Court Upholds Restraining Order In Rhodes Hearing

July 28, 2016 at 4:25 p.m.

By John DeGroff-

The former bookkeeper for the North Webster Community Public Library was in Superior Court III Friday for a hearing to learn if a temporary restraining order freezing her financial assets would be upheld.

Kristi Rhodes, of 8959 CR 350N, Pierceton, was formally sued by Attorney General Greg Zoeller's office Tuesday for embezzlement. The suit seeks to recover missing funds, with the restraining order put in place to prevent Rhodes from transferring or hiding personal assets of value.

The restraining order requested by the Attorney General's office was upheld during Friday's hearing.

Rhodes' assets include real estate, an account at Lake City Bank and retirement accounts. A 2004 Chevrolet Venture and a 1997 Chevrolet Astro also were listed.

In court, Rhodes stated that the Astro had been totaled in an accident. Judge Joe V. Sutton allowed that vehicle to be removed from the lists of assets, and Rhodes was also allowed living expenses.

It's required by state law that all government agencies be audited. During such an audit, examiners from the State Board of Accounts found that a total of $16,990.29 was issued to Rhodes in the form of unauthorized checks. This occurred between December 2008 and September 2010.

Rhodes' actions caused the library to fall behind in meeting its financial obligations, incurring fines and late penalties. According to the audit, the library owes $1,585.10 to the Indiana Department of Revenue, $8,791.69 to the IRS and $1,032.05 to the Indiana Department of Workforce Development.

Deputy Attorney General Luke Hogan, in presenting the state's case, said that four things must be proven for such a case to move forward.

"It must be shown that the defendant's actions caused harm to the state," Hogan said. "It must also be shown that there is the likelihood of success for the state if the case is brought to trial.

"We also must consider the public interest. In this case, tax dollars from the citizens of the community were embezzled. The fourth thing that must be shown that the state would be harmed if no justice is done. The state therefore has a strong interest in recovering tax dollars."

In the original civil suit filed by Zoeller, triple damages totaling $85,197.39 is sought, plus attorney fees and prejudgment interest.[[In-content Ad]]Since this is a civil suit against Rhodes, with the state acting in the role of a collection agency, any criminal charges will have to be brought by the Kosciusko County Prosecutor's office.

At this time, the restraining order freezing Rhodes' assets will remain in effect indefinitely until further court order.

The former bookkeeper for the North Webster Community Public Library was in Superior Court III Friday for a hearing to learn if a temporary restraining order freezing her financial assets would be upheld.

Kristi Rhodes, of 8959 CR 350N, Pierceton, was formally sued by Attorney General Greg Zoeller's office Tuesday for embezzlement. The suit seeks to recover missing funds, with the restraining order put in place to prevent Rhodes from transferring or hiding personal assets of value.

The restraining order requested by the Attorney General's office was upheld during Friday's hearing.

Rhodes' assets include real estate, an account at Lake City Bank and retirement accounts. A 2004 Chevrolet Venture and a 1997 Chevrolet Astro also were listed.

In court, Rhodes stated that the Astro had been totaled in an accident. Judge Joe V. Sutton allowed that vehicle to be removed from the lists of assets, and Rhodes was also allowed living expenses.

It's required by state law that all government agencies be audited. During such an audit, examiners from the State Board of Accounts found that a total of $16,990.29 was issued to Rhodes in the form of unauthorized checks. This occurred between December 2008 and September 2010.

Rhodes' actions caused the library to fall behind in meeting its financial obligations, incurring fines and late penalties. According to the audit, the library owes $1,585.10 to the Indiana Department of Revenue, $8,791.69 to the IRS and $1,032.05 to the Indiana Department of Workforce Development.

Deputy Attorney General Luke Hogan, in presenting the state's case, said that four things must be proven for such a case to move forward.

"It must be shown that the defendant's actions caused harm to the state," Hogan said. "It must also be shown that there is the likelihood of success for the state if the case is brought to trial.

"We also must consider the public interest. In this case, tax dollars from the citizens of the community were embezzled. The fourth thing that must be shown that the state would be harmed if no justice is done. The state therefore has a strong interest in recovering tax dollars."

In the original civil suit filed by Zoeller, triple damages totaling $85,197.39 is sought, plus attorney fees and prejudgment interest.[[In-content Ad]]Since this is a civil suit against Rhodes, with the state acting in the role of a collection agency, any criminal charges will have to be brought by the Kosciusko County Prosecutor's office.

At this time, the restraining order freezing Rhodes' assets will remain in effect indefinitely until further court order.
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