said he did not want to con front hissisteroutof"brotherly love." "Ididni'i know what I would say," Bratcher siid. A peiplexed Hunt stiid when he learned.if the alleged embezzlement he was“shocked'' and so was Leach. He Slid he noticed in exiimining the $5,ll)()check that the signature of the coiimissioner (I.eaeh) that ticcompa- ncdhersignaluredidnot look likehis dgnature. "It appeared to be an off-line check," Hunt s:iid. "It did not appear to have been run through a machine. "That would mean the check was produced in another wtiy," he said. “I knew we paid her everv two weeks, and 1 knew there was no way it was a pay check, I could not imag ine whtit w e would have to reimburse someone for that amount," Hunt said several days later, after she resigned, he w ent tosee McPhatter at her home to seek answers. She was not there. Her liushaiid. Malcom McPhatter. invited Hunt to look at one of the couple's bank statements. “I was shocked," I lunt said. “1 saw a deposit amount for $.‘i,()0().'' After testifying last week. Hunt said yesterday out of court that he never spoke to McPhtitter once she resigned. After he saw her bank state ment allegedly coincided with the check she allegedly wrote of county funds, hecould not face her. “I had wanted to believe she did not do it," I lunt said yesterday. “I was trying to give her the benefit of the doubt." Employees testify I'ormer county finance employee, S:ibrin;i Bauld, who returned from Kansas to testify for the prosecution, and Hoke finance technician Allison Walter testified how' they found the check lor $.S,0(H). Bauld said she and Shirley Rush, then Hoke’s finance ditector, initially discovered a check mi.ssing during the audit and uncov ered the $5,()()() check. "‘Mrs. Rush found the discrepancy in one of the checks from the bank st;itenients," Bauld said. “1 could not find it. Mrs. Rush went downstairs and pulled out the origintd check. ‘"It was a handwritten check. The signature of the chairman was not tioriii;il.'’ Bauld said she made copies for Rush and Wtdters and put the origi- imls back. Because Bauld was a less experienced employee, she wanted them to retain copies, she said. The check w as deposited into the county s iiccount. "‘I brought it (McPhatter’s check) to Allison’s attention of the S5,0(K),” Bauld said. Walters apparently notified finance auditor Scott l-.dwards, who was as- sistitig in the audit for Frank Baker CPA. I'.dwardscontacted Bakerabout the alleged discrepancy and subse- i|uent bank deposit of McPhatter’s check. During testimony, Walters told the court she was familiar with the signa ture of McPhatter, verifying on some of the checks entered into evidence that they iippeared to be the signature of McPhatter. Newton asked Walters why she told I'dwards about the check. " I was afraid if I did not it would never be told," Walters said. In cross-examination of Bauld, Thompson, questioned if the signa ture machine could be manipulated, or if someone else h;id access to the bank vault to obtain signature stamps. However, in testimony on Monday, Newton demonstrated that the county checksallegediv written by McPhatter to herself were deposited into her personal accounts. Rush was indicted in August 2002 for accessory after the fact in connec tion with the embezzlement because she allt^gedly accepted a check from AdvancelSi AutoPartsl^i Dr. Check-lt! ' TM Or/nif s anef When: Saturday, November 15,2003 Time; 10^10 am until 2d)0 pm We Will Check And Fill "FREE” All Of The Following Fluids* CHECK / ■ Check Oil Level...Fill If Needed..,Use Advance Oil ■ Check Transmission Fluid Level... Fill If Needed... ■ Check Washer Fluid Level...Fill If Needed ■ Check Tire Air Pressure... Inflate If Needed Advance!^ AutoPartsIS^ 307 Fayetteville Road • Raeford • 875-2616 Store Hours: Monday - Saturday 8:00 am - 8:00 pm Sunday 9:00 am -- 6:00 pm McPhatter to replace the county check. She is still waiting for a trial dale on the charge. Linda Revels, clerk to the board of commissioners and former assistant to McPhatter, testified last week. She told the court she expressed doubts to McPhatter when she planned to pro mote Rush from assistant finance of ficer to finance director. Revels said she socialized with McPhatter and also worked professionally with her. “I told Mrs. McPhatter, in my opin ion, that Mrs. Rush was not qualified to be finance director,” Revels said. “I told her that I agreed with (Commis sioner Charles) Daniels that applica tions should be taken for the job and the best applicant should get it. “Mrs. McPhatter said she thought Mrs. Rush could do the job.” Revels said she noticed after Rush took over as finance director that McPhatter continued to do “a lot” of the finance work. “I did have a conversation with Mrs. McPhatter,” Revels said. “I told her I was concerned about herdoinga lot of financial work, and that she should be running the day-to-day op eration. “Mrs. McPhatter said she was try ing to help Mrs. Rush get caught up.” Walters also told the court of in creasing amounts on travel stipends McPhatter received from January 1999 to October 2(M) I. Some stipends jumped form $500 to $1,500 up to $3,000. At one point, McPhatter ap peared lobe receiving travel expenses bi-monthly and sometimes even sev eral months in advance, Walters told the court. ‘1 went into Mrs. McPhatter’s file to try to backtrack to see what moneys she had been paid for, but it was confusing,” she said. • Never asked Walters said she never asked McPhatter about the discrepancies becau.se she was “her boss.” She said Miriam Bratcher, Hoke payroll tech nician, allegedly signed some of the requests for McPhatter’s monthly sti pends. Miriam