Former Switzerland County School Corporation treasurer Ann Geyman was arrested last Thursday by officers from the FBI and Indiana State Police and charged with theft and mail fraud.
After being arrested, she appeared in federal court in New Albany for an initial hearing, and following that hearing she was released to home detention with an electronic monitoring device until her next court appearance.
She was officially charged with She was fired in May after admitting to diverting school funds for her personal use. An ongoing audit by the Indiana State Board of Accounts has found 190 checks totaling $1,054,289.15 that were written between 2003 and May of this year.
The arrests are a result of an ongoing federal investigation, with more charges possible as the investigation continues. During the investigation, federal agents from the U.S. Marshals Service, the FBI, and the Internal Revenue Service went to several locations in Switzerland County and Jefferson County looking for evidence that would link her to the thefts.
The results of that investigation were outlined in the criminal complaint that was filed on June 27th in the court of U.S. Magistrate Judge Kennard P. Foster. The document was filed by Charles L. Cohen, A first Sergeant with the Indiana State Police with a cross designation as a Special Deputy with the United States Marshal’s office.
In the criminal complaint, Charles L. Cohen presented the evidence that has been gathered to this point through the investigation – including evidence found that may show that money was also embezzled from the Madison Regatta, where Ann Geyman served as treasurer for 16 years.
Items of interest found in the 29-page complaint included information from an interview with Ann Geyman; as well as the results of searches done that resulted from having Ann Geyman under surveillance for the past month.
SEARCH
On June 7th federal investigators searched Ann Geyman’s home at 1829 Telegraph Hill Road in Madison. According to the criminal complaint, at the time the search began, Ann Geyman was not at the residence,
During the search, the criminal complaint says that investigators found items such as a day planner; a plastic tub filled with statements and documents; and other evidence that linked Ann Geyman to the embezzlement of funds from the Switzerland County School Corporation.
Items found included credit card statements, documents linking specific school accounts, blank check stock, and other information. In a dresser drawer in Ann Geyman’s bedroom, investigators found other evidence, including a $1 million certificate of deposit held by the Switzerland County School Corporation.
The document stated that both the principal and interest of the certificate of deposit were still intact at the bank.
In a room of the home that appeared to be used as a den, investigators found a canvas bag that contained, “…A significant volume of altered Switzerland County School Corporation bank statements and altered check images that accompanied the statements….”
“I observed that the alterations were made using White Out-type covering, and cut and taped paper covering legitimate information with false information on the documents,” Investigator Charles Cohen wrote in the criminal complaint. “I observed that the manner in which the alterations were made appeared to be consistent with a scheme to conceal the embezzlement through a check substitution scheme so that the statements would balance on reconciliation.”
Investigator Cohen also believed that this was no simplistic process.
“Based on my training, education, and experience,” he wrote. “This was a sophisticated, skilled, and time-consuming methodology of embezzlement.”
During the time that investigators were searching the home, the criminal complaint says that Ann Geyman was under surveillance by agents of the FBI. During that time, the agents followed Ann Geyman to “A location where documents and records of evidentiary value were recovered pursuant to a consent to search by the property owner….”
The complaint then says that officers followed Ann Geyman to her home, where the search was ongoing. The documents says that by the time she arrived, all of the items in the search warrant had been seized.
At that point, the complaint says that Ann Geyman agreed to be interviewed by Charles Cohen and Nathan Floyd, an Internal Revenue Service Criminal Investigation Special Agent.
INTERVIEW
The interview with the agents contained several admissions and insights by Ann Geyman:
– “After being fired by the Switzerland County School Corporation, Geyman retained a laptop computer that belongs to the school corporation and Zip disks containing backups of the corporation’s accounting databases. Geyman gave these to the attorney that represents her in civil matters. In regard to the school corporation’s attempt to recover their property, Geyman said, ‘their (the Switzerland County School Corporation) attorney called wanting the laptop, and my attorney said we’ll make a trade for her personal possessions’.”
