MCCORDSVILLE — The former treasurer of Fortville Elementary School’s parent-teacher organization faces new charges after an investigation revealed that thousands of the dollars she was handling for the group are missing, police said.
Marcy Smitley, 39, of McCordsville, was arrested in Marion County in February amid allegations that more than $127,000 was taken from the homeowners association she supervised.
Smitley now faces 14 new counts of forgery and one count of theft in Hancock County. She previously was charged in Marion County with 20 counts of forgery and one count of theft. Each of 36 charges is a felony carrying a penalty of six months to 2½ years in jail and up to $10,000 in fines.
Hancock County Prosecutor Brent Eaton issued a warrant for Smitley’s arrest last week. She was jailed Friday after being pulled over on suspicion of drunken driving. She faces misdemeanor charges of operating a vehicle while intoxicated in addition to the felonies related to her work with the PTO.
Fortville Elementary officials began an internal investigation after the Daily Reporter alerted them to the criminal case against Smitley in Marion County earlier this year.
Smitley was asked to resign from the position during what PTO President Mary Jo Adams called a precautionary audit.
Checking the group’s records, however, revealed $6,700 was missing, court documents state.
Police said 14 checks were cashed or deposited into Smitley’s personal account without the knowledge or approval of the PTO.
Smitley served as the PTO treasurer for three years, but Adams was able to audit PTO records dating back to only last July.
Adams reportedly met with Smitley in early March, before contacting police, to inquire about the checks. Smitley told Adams they were reimbursements for expenses she paid in prior years or for board-approved purchases, court documents state. Smitley was not able to produce receipts for these purchases, court documents state.
School officials then contacted the Fortville Police Department, which began a criminal investigation.
Because the PTO collects and controls its own funds, Smitley’s position within the school district did not allow her access to any other corporation money, Mt. Vernon Community Schools Superintendent Bill Riggs said after her previous arrest.
Smitley, the owner of MS Management Group Inc., was hired to supervise the Winslow Crossing apartment complex on the southeast side of Indianapolis and is accused of stealing homeowners association funds.
Board members from Winslow’s homeowners association told police all funds and dues for the homeowners association passed through Smitley, who then was to manage the apartment complex by billing vendors, collecting dues and funds and scheduling maintenance for the units.
From 2009 to 2014, Smitley wrote 70 checks without the board’s permission, pocketing more than $127,000, court documents state.
“(Board members) advised that Smitley was allowed to write one check per month to herself for services, and it has to be signed by two members of the board,” the affidavit states. “(Board members) noticed that during certain months, Marcy wrote up to seven checks to herself/company.”
Prior to conducting their own investigation, school officials called Smitley an involved parent who has always been eager to volunteer at school functions. They were shocked to find out about the allegations against Smitley in Marion County, they said.
A trial date for the offenses in Marion County has been set for July 8. She is expected to appear in Hancock County Superior Court 1 this week on the local charges.