Thursday, January 13, 2000
Embezzlement probe at state agency grows
BY CHARLES WOLFE
The Associated Press
FRANKFORT, Ky. — A former Department of Education official may have embezzled $514,000 and had a hand in hiding even more, the state auditor said Wednesday.
An audit is continuing, and the total could change, Ed Hatchett said. So far, investigators have “very strong evidence that ties $514,000 to an apparent embezzlement,” Mr. Hatchett said.
The former official, Randy Kimbrough, resigned last week when it was disclosed that she was being investigated by the FBI and state attor ney general.
Ms. Kimbrough was a deputy commissioner of the department. She headed a branch that oversaw school finance, buildings and transportation.
At issue is whether she took money an obscure agency — Kentucky Educational Development Cooperative — paid at her direction in 1998 and 1999 for consulting work that never occurred. Officials said last week that about $300,000 was known to be missing.
Also, auditors found Department of Education money — nearly $1 million — had been shifted to the Ashland-based cooperative, apparently to keep it from being returned to the treasury, Mr. Hatchett said. Ms. Kimbrough's husband, Jesse Kimbrough, was on the cooperative's payroll.
Mr. Hatchett said he had “grave concern” about “the likelihood that the Department of Education was parking funds at the co-op to avoid having them lapse.”
Mr. Hatchett said the cooperative paid Jesse Kimbrough $175,000 over four years.
Ms. Kimbrough declined to comment on Mr. Hatchett's statements. Her attorney ordered her to say nothing about the case, “but my husband is not involved in any of this,” she said.
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