After an investigation by Indiana State Police, Brown County Clerk Kathy Smith has been charged with misconduct, a level 6 felony, and two misdemeanors–theft and deception.
A probable cause affidavit, filed by ISP’s David Makowsky, alleges that Smith was using her county issued credit card for personal purchases.
An investigation began in summer 2020 after Smith failed to provide receipts corroborating purchases she made with the card for that May and June, according to the affidavit. When the receipts were obtained, there were purchases on them that didn’t appear to be for official purposes.
The affidavit said Smith was required to fill out an voucher at the end of every month listing what was purchased with the card and where, for Auditor Julie Reeves.
Makowsky wrote in the affidavit that he asked Reeves to review all the vouchers Smith had submitted since taking office in January 2019.
Payment Inconsistencies
On a voucher Smith submitted in July 2019, she said she’d spent $21.42 on protective binder sleeves. But the receipt listed $5 for candy, $2.27 on pens, $1.27 on sticky notes, and another $10.78 on candy.
The main voucher in question is from May 2020, according to the affidavit. The voucher claimed $20.06 spent for election items at Family Dollar. The receipt listed $3.25 for bleach spray, $5 for Dulcolax laxatives suppositories, Dulcolax 5 mg tablets for $6.00, FW magnesium citrate cherry 10 fluid oz for $1.50, orange juice for $2.00, and $3.00 for Turtle candy.
The auditor also received an invoice for three purchases made between May and June of 2020.
One purchase, from Sam’s Club for $161.86, was for grocery items and a bathmat. The purchase was made two days before the June 2 election.
The other two purchases made during that time were from Staples, and no receipts were provided.
Two receipts submitted were labeled “vote night” on a voucher she submitted. Both were from Party City, for $85.51 and for $131.25. Items on the receipts were for balloons and table cloths.
On Oct. 8, 2019 new voting machines for the county were presented to the public and local vendors. Board members said they didn’t remember decorations present at that event.
ISP Interview with Smith
Makowsky questioned Smith in the breakroom of the Brown County Prosecutor’s Office on Oct. 20, 2020. The interview was recorded.
Makowsky asked Smith to explain the “vote night” purchases during the interview. The affidavit said she told him the Party City receipts were for the October 2019 event – which she said had a red, white, and blue theme.
According to the affidavit, Makowsky went through most of Smith’s voucher and card history with her – asking her to explain points where receipts were missing or didn’t match the vouchers she submitted.
Smith paid the auditor back for some past purchases made on the card. She told Makowsky she did that because she struggled to keep receipts and got tired of the auditor asking her to turn them in.
She told Makowsky that the $161.86 Sam’s Club purchase made before the June 2 election included food for the election board and her staff working that day. According to the affidavit, she said the bathmat was to cover a piece of metal sticking out at the high school gym, where the elections were held, so no one would get hurt on it.
The May 2020 Family Dollar purchases, which included bleach spray and laxatives, had been a mistake, she told Makowsky. She had made these purchases on the same day she purchased paint pens and permanent markers for elections, and she said purchasing them on the county’s card had been a screw up – according to the affidavit.
The Brown County auditor told Makowsky that Smith paid the Family Dollar receipt back on Oct. 21, 2020.
Makowsky said in the affidavit that even though Smith’s expenses in the Family Dollar purchase were minimal, she had displayed a pattern of mislabeling vouchers or not turning in receipts for purchases made on the county’s card.
Smith didn't immediately return a message Friday afternoon.
She was not represented by an attorney as of Friday, according to online records.
