Lake Mills school official arrested, charged for alleged misuse of school funds

Published 5:06 pm Monday, July 18, 2011

LAKE MILLS, Iowa — The former business manager at Lake Mills Community School District accused or misusing more than $200,000 in school funds was arrested and charged in Winnebago County District Court on Monday with six counts tied to the allegations.

The charges come after the release of a report from the Iowa state auditor at the end of June, which allege Christine Mathahs, 44, of Lake Mills, Iowa, spent more than $260,000 inappropriately between May 21, 2005, and April 1, 2010. She resigned from the position of business manager on Dec. 9, 2010.

According to Winnebago County Attorney Adam Sauer, Mathahs now faces the following criminal charges tied to the allegations:

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• Money laundering

• First-degree theft

• Fraudulent use of a credit card

• Felonious misconduct in office

• Falsifying public documents

• Tampering with records

All the charges are felonies except for the tampering with records charge, which is an aggravated misdemeanor.

The auditor’s report stated for most of the improper spending, Mathahs would reportedly issue checks from the district bank account to credit card companies to pay her debts. On other occasions, she reportedly overpaid and then received refunds from the companies or redeemed checks for cash, among other allegations.

According to a news release from the Winnebago County Attorney’s Office, Mathahs faces up to 37 years in prison and $48,750 in fines. She is being held in the Winnebago County Jail on a $5,000 cash bond.

The Iowa Division of Criminal Investigation, the Winnebago County Sheriff’s Office, the Lake Mills Police Department and the Iowa State Auditor’s Office are continuing to investigate.