- Associated Press - Wednesday, March 5, 2014

ALCOA, Tenn. (AP) - A state comptroller’s audit found a former Alcoa City School District employee diverted nearly $500,000 from the district and two nonprofits where she served as treasurer.

According to the audit, the woman was responsible for managing the school district’s federal funds. Using fraudulent invoices, she diverted money into accounts for the Tennessee Attendance Supervisors Steering Committee and the East Tennessee Attendance Supervisors Association. She then used the money to pay her mortgage; buy food, jewelry, clothing and iTunes songs; and invest in a local gym.

She also used the school district’s credit cards for personal purchases and received reimbursement for 70 trips she did not take.

The audit does not name the woman, because she has not been indicted. The results of the investigation have been turned over to prosecutors.

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