– “Geyman admitted to embezzling from the Switzerland County School Corporation by taking payroll checks from the school corporation and that as part of the scheme, ‘I’d write checks to pay credit card bills’.”
– “In referring to the embezzlement activity Geyman said, ‘Yes. It’s strange too, I knew it was wrong’.”
– “When asked if she thought that law enforcement would find out about the embezzlement Geyman said ‘no’.”
– “Geyman said that she engaged in the embezzlement because she had a ‘spending problem’. Geyman denied that she engaged in the embezzlement because of her husband’s gambling activities. Geyman denied that she told this to representatives of the school corporation, but said that she admitted writing two fraudulent check to those representatives.”
– “In reference to the potential for discover of her embezzlement from the Switzerland County School Corporation Geyman said, ‘I didn’t think they’d ever figure it out’.”
– “Geyman specifically denied ever taking money or embezzling from the Madison Regatta.”
– “Geyman specifically denied ever taking money, embezzling from, or engaging in unlawful activity involving an entity other than the Switzerland County School Corporation.”
MORE EVIDENCE
The criminal complaint said that Ann Geyman had been under surveillance by the FBI as a part of the investigation, and that on June 7th, 2007, agents observed Ann Geyman, “driving to and entering a residence known to investigators.”
On June 7th, the document says that IRS agents and officers of the Indiana State Police got permission to search the residence in question. During their search, investigators combed over an outbuilding on the property.
In that outbuilding investigators found personal property, “including furniture, clothing, purses, and collectibles sufficient to completely fill an approximately 10 foot by 20 foot storage area.”
The document said that the owners of the residence identified the property as belonging to Ann Geyman, and that the items had been moved there after she was fired from the school corporation.
The complaint goes on to say that while agents were searching the property, they came into contact with the owner of the adjoining property, who gave officers permission to search a pole barn that was located on that property.
In that pole barn, investigators found more personal property that was identified as belonging to Ann Geyman. In that barn, the document states that investigators found boxes and plastic tubs stacked three or four high.
“The boxes contained collectibles, glassware, porcelain, and other property that was identified by witnesses as belonging to Ann Geyman,” the document said. “Witnesses told investigators that this property was moved to the pole barn within the last thirty days.”
The document states that witnesses also directed investigators to a plastic tub that contained documents and records; and inside that tub officers found financial records of Raymond and Ann Geyman; and also financial records of the Madison Regatta.
The criminal complaint also says that financial documents and records for the Madison Regatta were also found during the search of Ann Geyman’s home.
“During the execution of the warrant to search Geyman’s residence, financial documents and records for the Madison Regatta were recovered,” the criminal complaint states. “Three portable plastic file containers were located in the garage of the residence. Inside one of these containers, investigators discovered two (2) original negotiated checks from the Madison Regatta. Both checks were negotiated to the payee ‘American Express’. The preprinted address on that checks is ‘311 W. 3rd St. Madison, IN 47250. On June 25, 2007, Herb Parker, a representative of Madison Regatta, Inc., who is in a position to know such matters, told investigators that the entity never used this address for any purpose.”
The document says that on that same day investigators interviewed Thomas Imes, who owns the property on 3rd Street. He told officers that at about the time the checks were written, that property was rented to Ann Center, also known as Ann Geyman.
The criminal complaint says that on the memo line of both checks, the account number that appears is the same American Express account number that reports say is issued to Ann Geyman.
The search also found several Madison Regatta checks that were never negotiated.
THE PENALTIES
Following her arrest, Ann Geyman appeared in U.S. District Court in New Albany in front of United States Magistrate Judge Michael G. Naville.
According to Assistant United States Attorney Steven D. DeBrota, who is prosecuting the case for the government, Ann Geyman faces a maximum possible prison sentence of 20 years and a maximum possible fine of $250,000 on the mail fraud count and a maximum possible prison sentence of 10 years and a maximum possible fine of $250,000 on the theft from programs receiving federal funds count.