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January 11, 2006Forensic accountant testifies'For 10 years, this could not have been a mistake,' witness says of records
Janice Gee, East Bay Township clerk, sits with defense attorney James Hunt during her embezzlement trial Tuesday afternoon at the Grand Traverse County Courthouse. Schneider laid out a timeline to a six-man, six-woman jury in 13th Circuit Court that led to an alleged revelation that Gee, 60, tinkered with payroll accounts for at least 10 years. Gee allegedly transferred township funds into her personal retirement account and used township funds to pay federal income taxes for herself and her daughter, former township assessor Tammi Simerson. Gee's attorney James Hunt told Judge Philip Rodgers he would defer his opening statement until later in the trial, which is expected to run through Thursday. Schneider argued that Gee, who faces nine felony embezzlement counts, allegedly took thousands of dollars from the township. Forensic auditors said Gee embezzled $62,000 dating to 1995, but due to the statute of limitations she is charged with stealing approximately $29,800 dating to 2000. "That money went (into the retirement account) and it was sent by Ms. Gee," said Schneider. "She sent East Bay Township's money, not her own." Michelle McHale-Adams, a forensic accountant with Plante & Moran, testified for more than two hours about her review of East Bay's financial records. Supervisor Glen Lile hired the firm. McHale-Adams said her analysis focused first on payroll records controlled by Gee, where McHale-Adams said she soon found several "discrepancies" going back to 1995. McHale-Adams testified she repeatedly found a pattern of "significant discrepancies" as Gee allegedly declared to the federal government a contribution of thousands of her own dollars to the compensation account, despite records that she instead used the township's money. "For 10 years, this could not have been a mistake," she said. Lile, elected in November 2004, said there were concerns about financial problems before he took office that prompted him to seek legal counsel and to hire Plante & Moran. In his cross examination, Hunt asked both McHale-Adams and Lile whether the township received a letter from a Plante & Moran supervisor about problems with payroll software used by the township. "Did there appear to be some issue with the program?" Hunt asked Lile, who confirmed a letter was sent to him. The trial enters its first full day today after Tuesday morning was dedicated to jury selection, for which approximately 60 people were called in as potential jurors. Only 25 candidates were questioned, with 13 dismissals, before Rodgers seated the panel that will determine Gee's fate. Each charge is punishable by up to five years in prison and a fine of $10,000. Of the first 14 juror candidates, two were dismissed, including a current client of Hunt's and a man whose employer took over East Bay payroll chores after Gee was charged. Rodgers also dismissed an East Bay resident after she acknowledged she had formed an opinion about the case and could not be objective. During jury selection, Schneider told candidates the trial would require the jury to use common sense to "follow the trails of documents," that there would be no pictures of Gee taking "cash of out the till." See Related Stories: Gee trial set for Tuesday - January 9, 2006 East Bay treasurer faces court hearing - January 6, 2006 Embattled clerk removes desk, triggers burglar alarm - January 4, 2006 Gee paid $23,000 for doing little work - December 22, 2005 Township might not recoup its losses - December 15, 2005 Residents are not as forgiving of Bartko as officials - December 15, 2005 Bartko pleads guilty - December 14, 2005 Audit reveals special assessment district mess - December 11, 2005 Gee will stand trial next month - December 10, 2005 Accountants missed many red flags - December 4, 2005 Other townships pondering changes - December 4, 2005 Bartko hears felony counts - November 29, 2005 Two more face charges in financial scandal - November 23, 2005 News Break: Ex-supervisor, current treasurer charged - November 22, 2005 Records show township paid planner from U.P. - November 13, 2005 Signature goal reached for recalls - November 9, 2005 East Bay Township probe widens - October 27, 2005 Bid for state's assistance in removing Gee falls short - October 12, 2005 East Bay recall petition drive thriving - October 11, 2005 Gee trial delayed as prosecution continues to build case - October 1, 2005 Audit: East Bay Township clerk took $62K - September 28, 2005 Residents demand answers from East Bay board - September 16, 2005 Audit may result in more charges - September 14, 2005 East Bay residents to circulate petitions - September 3, 2005 East Bay finances: 'Little stuff' totals thousands - August 28, 2005 Prosecutor says East Bay probe may widen - August 26, 2005 Former supervisor likely purchased personal items - August 21, 2005 East Bay Township clerk is back to work - August 21, 2005 More money may be missing in East Bay - August 16, 2005 Lile suggests shutting down East Bay government - July 22, 2005 East Bay Township supervisor expects 'real ugly' meeting - July 22, 2005 East Bay assessor to be paid as fate is determined - July 12, 2005 Errors pile up in review of East Bay records - July 10, 2005 Public backs East Bay probe leading to arrest of clerk - June 28, 2005 East Bay Township clerk charged with embezzlement - June 23, 2005 Township officials pushed for audit leading to Gee's arrest - June 23, 2005
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