JOHNSON CITY, Tenn. — The former finance director of Appalachian Regional Coalition on Homelessness and her husband have been indicted on theft charges.
A grand jury in Washington County, Tennessee, indicted Julie Beale, of Johnson City, Tennessee, on one count of theft over $60,000, one count of conspiracy to commit theft over $60,000 and money laundering. Her husband, Sam Beale, was indicted on one count of theft over $60,000, one count of conspiracy to commit theft over $60,000, one count of financial exploitation of an elderly or vulnerable person and one count of theft over $2,500.
The indictments came after the state’s comptroller investigators, working in conjunction with the U.S. Department of Housing and Urban Development Office of Inspector General, found she stole at least $119,582 from the organization, according to a news release. ARCH provides services for the homeless in Northeast Tennessee.
Beale misappropriated the nonprofit’s funds between November 2013 and March 2018, the release states. It claims that the couple misappropriated $75,630.06 by making 150 ARCH payments to Sam Beale for work he did not perform. Sam Beale worked as ARCH’s intermittent maintenance provider during the duration of his wife’s tenure at ARCH.
Julie Beale also issued fraudulent ARCH payments to herself totaling $32,937 and made payments to another family member totaling $5,081.69, the release states. It adds that she used ARCH money to pay rent totaling $3,375. Investigators also said in the release that she used the ARCH debit card to make a total of $2,183 in unauthorized and personal charges and issued a check to pay a personal $375 debt.
Investigators said Beale concealed her scheme by applying false signatures on checks, making false entries into ARCH’s accounting records and creating false invoices. She resigned March 2, 2018.
“This case underscores the importance of not giving sole control of financial operations to one person,” said Comptroller Jason Mumpower. “Separating key financial duties and providing increased oversight helps to reduce the risk that fraud will go undetected.”