Salt Rock Sewer PSD sues insurer, former employee for stolen funds

By Kyla Asbury | Jan 12, 2010

HUNTINGTON -- The Salt Rock Sewer Public Service District is suing its former office manager and an insurance company after almost $100,000 was stolen from company funds.

On Dec. 11, 2007, during a regular monthly meeting, Salt Rock Sewer PSD discovered certain funds were missing from the customer deposit bank account and the operation and maintenance bank account, according to a complaint filed Dec. 10 in Cabell Circuit Court.

The company had its accountant, Michael D. Griffith, conduct an analysis of all funds received between May 1, 2006 and Dec. 31, 2007, upon which it was discovered that funds in the amount of $95,286.14 in checks and cash were received, but never deposited.

Alma F. Adkins was the company's office manager and was responsible for depositing the money into the accounts, according to the suit.

Salt Rock Sewer PSD claims it still is missing about $61,560.52 and made a claim to American Alternative Insurance Corporation seeking reimbursement.

Adkins was terminated from her employment and on Sept. 26, 2008, was indicted for embezzlement. Salt Rock Sewer PSD claims Adkins is believed to be solely responsible for the loss sustained by the company from May 1, 2006 until Dec. 31, 2007.

According to the suit, the insurance company has yet to compensate Salt Rock Sewer PSD in accordance with the applicable insurance policy provisions for the loss sustained as a result of Adkins' dishonesty and theft.

Salt Rock Sewer PSD is seeking compensatory damages in the amount of $61,560.52. H. Wyatt Hanna III is representing the company.

The case has been assigned to Circuit Judge David M. Pancake.

Cabell Circuit Court case number: 09-C-964

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