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Former school employee pleads guilty to fraud

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Posted at 5:05 PM, Jun 01, 2016
and last updated 2016-06-01 18:05:38-04

A Janesville school employee pleaded guilty to seven felony charges, after being accused of depositing more than $303,000 of taxpayer dollars into her personal accounts.

According to the criminal complaint obtained by TODAY'S TMJ4, Jessica Warner-Reed served as the banker for Craig High School. She was responsible for collecting money from advisors for various clubs, teams, groups, and activities.

From 2009 to 2015, Warner-Reed deposited hundreds of thousands of dollars into her personal account, according to the criminal compliant.  A Department of Revenue analysis of banking records and investigative reports,revealed that Warner-Reed embezzled more than $282,889 in cash and checks after repaying the schools account $21,179.  

"As required by federal law, all sources of gross income are required to be reported.  The Wisconsin income taxes evaded from 2009-2014 is alleged to be $16,407,"  Wisconsin officials said in a written statement. 

Pursuant to Wisconsin law, filing a false or fraudulent tax return is a felony. Warner-Reed now faces up to six years in prison and $10,000 in fines for the one count of False Income Tax Return.  On all seven counts, Warner-Reed could faces up to more than 43 years in prison, as well as $85,000 in fines, according to officials. 

Bail has been set at $5000 for Warner-Reed who is also facing one count of misconduct in public office, one count of theft in a business setting over $10,000, four counts of forgery, and one count of false income tax return.

She pleaded guilty May 25. Sentencing is scheduled for Aug. 10, 2016.