By Jim Hannah
The Cincinnati Enquirer
Ronald J. Epling, who earned $69,000 a year to oversee Florence's finances, bought his girlfriend a $200,000 Delhi Township home, paid her divorce bills and gave her thousands for drug treatments.
A glimpse of the money Mr. Epling gave his girlfriend, Cheryl Hatter, is contained in more than 1,000 pages of testimony on file at the Hamilton County courthouse.
The court testimony covers a four-year period in the custody battle between Ms. Hatter and her ex-husband.
Boone County Commonwealth's Attorney Linda Tally Smith said in court that Mr. Epling commingled the city's money with his own earnings and then dispersed it into accounts of both his wife and girlfriend.
Ms. Smith is expected to give more details on how the alleged scam went undetected for 15 years at a preliminary hearing scheduled for Monday in Burlington.
Mr. Epling, a 51-year-old Pike County native, is being held on a single count of felony theft involving a $125,000 check deposited in a Fifth Third Bank account under his control. He is being held at the Boone County jail on a $1 million cash bond. Ms. Smith said more charges are pending.
Mr. Epling's attorney, Burr J. Travis of Florence, entered a not guilty plea on his client's behalf last week and said Mr. Epling was cooperating with both state and federal authorities who are trying to locate the money.
Ms. Smith said Mr. Epling already has admitted to taking more than $1 million over nearly 15 years. Ms. Hatter, whose telephone number is unlisted, could not be reached for comment. No one answered the door of her Delhi Township home last week. Her divorce attorney, Rose Ann Fleming, couldn't be reached for comment Saturday. Ms. Hatter has not been named as a suspect.
In a March custody hearing before Hamilton County Court of Common Pleas Judge Susan Laker Tolbert, Mr. Epling talked openly about his relationship and the financial support he provides for Ms. Hatter and her son.
"Well, I provide the household, purchased the food, the household goods, the clothing, medical bills for (her son), medical bills for (Ms. Hatter)," he said while on the stand.
A review of the Hamilton County court records shows that Mr. Epling has said under oath that Ms. Hatter's relatives borrowed at least $2,500 from him, in addition to about $2,000 he paid them to do odd jobs around Ms. Hatter's home.
Mr. Epling said he helped pay for Ms. Hatter's sister's funeral, for babysitting and tutoring at Sylvan Learning Center for Ms. Hatter's child, and for a Pontiac sedan that is listed in Ms. Hatter's name.
In addition, he spent $15,000 to furnish the home he shared with Ms. Hatter, a two-story brick house he paid for but deeded to Ms. Hatter.
"It was not a gift," Mr. Epling said, "but it was deeded in her name for the purpose that if something were to happen to me that Cheryl and (her son) would have some security in the future."
Mr. Epling testified he paid for Ms. Hatter's weekly methadone treatments at a southeastern Indianan clinic and other drug treatment programs.
That includes between $4,000 and $6,000 for surgery for Ms. Hatter. Mr. Epling testified that the ultimate outcome of the innovative surgery - called "Ultra Rapid Detoxification" - was that his girlfriend would stop craving addictive drugs.
"We are, I guess, informally engaged," Mr. Epling said during the March testimony. "We plan on being married after my divorce is final, after the drug treatment that she is currently in is completed."
Mr. Epling's divorce is pending in Boone County Family Court.
Mr. Epling acknowledged that he paid between $10,000 and $20,000 for Ms. Hatter's divorce from Khaled Anton Saleh Hatter, a Jordanian national.
Officials said the embezzlement investigation involving the FBI, U.S. Attorney, Commonwealth Attorney and Kentucky State Police, may continue for months.
Florence Information Systems Manger Valerie Bowman has been named interim finance director while Mr. Epling remains suspended without pay.
Stephenie Steitzer contributed to this report.
E-mail jhannah@enquirer.com