Bratcher is married to the cousin of McPhatter, according to Cleo Bratcher Jr. F.dwards, now employed as Hoke’s finance director, said after the $5,000 check was found that he went through county records and found “additional” checks written to McPhatter that were “questionable.” Fdwards said the sig nature of McPhatter appeared to be “legitimate,” but the signature of Leach appeared to be “forged.” In further testimony, Hoke Human Resources Director Jean Wade told the court of change orders for McPhatter’s salary that appeared to have gaps, or change orders missing. In October 1995, McPhatter, who served as deputy finance officer to the finance director, received a raise from Hoke finance technician Allison Walters (left) and Sabrina Bauld, former county finance employee, wait their turn to testify. $25,524 to $29,115. Then in a change order in April 1996, McPhatter’s sal ary was increased to $32,099, but the next change orderdated October 1997 signified McPhatter was already re ceiving $40,592 in salary. This was an unexplainedjumpof $8,000. In the same change order, McPhatter’s sal ary was subsequently increased to $41,607. At the time MePhater re signed in October 2001, her salary had risen to $80,483, according to Wade. The trial is anticipat' d to end likely by Tuesday, depending on the length time and number of witnesses the defense will call. McPhatter trial (Continued from page I A) and subsequently deposited them into her savings and checking accounts. Jurors leaned forward intently when Newton discussed a separate transaction of $25,155, a check alleg edly written by McPhatter in Decem ber 1999. “Were you able to trace any of the stolen $25,000?" Newton asked Pinkston as defense attorney Gregory Thompson objected to the question. “Yes, ’ Pinkston replied. Unraveling the money allegedly spent or invested by McPhatter, Pinkston said $ 10,000 of the proceeds was used to make a down payment on a Ford Expedition at the Auto Store in June 20(K). A portion of the proceeds was also to purchase a certificate of deposit at her bank for $5,000. Prosecutors alleged that after McPhatter deposited a county check of $3,032 into her bank account in January 1999, she also purchased a Chevrolet van from Reed-Lallier Chevrolet in Fayetteville. She wrote the auto dealership a check for $3,000 for a down payment — funds directly linked to county moneys, Pinkston alleged. Other witnesses were questioned by Newton, including Patty Williams, branch operations specialist for BB&T; Margaret Crumpler, Centura Bank’s manager; and Amy Viverette, Centura Bank operations specialist. At one point, Williams had so many checks to verify of McPhatter’s that she held up checks in both hands in the witness box. She revealed a pat tern of county checks deposited by McPhatter as far back as 1995 before United Carolina Bank merged with BB&T. She confirmed the checks of county funds allegedly embezzled were deposited into joint bank ac counts maintained by McPhatter and her husband, Malcom McPhatter. Seldom lookingatthejury orjudge, a downcast McPhatter took notes of the trial proceedings, displaying no emotion. She only glanced over her shoulder to peer at the large projec tion screen where Newton and the jury reviewed the alleged illegal checks. Newton inquired of Pinkston as McPhatter greets some supporters at her trial in Cumberland Count)r. check after check was shown, “Did you note anything unusual in regards to this particular check?"’ Pinkston continued answering, "‘Yes.” She told Newton how the original county checks for which McPhatter was designated as payee — most dis covered in the county’s storeroom — did not match up to the payees found on county trial-balance checks or car bons of the checks retained in finan cial records..On at least seven checks, Pinkston said, SBI handwriting ex perts determined the signatures of other county officials as the second required signature were forgeries. Hoke finance employees were ap parently not aware of any financial misdealings that may have been com mitted by McPhatter. The county’s copies of checks indicated payouts to numerous vendors such as the North Carolina Association of (bounty Com missioners, Pitney-Bowes office ma chines, Raeford CPA Frank Baker, who audits the county financial records annually. Pinkston said all of the vendors confirmed they never re ceived the payments of those county checks. Instead, McPhatter endorsed them to herself and deposited them into her bank accounts — sometimes taking out cash from the transactions, Pinkston said. Accused with crimes committed as a public officer between 1994 and October 2001, McPhatter is charged with felony offenses that include four counts of embezzlement. She is ac cused of steal ing more than $269,000, encompassing travel stipends and county funds. McPhatter, 47, is also charged with 64 counts of forgery and uttering of county checks between July 1994 and November 2000. She served dual roles as county manager and finance director — a practice auditors say contributed to any malfeasance. During the trial on Monday, Th om pson occas ional 1 y ra i sed object ions to some testimony. As the afternoon testimony continued, he took detailed notes and frequently approached the bench with Newton to confer with Superior Court Judge Jack Thomp son. Coca Cola Products 2 Liter Bottles 79* 6 Pack Cans $4 39 Low Prices * Fast & Accurate Service BAf^ HOMETOWN V PHARMACY MART 415 Harris Avenue • Raeford • 875-6111 Monday-Friday 9 am - 6 pm Saturday 9 am - 1pm
The News-Journal (Raeford, N.C.)
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Nov. 12, 2003, edition 1
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