Former Elgin city clerk accused of embezzling over $131,000

A former Elgin city clerk was charged Wednesday for stealing over $131,000 from Oct. 1, 2017, through June 20, 2021, including giving herself an additional $104,000 in pay, according to a special investigation report released earlier this month.

Rhonda Dales, 61, of Clermont, was charged with one count of first-degree theft in Fayette County District Court. She is accused of making improper disbursements of $131,213 and $7,532 of unsupported disbursements during the 2017-21 period, according to a criminal complaint.

She was responsible for making purchases, accounting records, making bank deposits, paying bills, depositing collections, payroll, posting checks and preparing council meeting minutes and financial reports, according to the special report conducted by the Office of the State Auditor.

Dales, who started her job as city clerk in July 2003, was fired May 17, 2021, when the city council had questions regarding her work hours as full time, instead of part time, which enabled her to receive full-time benefits, failure to follow proper directions regarding processing of insurance stipends and general public conduct, according to the audit.

City officials asked for the audit after terminating Dales’ employment. The audit shows the total improper disbursements:

-$104,283 unauthorized payroll and related payroll costs

-$25,085 unauthorized reimbursements to Dales, including insurance

-$1,400 cellphone purchase

-$22.42 disbursements from the city account

-$423 in late fees, interest and finance charges to IPERS.

The $7,532 of unsupported disbursements identified includes $6,596 in reimbursements made to Dales and $936 of purchases made with the city’s debit card, according to the audit. The auditor was unable to determine if additional funds were improperly disbursed or if any additional collections were not properly deposited because there were no adequate records.

If convicted, she faces up to 10 years in prison.

The Fayette County Sheriff’s Office was assisted in the investigation by the Office of the State Auditor and Fayette County Attorney’s Office.

Comments: (319) 398-8318; trish.mehaffey@thegazette.com