By Jim Hannah
The Cincinnati Enquirer

Ronald Epling, 51, former finance director for the city of Florence, listens as Boone County Commonwealth's Attorney Linda Tally Smith argues that he should receive the maximum sentence of 20 years for stealing $2.8 million from the city. (Patrick Reddy photo) | ZOOM |

BURLINGTON - Embezzling $2.8 million of Florence taxpayers' money got former finance director Ronald Joseph Epling a minimum of three years and two months in a state penitentiary.

"I don't think that is enough," said Florence Mayor Diane Whalen after the sentencing Tuesday. "He has violated the public trust and cast a shadow over all of us. That makes me very angry. Everybody's not that way, and he's put us in a bad light."

Epling was sentenced to 16 years in state prison on 35 felony counts of theft. He will be eligible for parole after serving 20 percent of his sentence.

Senior Judge Stan Billingsley of Carrollton declined to sentence Epling to the maximum of 20 years in state prison, citing Epling's cooperation.

"I have never in 32 years (on the bench) seen a defendant more willing to assist in making restitution," Billingsley said. "That just doesn't happen very often."

The 51-year-old Epling appeared in Boone Circuit Court in a black-and-white striped jail jumpsuit and was noticeably thinner than when he was arrested late last year.

"I'm truly sorry," Epling said as Whalen and other City Council members watched from the packed gallery. "I intend to try to make amends ... including restitution and public service. I hope I can take this dark and sad chapter of my life and make it a positive."

Boone County Commonwealth's Attorney Linda Tally Smith argued the mastermind behind the Tristate's biggest public embezzlement case should be sentenced to the maximum.

Armed with letters written to the judge by Whalen and City Council members, Smith said Epling's crime wasn't victimless.

"For years now, the Florence taxpayers have been subsidizing his extravagant lifestyle," Smith said. "He has been living off the coattails of the residents of Florence."

Smith then rattled off Epling's known assets: Two homes in the Northern Kentucky golf course community of Triple Crown. A home paid for in Delhi Township. A successful chain of hair salons across Northern Kentucky.

Even as Epling's fate was debated in court Tuesday, authorities say they are still tabulating the city's total losses. Epling was charged with thefts dating back to 1995, but Smith said the embezzlement had been going on since 1988. She believes the true figure stolen is closer to $4.9 million.

Smith said investigators have determined that some years Epling was embezzling the equivalent of 2 percent to 5 percent of the city's annual operating budget.

Epling was earning $66,000 per year to manage the city's $18 million annual budget when he was arrested.

Prosecutors accuse Epling of depositing checks written to the city's capital improvements fund into a personal bank account he had titled "Florence Capital Improvements" at a local bank. He covered his tracks by paying back the real Florence capital improvements fund by diverting checks written to the city for taxes, licenses and other fees. Smith said an area he stole the most from was city taxes paid on insurance premiums.

Defense attorney Burr Travis said his client deserves leniency because he is cooperating with authorities attempting to recover the missing tax money. Travis listed assets that could be turned over to the city. The list included $400,000 in cash that has already been seized by federal authorities, $400,000 to $500,000 in real estate and $75,000 to $100,000 in annual profits from the chain of barbershops.

Travis also said Epling plans to ask the Internal Revenue Service to reimburse him $300,000 he had prepaid in taxes and give the money to the city.

"Since day one, Mr. Epling has cooperated with police," Travis said. "Mr. Epling confessed. He took the money. He admits it. He is sorry and wants to move on to the next phase of his life."

Billingsley indicated he might consider shock probation if Epling made a "Herculean effort" to make $2.8 million restitution - with 8 percent interest - to the city. A restitution hearing has been set for April 8.

Both Travis and Smith said federal charges are likely to be filed against Mr. Epling in the embezzlement scheme. One possible charge the U.S. Attorney's Office could bring is money laundering, punishable by a 11 years and three months to 14 years in prison. Parole is not granted in the federal system, and Epling would likely serve 85 percent of any sentence handed down by a judge.

Travis said the federal case seems to have been delayed because an FBI agent investigating it has been reassigned for the time being to issues of national security.

E-mail jhannah@enquirer.com