Former city worker faces embezzlement probe

Published 12:04 pm Tuesday, August 24, 2010

A city employee who resigned July 30, days after being suspended without pay, is being investigated by the State Auditor’s Office for embezzlement, the Vicksburg Board of Mayor and Aldermen confirmed Monday.

Katrina McCloud had worked for the city since Nov. 10, 2008. She started in the city clerk’s office as a deputy clerk, and on July 20, 2009, transferred to the mayor’s office as an administrative assistant. Her pay increased from $12 an hour to $13 with the move, however, she was transferred back to her old job in the city clerk’s office on Dec. 7, 2009. Her pay remained the same.

Mayor Paul Winfield said he had no comment on the investigation, but stressed McCloud handled no public funds while employed in his office. The mayor said McCloud’s move to his office was temporary, and she requested the return to the city clerk’s office.

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South Ward Alderman Sid Beauman and North Ward Alderman Michael Mayfield said they decided to suspend McCloud on July 27 when “discrepancies with some deposits” were uncovered. Winfield was out of town at the time, Mayfield said. McCloud resigned three days later.

The mayor and aldermen declined to elaborate on the time frame of the discrepancies or the amount of money in question.

“We turned it all over to the State Auditor’s Office, and we really won’t know anything until they complete their investigation,” said Beauman, who added McCloud never admitted to any wrongdoing.

Lisa Shoemaker, director of communications for State Auditor Stacey Pickering’s office, said she could not comment on an ongoing investigation. Beauman said there is no internal investigation being conducted by the city.

The city clerk’s office accepts from the public and businesses various fees for permits and pays some of the city’s bills, handling much of the city’s $31.1 million budget.

Meanwhile, on July 29, former TV23 Director Thomas “Barry” Graham was placed on five years of probation, fined $1,500 and ordered to pay about $30,000 in restitution to the city and state after pleading guilty to a felony embezzlement charge.

Graham is to pay the city $21,714.59 for electronics and audio equipment he admitted buying with city funds between November 2009 and September 2009. In addition, he also is to pay $4,455 to the city for interest on the stolen items. With court costs and the cost of the investigation factored in, total restitution owed is $30,882.37. The city filed a $28,530.68 claim with its insurer last week to cover its losses in the case.