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Comptroller's Office: Former treasurer stole more than $100k from Campbell Co. library board

Officials said the former treasurer did repay more than $47,000 to the board. However, they have since died and $60,000 in misappropriated funds remains unpaid.

CAMPBELL COUNTY, Tenn. — A state investigation revealed a former treasurer on the Campbell County Library Board who has since died misappropriated funds from the board's bank account, according to the Tennessee Comptroller's Office.

The investigation showed the former treasurer made 135 cash withdrawals totaling $107,640 between June 2016 and March 2020, most of which happened at the bank counter.

Library board officials told investigators there was no reason for any transaction to be conducted in cash.

The former treasurer's scheme was uncovered after the board reported "unexplained cash withdrawals" to the Comptroller's Office. Financial reports presented to the board during the treasurer’s tenure did not accurately reflect the board’s financial position, a press release stated.

Officials said the former treasurer repaid $47,625 to the board; however, an outstanding balance of $60,015 in misappropriated funds remains.

The Comptroller's Office said the former treasurer was removed from office in March 2020 before they died from long-term health issues.

The library board oversees four libraries in Caryville, LaFollette, Jacksboro, and Jellico. It receives money from the county, state, and individual cities within Campbell County, officials said.

“It’s critical that board members establish internal controls to prevent unauthorized activity,” said Comptroller Mumpower. “In this situation, the board should have been reviewing bank statements. The board should also not have allowed the former treasurer to have exclusive control over the board’s accounts without review.”

The results of the investigation were communicated to the Office of the District Attorney General of the 8th Judicial District.

For the investigative report, click here.

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