Appeals court reduces woman’s restitution order

January 29, 2016

The Indiana Court of Appeals reduced a woman’s restitution owed to her ex-employer for money she stole over the course of a three-year period. The judges found no connection between additional missing funds and the defendant.

Kimberly Y. Morgan was charged with seven counts of theft alleging she mishandled funds as sales manager of the Howard County Convention and Visitors Commission Inc. She pleaded guilty to three counts of theft as a Class D felony and was ordered to pay $16,000 to the visitors commission and $11,455.48 to Selective Insurance Co. of America, the amount it paid to the commission after an investigation.

Selective Insurance originally received a claim for nearly $27,000 from the visitors commission. Greater Kokomo Economic Development Alliance controller Joleen Boyles testified that a “deep dive audit” revealed more than $21,000 in missing funds. Morgan denied taking more than the $11,455 through credit card fraud.

In Kimberly Y. Morgan v. State of Indiana, 34A05-1509-CR-1323, Morgan appealed the restitution amount to the visitors commission. Selective Insurance was able to confirm, based upon a review of documentation provided by its insured, fraudulent charges totaling $14,045, a portion of which Morgan had repaid, Judge L. Mark Bailey wrote. And while Boyles testified there was additional missing money, she did not offer testimony or documentation showing a nexus between those missing funds and conduct by Morgan.

“As such, the State did not satisfy its burden to show losses as a ‘direct and immediate result’ of Morgan’s criminal acts beyond the $11,455.48 paid by Selective Insurance and the $250.00 deductible charged to the Visitors Commission,” he wrote.

The COA remanded with instructions to enter a restitution order for the payment of those amounts to Selective Insurance and the visitors commission, respectively.


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