$340K goes missing: Audit planned in suspected embezzlement from court clerk’s office

By Donna Hales
Phoenix Staff Writer

September 27, 2008 12:18 am

An investigative audit is expected to begin next week in the reported embezzlement of more than $340,000 from the Muskogee County Court Clerk’s Office, said Larry Moore, district attorney.
The missing funds are from court costs collected for several entities, said Court Clerk Paula Sexton. All money paid into the court clerk’s office was properly credited to those who paid fines or court costs, she said.
Sexton said longtime bookkeeper Jackie Borovetz is suspected of embezzling the funds beginning after the November 2007 state audit.
Borovetz agreed to meet a Phoenix reporter at a local casino Friday.
“I’m ready to talk,” she said.
In a second call, Borovetz said her lawyer, Chris Blankenship of Stigler, advised her not to say anything. He also declined to discuss the matter.
Borovetz left work at 4:30 p.m. Wednesday, planning to take vacation the rest of the week, Sexton said. Within minutes after Borovetz left the office, Muskogee County Treasurer Glenn Scott notified Sexton a bank had a question on one of the checks written on an office account, she said.
Sexton began an internal probe. She said she called the company that supplies the office’s software, Case Management Systems, and the state court administrator to send people to check the books and bank statements in the treasurer’s office.
The bank calling and questioning one of the embezzled checks “was a fluke,” said Julie Patrick with Case Management Systems.
If that hadn’t happened, the embezzlement probably would not have been caught until the next state audit, she said. At that time, auditors would have checked copies of canceled checks that are sent by the bank to the treasurer’s office against office records, she said.
The names on some of the checks in the treasurer’s office don’t match the names on the checks in the office software records, Patrick said.
“It’s glaring — it’s bizarre,” she said.
Names on most of the questioned checks tie to names connected to Borovetz, including her son and her maiden name, Sexton said. Borovetz apparently would sign the person’s name, initial that and then deposit in her account, Sexton said she was told.
Someone at the bank questioned one of those checks, she said.
Sexton said Borovetz had destroyed the credibility of the office she had helped build. Sexton said when she took office in September 2002 IRS penalties and interest were owed, and the office was a disaster.
The office has built up its collections to five times what the previous administration collected, she said. She said she is so hurt.
“I want her (Borovetz) arrested,” Sexton said. “I want her in jail like anyone else who commits an armed robbery. She robbed this office and the people who work here of integrity.”
She said it’s high time white-collar crimes receive the same jail time as other crimes.
“People would quit embezzling if they had to go to prison,” Sexton said.
Employees in the office cried when they learned of the embezzlement, she said.
“I’m just devastated,” Sexton said, tears tumbling from her eyes. “It’s the biggest misery in my life — my biggest disappointment. She came in here and did a hell of a job to help build this office back up. What makes somebody do something like that and then ruin the very office you helped save?”
Sexton said Blankenship called her Friday afternoon and said he was going to arrange for Borovetz to turn herself in.
That had not happened as of early Friday evening.
Reach Donna Hales at 918-684-2923 or Click Here to Send Email

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Photos


Borovetz