By Brenna R. Kelly
Enquirer staff writer

FLORENCE - As he stole money from city coffers, Ron Epling kept bank statements, canceled checks and other records of his financial wrongdoing.

It is those records that have now allowed Florence to recover more than $4.1 million the city's former finance director took.

"Mr. Epling was a very good accountant, he kept excellent records," said Mayor Diane Whalen, "and his records were available to us through things that were left in his office."

Using the records, the city was able to convince Epling's widow and the federal government that Epling's assets, including homes, cars, cash and a business, were obtained with stolen city money.

City officials say they will never know exactly how much Epling stole because he worked for the city for 15 years before the theft was discovered in December 2002. When he pleaded guilty to 35 counts of theft, Epling admitted to stealing $2.8 million over seven years.

Prosecutors maintained the amount was closer to $4.9 million.

Epling died last October after serving just seven months of his 16-year prison sentence at Blackburn Correctional Institution in Lexington.

The 52-year-old's death made it harder for the city to recover the money, said attorney Peter Koenig.

Records Epling left behind helped attorneys trace some of the money to the homes Epling bought for his wife and girlfriend and investments in a chain of Northern Kentucky hair salons.

Last December, the city sued in Boone Circuit Court seeking assets from Epling's widow Billie K. Epling and the hair salon chain.

Billie Epling agreed to a settlement, which included turning over her Triple Crown home, worth an estimated $700,000.

Billie Epling also agreed to pay $745,000 for the city's potential interest in E'Clips, a chain of nine Great Clips hair salons.

From the settlement the city will also receive:

• The home at 1014 Reigh Count Court in Triple Crown.

• $420,000 in cash.

• Coin collection, traveler's checks, and cash found in Epling's office.

• $150,000 in a retirement account.

• The city's right to try to recover tax deposits with the IRS and Kentucky Revenue Cabinet.

As part of the settlement, Billie Epling will get to keep Ron Epling's condo in Triple Crown and two sport-utility vehicles.

In a separate case, the U.S. Attorney's Office filed suit in federal court seeking Epling's assets. From that case, the city will get about $170,000 in proceeds from the sale of a house in Delhi Township owned by Epling's girlfriend, Cheryl Hatter.

House for sale

The city will hold an open house at Epling's former home at 1014 Reigh Count Court from 2 to 5 p.m. July 25. It will then take sealed bids on the home.

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E-mail bkelly@enquirer.com