The Free Press, Mankato, MN

Local News

July 3, 2008

Former Le Center school board member charged

Kathleen Marie Novotny allegedly swindled New Prague

Tanner Kent

NEW PRAGUE — A former Le Center School Board member and New Prague city employee has been charged with three counts of felony theft by swindle.

Kathleen Marie Novotny of Le Center is accused of paying herself more than $18,000 for unauthorized work as an accounting technician for the city of New Prague, according to the charges filed Wednesday in Scott County District Court. The charges stem from incidents between 2005 and 2007, according to the criminal complaint.

Novotny’s resignation was accepted by the New Prague City Council during the April 21 meeting. That month she also resigned from the Le Center School Board.

Officials from the Scott County Sheriff’s Office were notified of the alleged theft on April 9 after several payroll discrepancies were discovered during a routine audit of the city’s records.

The audit for yearly operations was approved by the City Council in February. During the course of the audit, Novotny was asked to provide vacation accrual documents as well as her W-2 information and payroll timecards for several years of employment.

Novotny became “very defensive” when first asked for her timecards, but later complied, according to the complaint. Patty Solheid, the administrative services director who supervised Novotny, also said in the complaint that she received two phone calls from Novotny on Feb. 28. During those phone calls, Solheid said Novotny asked why auditors were reviewing her vacation and W-2 information.

On Feb. 29, Solheid said Novotny came to work early and said she had remembered paying herself extra hours for ambulance billing. Novotny claimed she had authorization for the overtime work. Neither Solheid nor the ambulance director, however, remembers or has record of the request.

In the complaint, Novotny said ambulance billing “was a mess” during a period of staff changeover and that she would pay the money back.

“Ms. Novotny denies these allegations,” said Allen Eskens of Eskens, Gibson and Behm Law Firm. “We will vigorously challenge these accusations in court.”

Novotny is accused of accepting $18,573.41 in overpayments between 2005 and 2007. Those payments came in the form of payroll checks and deposits into her medical and retirement accounts. Novotny is also accused of adding 48 hours to her vacation accrual account.

A School Board member since 2003, Novotny held several titles, including clerk and treasurer. Novotny was one of three board members who opposed the hiring of Scott William Bernard as girls volleyball coach because of a conviction for providing alcohol to a Janesville minor in 2004. When Novotny resigned, Bernard’s contract was approved 3-2.

Novotny’s next court date is scheduled for July 18.

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