Following her arrest last month for misappropriation of funds, the former treasurer of Mitchell Community Schools is being sued by the Indiana Attorney General for repayment of those monies.
Attorney General Greg Zoeller is bringing a $110,000 lawsuit against Kathy Kirk, who was treasurer of the school corporation through January of 2011.
Zoeller charges that Kirk used almost $80,000 of school corporation funds to pay for personal expenses such as restaurant bills, jewelry, cable TV bills, household appliances, and groceries.
Other misappropriations include missing deposits that were supposed to go into school bank accounts, along with thousands of dollars in penalties, interest, and other late fees associated with bills the school corporation had to pay after Kirk failed to during her tenure.
Zoeller is also suing Kirk for the cost of the state audit, which his office says is around $25,000.
In addition to the initial $110,000 being asked for by the state, Indiana law allows an additional penalty of up to three times that amount be levied against Kirk.
According to Zoeller, the school corporation was insured against the theft. The Attorney General’s office has named the insurance company in the suit. Any amount awarded to the state that is not covered by the insurance policy would be the personal responsibility of Kirk, Zoeller says.
Kirk is awaiting a criminal trial in Lawrence County, where she faces a ‘class D’ and two ‘class C’ felonies, relating to the misspent funds.