Former Delhi city clerk accused of embezzling city funds pleads in federal court

CEDAR RAPIDS - A former Delhi city clerk accused of embezzling $75,000 or more from the city pleaded guilty Friday in federal court.

Angela J. Billings, 42, of Anamosa, pleaded guilty to theft concerning a program receiving federal funds in U.S. District Court. Billings, while working as city clerk for Delhi, 'willfully embezzled, stole, intentionally misapplied and converted” for her personal use at least $75,000 in city funds from March 2007 through January 2015, the charging information shows.

U.S. District Chief Magistrate C.J. Williams said Billings faces up to 10 years in federal prison and three years of supervised release following any prison time. She also could be fined $250,000 or more and will have to pay victim's restitution of more than $96,000, according to a plea agreement.

In December 2016, Auditor of the State Mary Mosiman conducted a special audit of the city, which found Billings spent the embezzled city funds for satellite television, weight loss supplements, calls to a psychic hotline and more than $69,000 in improper paychecks and expenses.

Records show Billings used a city credit card to charge $88,160 of personal expenditures, received $63,226 in unauthorized pay and lowered her and her ex-husband's utility bills by $6,748.

The audit found she paid for a fraction of the personal expenses - $2,419 - with personal checks written to the city's card company.

After Billings resigned in 2015, a new city clerk was organizing records when she noticed payments to a credit card she didn't know at the time belonged to the city. She also noticed utility billing discrepancies.

Delhi Mayor Terry Harbach said last year after the audit was released that he had no 'suspicions” at the time that Billings was diverting funds and giving herself extra paychecks.

According to the report, Billings, who was the clerk from 2007 to 2015, made improper purchases on the city's credit card of nearly $90,000 that included:

- $16,264 at convenience stores.

- $13,780 at Wal-Mart.

- $7,998 at various retail stores.

There were also charges for $1,798 in late fees, finance charges, electronic payment fees and over-limit fees.

Mosiman said in her report that some of the charges on the credit card were for legitimate city business, but the majority were not.

From March 2007 through June 14, 2008, the city clerk position was part time and Billings was expected to work only 24 hours per week, the audit report shows. Her position was then made full time by the city, changing it to a 40-hour workweek. Still, based on a review of the time sheets, 173 of the 189 payroll checks issued to her showed hours exceeding those authorized.

The audit found $6,700 of unpaid and not billed utilities linked to her - including $4,719 in unpaid utility bills for her home and for her ex-husband's business from March 1, 2007 through Dec. 30, 2014.

Billings also faces theft charges filed in Delaware County District Court but those charges likely will be dismissed once she is sentenced on this federal conviction, court documents show.  

Billings remains free on special conditions previously set pending sentencing. Sentencing will be set after the pre-sentencing report is completed.

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