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Muddy Creek's financial lesson instructive to others

Former Muddy Creek Township secretary Dixie Christy will be paying a steep price for violating the trust and confidence accorded her by township officials and residents.

When government officials, elected or appointed — and at any level — violate the public trust, they deserve a stern reprimand, and that is what Christy faces in the 9 to 18 months of jail time, 121 months of probation and 100 hours of community service that were meted out to her Tuesday by Butler County Judge William Shaffer.

Christy also was ordered to pay restitution of nearly $180,000, which, in addition to her unauthorized pay, includes money that the township paid in IRS penalties, accounting fees and legal expenses.

Christy's punishment stemmed from more than 100 unauthorized paychecks she wrote to herself while she was in charge of township payroll. Audits revealed that Christy had written herself $142,000 in unauthorized compensation.

Court records say she issued the unauthorized checks to herself between 2005 and 2008. She promptly resigned from her township position when she was confronted with suspicions that she had acted improperly, costing the township a significant amount of money.

The township has been reimbursed $147,000 by its insurance company. However, under the sentence imposed by Shaffer, Christy will have to repay the insurance company, and the balance to the township.

According to township solicitor Tom Smith, the township will not fall victim in the future to such circumstances. He said changes have been made to the municipality's checking procedures and to its computer software.

But that doesn't excuse the fact that the township supervisors put too much trust in Christy, despite having no reason to question her honesty.

In all municipalities and in all levels of government whenever handling of money is involved, a system must be in place capable of quickly detecting discrepancies — accidental or otherwise.

During Christy's tenure as secretary, Muddy Creek's shortsighted "safeguard" was limited to trust.

The restitution bill stipulated by Christy's sentence will be awaiting her when she completes her time in prison. Worse than that bill, though, is the damage she has inflicted on her reputation. It is damage that — despite the apology she voiced in court on Tuesday — will remain with her for the rest of her life.

Muddy Creek's experience should serve as a notice to other municipalities that are overconfident that a Dixie Christy situation could never happen to them.

— J.R.K.

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