Federal criminal charges have been filed against former office manager for the City of Bloomington Parks and Recreation Department Judith Seigle, 51, of Gosport, Ind., United States Attorney Josh Minkler announced March 13.
Seigle was indicted by a federal grand jury on a wire fraud charge. She allegedly executed a scheme to steal over $400,000 in funds intended for Parks Department projects and programs, according to a news release from the U.S. Department of Justice.
“The citizens of Bloomington deserve better from their paid city employees,” Minkler said in the release. “This is the second employee in less than one year charged with stealing city funds. Public officials need to serve the public and not serve themselves. The projects and programs of the Parks Department exist to benefit the citizens of Bloomington. The indictment alleges that Defendant Seigle used funds intended for the parks as a piggy bank to benefit herself.”
The other employee is former Manager for Engineering Services for the City of Bloomington Justin Wykoff, who pled guilty in federal court March 13 to 11 counts of wire fraud for receiving kickbacks from the operators of a local concrete company and awarding City contracts to the company, according to the release.
In pleading guilty, Wykoff admitted he was responsible for bidding and awarding contracts for public works projects in Bloomington such as road paving and sidewalk construction. Between April 2011 and February 2014, Wykoff solicited and received substantial cash bribes and kickbacks from Roger Hardin and Zach Hardin, who operated a company called Reliable Concrete and Construction.
In exchange for the kickbacks, Wykoff assisted the Hardins in obtaining over $800,000 in City construction contracts and payments for Reliable Concrete, according to the Department of Justice. Wykoff estimated project costs and prepared bid proposals, using his inside information to ensure Reliable Concrete was the low bidder. In some cases, Wykoff awarded City contracts to Reliable Concrete outright without obtaining bids from other contractors. Wykoff also authorized City payments to Reliable Concrete totaling approximately $807,000. Of that amount, approximately $300,000 was for work that was never completed by Reliable Concrete.
Seigle, in her position as office manager, was responsible for maintaining certain books and records for the Parks Department as well as books and records for the Bloomington Community Parks and Recreation Foundation, a 501(c)(3) charitable organization, which exists to provide support for Bloomington’s parks and community programs. The indictment alleges that from approximately 2001 to October 2014, she diverted, embezzled and misappropriated approximately $430,000 in funds from the Foundation and Parks Department for her personal use and benefit.
According to Senior Litigation Counsel Steve DeBrota and Assistant U.S. Attorney Nick Linder, who are prosecuting this case for the U.S., Seigle faces up to 20 years in prison if convicted.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
Seigle’s investigation was conducted by the FBI and the Bloomington Police Department, with assistance from the Monroe County Prosecutor’s Office.
Wykoff’s investigation was conducted by the FBI and the Bloomington Police Department, according to the Department of Justice.
If the court accepts Wykoff’s plea agreement, Wykoff could face more than five years in prison and could be ordered to pay up to $446,335 in restitution to the City of Bloomington.
PULL OUT INFO:
The indictment alleges that 51-year-old Seigle:
Used Bloomington Parks Foundation credit cards “issued to her or to former or deceased employees” to make purchases.
Created and submitted false bank statements using Microsoft Excel, taping over the actual statements to conceal the misappropriation of funds.
Diverted checks intended for the Project School fund by depositing them into the parks foundation account and using the money for her own benefit.
Made three purchases totaling $1,250 on a Coldwater Creek credit card issued by Comenity Bank between August and October 2014.
Made 29 purchases totaling $30,279 on a third Chase-issued credit card between January 2013 and September 2014.
Made 27 purchases totaling $8,714 on a Capital One Bank credit card between September 2011 and September 2014.
Made six purchases at Kohl’s department store totaling $1,925 between October 2011 and May 2012.
Made 49 purchases totaling $26,787 on a Coldwater Creek credit card issued by Chase Bank between October 2010 and July 2014.
Made 40 purchases totaling $39,963 on a second Chase-issued credit card between October 2010 and December 2012.
