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Audit Shows Former Clerk Owes Brazil $20k

By: Jon Swaner
Updated: February 16, 2011
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A former Brazil City Clerk is under investgation by the Clay county Prosecutor's Office.

We've obtained an audit report from the Indiana State Board of Accounts on the City of Brazil.

Every year, cities like Brazil are audited b the ISBA.

In its most recent audit by the State, Brazil Mayor Ann Bradshaw and City Clerk Karen McQueen learned what the State found in its investigation of missing monies.

The State claims former City Clerk Tracy Webster is responsible for most of the missing monies... nearly $20,000 that's owed to the City and STATE.

Among the things discovered, the State claims Webster was paid by a false vendor.

The audit also shows she overpaid herself, handwriting checks to herself out of City accounts.

The State even shows an overpayment to an employee who turned out to be her own daughter, who worked part-time in the Clerk's Office.

City Attorney Tracy Lawson told us because there's a criminal investigation into this matter by State Police, she and all City officials have no comment.

So we went to the Clay County Prosecutor's Office to see where the investigation stands.

Prosecutor Lee Reberger says he has the same report from the State Board of Accounts.

However, he received it just this past Tuesday and has not had enough time to review it.  He will decide whether to file charges against Tracy Webster at later time.

As for Tracy Webster, the Audit indicates she's paid back $200 of the $20,000 she owes.

The State also said Webster has filed for bankruptcy.

Webster's daughter has reimbursed the City of Brazil the money she was overpaid.

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