PTO treasurer accused of embezzlement

GREENVILLE, Mich. (WOOD) - Greenville Department of Public safety is investigating the embezzlement of more than $12,000 from the Walnut Hills Elementary Parent-Teacher Organization.

The suspect in the case is PTO treasurer Laura Outen, her attorney Jeff Kortes confirmed to 24 Hour News 8 Thursday.

Members of the PTO board first noticed financial irregularities involving between $12,000 and $18,000. After the district's finance director looked into the discrepancies, he suggested PTO officials contact police.

"She feels terrible about this," said Kortes. "It was not a situation to buy lavish things, but was a dire financial situation in order to keep her house afloat."

Kortes went on to say his client "is working on a process to repay the PTO."

Outen, 34, will meet with detectives Friday afternoon, Kortes said.

Investigators expect to wrap their investigation within the next week and turn it over to the Montcalm County Prosecutor's Office for possible charges.

Outen was arrested in 2007 for felony uttering and publishing and felony larceny in a building. In December 2011, she pleaded guilty to misdemeanor larceny of less than $200, and sentenced to one day in jail and six months probation. 

Outen has also had financial trouble in the past few years, including a failed bankruptcy and several civil lawsuits for unpaid bills. It appears appear she was elected PTO treasurer in May 2012 while still on probation for the misdemeanor financial crime, while still in bankruptcy and with at least one pending civil case for unpaid bills. 

Greenville Public Schools Superintendent Pete Haines told 24 Hour News 8 the Walnut Hills Elementary School PTO organizes and funds a lot of projects for the school and students, including the school carnival, a free Christmas "store" for students to shop for their families, Christmas food boxes and a book fair fundraiser. It also funds subscriptions for publications like Scholastic News, supplemental school supplies, school pictures and more. The PTO is currently involved in major fundraising and grant-writing for playgrounds, helps with fifth grade graduation and sponsors curriculum nights, the superintendent said.

A planned school variety show organized by the PTO will still go forward.

Haines said the district may step forward and give the PTO financial help if needed. Other PTOs in the district have already offered to help Walnut Hills Elementary School.

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Walnut Hills Elementary School