Former school district employee in Navajo County accused of stealing more than $40,000

A former Joseph City Unified School District employee was indicted after officials said she stole more than $40,000 in district funds, the Arizona Attorney General's Office announced on Tuesday. 

Tonnie Rae Pugh was accused of using $40,436 collected from faculty, students and parents between July 2011 and January 2018 for her own personal use, according to a news release from the office. 

Part of Pugh's duties as the district's high school attendance secretary included collecting and depositing funds from student club fundraisers, athletic event ticket sales, dances and other fees, a financial investigation report from the state Auditor General's Office states. 

She also intermittently served as the district's wrestling tournament director, during which she collected and deposited tournament entry fees from participating school districts, the report said. 

Pugh was employed with the school for nearly 30 years before resigning in February 2018 when district officials "questioned her about irregularities in her bank deposits," according to the report.

"Ms. Pugh acknowledged to District officials and later to us that she 'borrowed' District money to pay personal bills," the report said. "As of this report date, Ms. Pugh has paid the District $9,950 for a portion of the amount she 'borrowed.' "

The report states Pugh also falsified records to conceal her actions, including substituting the funds she misappropriated with the payments she collected while serving as wrestling tournament director. 

"Ms. Pugh was able to conceal about 70 percent of her alleged cash theft with tournament entry fee checks," the report said. 

Pugh on Nov. 2 was indicted on charges of fraudulent schemes and artifices, violation of duties of a custodian of public monies and theft, according to an indictment filed in the Navajo County Superior Court. 

Located about 20 miles east of Winslow in Navajo County, Joseph City Unified School District serves more than 500 students from preschool to 12th grade.

Reach the reporter at chelsea.curtis@arizonarepublic.com or follow her on Twitter @curtis_chels. 

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