The Masonville city clerk pleaded not guilty Thursday during her initial appearance in federal court on charges related to embezzling more than $80,000 from the city by inflating payroll and expense reimbursement checks for about nine years.
Christine Anne King was indicted on two counts of mail fraud. She is accused of defrauding the City of Masonville by issuing herself unauthorized and fraudulently inflated payroll and expense reimbursement checks from July 2002 to October 2011, according to the indictment.
The amount of alleged funds was not included in the indictment or other court documents filed Thursday, but according to a state auditor's report in February 2013 more than $80,000 was misappropriated.
The city maintained four bank accounts at a Manchester bank and all the statements were sent directly to King, according to the indictment. The city council didnít see the actual bank statements, but instead, they would review monthly reports prepared by King that summarized the balances of each account.
According to the indictment, King, as the city clerk, was responsible for managing the cityís payroll and bank accounts, preparing and signing checks for the city, and making regular reports to the council, which included the balance summary of the accounts. She also issued her own paycheck, as well as checks to reimburse herself expenses like travel as part of her employment.
King, also as part of her duties, prepared a yearly financial report for the city and one for the state auditor. Fraudulent 2009 and 2010 financial reports were sent to the auditor, according to the indictment.King will be on pre-trial release pending her trial set May 19, in U.S. District Court.