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Former Niles treasury clerk ordered to serve six months in county jail, repay $142,772
By Ed Runyan
WARREN
Phyllis J. Wilson, who stole $142,772 over 41/2 years as Niles assistant treasurer, was led away in handcuffs Tuesday to serve six months in the Trumbull County Jail.
She will not serve a prison term, but she forfeits her $1,176 per month in public retirement benefits “until it is paid,” said Judge Andrew Logan of Trumbull County Common Pleas Court. Wilson, 62, of Russell Avenue, Niles, pleaded guilty earlier to theft in office.
Before learning her sentence, Wilson apologized and said she stole because of a gambling habit.
“To say I’m remorseful doesn’t begin to cover what I feel,” she said. “I vow to never allow gambling to take over my life again.”
Her lawyer, David Rouzzo of the Ohio Public Defender’s Office, said Wilson has no other criminal record, attempted suicide and spent some time in a mental hospital. “She’s highly unlikely to offend again,” Rouzzo said, adding that her addiction is much like the drug addictions that bring many others to the courthouse.
He said her $1,176 pension “doesn’t cover her expenses.”
Chris Becker, assistant Trumbull County prosecutor, asked Judge Logan to give Wilson prison time because of the seriousness of the offense and because she violated a position of trust in the community.
A state audit said she took the $142,772 between January 2009 and the point when she retired in June 2013.
Becker pointed out that garnishing her wages for the next five years will only pay back about half of what she stole. After five years, the prosecutor’s office or city of Niles will have to get a civil judgment to make her pay the rest.
“It will still be $72,000 short,” Becker said.
Wilson’s entire PERS account cannot be liquidated now to pay her debt because she retired before investigators uncovered the missing money, Becker explained.
A routine audit conducted by Ohio Auditor David Yost’s office uncovered the theft. The state auditor’s office said in December that Wilson’s theft was one of a series of problems it found during the audit of the city’s finances for 2012.
Yost’s office said one reason Wilson was able to get away with the theft for so long was that Wilson worked without enough oversight from her boss, Niles Treasurer Robert Swauger, or other officials.
The treasurer’s office needed a better “segregation” of duties, the 2012 audit said, adding that Wilson “had complete control” over collecting money, depositing it and reconciling the money paid by customers with the money deposited.
Judge Logan ordered Wilson to write a letter of apology and serve 200 hours of community service. She cannot work in any job involving money, and she’s not allowed to enter any casino.