Officials: Franklin resident forged, deposited checks into personal account, altered records

Over the span of nearly five years, nearly $50,000 was stolen from the Whiteland Fire Department, and felony charges have been filed against the former bookkeeper.

Divonna Hendrickson, 52, Franklin, was charged with five felony counts of theft.

Hendrickson worked as a firefighter for the department and volunteered as the secretary/treasurer for 10 years. Investigators found that starting in 2013, 68 checks totaling $49,300 were written from the fire department’s accounts and deposited into Hendrickson’s personal account.

The fire department’s records were altered to show that money went to other expenses, according to court records.

When investigators interviewed her, Hendrickson told them she had taken the money and altered the records, and that she needed it to help her children, the report said. Hendrickson could not be reached Thursday.

The investigation into the missing money began this summer when town officials were going through records as part of the preparations for a possible merger, where the fire department would be run by the town, instead of as a separate entity as a fire district, Whiteland Town Manager Norm Gabehart said.

No merger has been approved, but is being discussed by officials, he said.

Officials found three checks were written with a signature of Dave Gabbard, the former fire chief, after he left his position. When asked, Gabbard said he did not sign the checks, Gabehart said.

Within hours, officials found that more checks were suspicious, and they contacted police, Gabehart said. The Johnson County Sheriff’s Office began an investigation into the fire department’s finances, and the Indiana State Board of Accounts was asked to do an audit, which still is ongoing, Gabehart said.

The sheriff’s office investigation found multiple checks from the fire department’s general and ambulance funds that were recorded as being used for fire department expenses, but instead were cashed by Hendrickson, according to court records.

From 2013 through 2017, anywhere from four to 21 checks were deposited into Hendrickson’s account each year, court records said.

And at times, multiple checks were written in one day, the records said.

The investigation also showed that the fire department’s records had been altered, and Hendrickson told investigators she had some records at her home, according to court records.

The amount that was taken did not have a significant impact on the fire department, which has a contract for $250,000 to provide fire service to the town of Whiteland and some of the rural area around it, Gabehart said. Officials hadn’t noticed the money was missing until the investigation began, he said.

After the missing money was discovered, officials sent a letter to Hendrickson saying she was being removed from her position, Gabehart said. Hendrickson was a volunteer firefighter with the department and could receive an annual stipend and payment if she went on runs as any other firefighter. She was not paid for being the secretary/treasurer, Gabehart said.

Under the rules at the time, Hendrickson and the chief would both need to sign any checks from the department, but she also was allowed to sign them on her own if the chief couldn’t. But the department didn’t have a process to reconcile the accounts, Gabehart said.

That would allow someone to record whatever they wanted into the department’s records for expenses paid out of the fire department’s funds, he said.

Now, Gabehart and his assistant are handling the fire department’s expenses, requiring both signatures and accounts are reconciled monthly, he said. If a merger is approved, the town will handle the fire department’s expenses, he said.

Hendrickson, 4113 Magnolia Drive, was arrested on six counts of theft and taken to the Johnson County jail, where she was released on $3,600 bond.