By Jim Hannah
The Cincinnati Enquirer

BURLINGTON - An attorney for convicted embezzler Ronald Joseph Epling is in plea negotiations with federal authorities that include paying back millions of dollars stolen from taxpayers.

Senior Judge Stan Billingsley of Carrollton granted a continuance of a restitution hearing in Boone Circuit Court upon hearing the news Tuesday morning. The hearing was called to work out details of how Epling will repay $2.8 million - with 8 percent interest - he admitted in state court to stealing.

"We are pleased all these government entities are working together in an effort to resolve his level of incarceration and the amount of restitution," said Epling's attorney, Burr Travis of Florence.

"Hopefully in the next 30, 60 or 90 days ... we will be able to have Mr. Epling indicted in the federal system and resolve restitution, which will be an agreeable figure to all, and put this chapter behind all of us."

Epling was sentenced in state court March 26 to 16 years in prison after pleading guilty to 35 counts of theft, totaling $2.8 million since 1995. Prosecutors say the stolen tax money was used to pay for a double life that included a mistress and gambling junkets.

Commonwealth's Attorney Linda Tally Smith in Boone County says the true figure stolen is closer to $4.9 million over the nearly 15 years he was employed by the city. It is unclear if Smith intends to file additional charges or if any other thefts will be prosecuted in federal court, where such charges generally carry stiffer penalties.

Federal authorities have considered two options in prosecuting Epling, according to a letter from the U.S. Probation Office dated March 21 and submitted to Boone Circuit Court.

The first option would charge Epling with theft, fraud and deceit. A tentative sentence calculated by U.S. Probation Officer Kimberly Heidel places Epling in federal prison for seven years and three months to nine years on the charge.

The second option carries a stiffer sentence. By charging Epling with money laundering, Heidel calculates Epling would serve 11 years and three months to 14 years.

Travis declined to speak about any specifics of the talks with federal authorities, and a spokeswoman with the U.S. Attorney's Office in Lexington has repeatedly declined to comment on the case.

Federal authorities have already taken steps to recoup the embezzled tax money by seizing $400,000 in bank accounts under Epling's control and entering a court injunction preventing the sale of three homes:

• A $600,000 home in Richwood he bought for his wife.

• A $200,000 home in Delhi Township he bought for his girlfriend.

• A Richwood condominium. It is unclear what Epling's equity is in the condominium.

Epling was earning $66,000 per year to manage Florence's $18 million annual budget when he was arrested in December. Smith has said Epling deposited checks written to the city's capital improvement fund into a personal bank account that he had titled "Florence Capital Improvements" at a local bank. He paid back the real Florence capital improvements fund by diverting checks written to the city for taxes, licenses and other fees.

Smith said an area from which Epling stole the most was city taxes paid on insurance premiums.

E-mail jhannah@enquirer.com