By PETER HUSSMANN
Mingo's former city clerk claims she was the target of a malicious prosecution by area law enforcement following a state audit that lead to three felony counts filed against her, charges the state attorney general's office would later move to dismiss due to insufficient evidence.
Amy M. Berkey filed suit in Jasper County District Court last week seeking monetary and punitive damages from a host of defendants, including the City of Mingo, Jasper County, former deputies Dennis Stevenson and Brady Lewis, Harley Steenhoek and then City of Mingo Attorney Richard Phelps.
In the petition, filed by Des Moines lawyer Bruce Stoltze, Berkey claims that during her tenure as city clerk from October 2002 to June 2006, she was charged with oversight of utility billing, city financial records, payroll and minute keeping for the city council. During that time, she claims to have found numerous instances of "problems with the financial system," situations she unsuccessfully attempted to resolve with the city council and then Jasper County Attorney Steve Johnson.
The suit contends that in the fall of 2005, Steenhoek, a member of the Mingo Volunteer Fire Department, had contact with Johnson over concerns of missing funds, a situation he blamed on actions attributable to Berkey. The city for a period of time was unwilling to pay the cost of an audit, a move supported by Berkey, with Phelps tending his resignation as city attorney in protest. In December, the council agreed to authorize an audit by the state auditor.
Due to family obligations, Berkey, a Colfax resident at the time, tendered her resignation in April 2006 but agreed to remain in her capacity with the city until the end of June. In July 2006, a state audit of the City of Mingo's financial records pertaining to the time frame Berkey worked for the city commenced. Berkey told state auditors she would be available to assist but due to a computer crash, several utility records were unavailable for the period in question. She was not asked to assist in the audit.
The petition goes on to state that in August 2006, in an application for a search warrant, Steenhoek had brought to the attention of former county attorney Johnson that he had questions and concerns relating to financial matters involving the volunteer fire department. Specifically, the petition states, Steenhoek "made accusations" that Berkey "was stealing money" from the city. An application for a search warrant was signed by Phelps and Steenhoek as "concerned citizen" that was subsequently carried out at Berkey's home, the petition states.
In April 2008, the Iowa State Auditor issued a press release that identified undeposited collections, improper disbursements and unsupported disbursements that implicated Berkey. The news release garnered local media coverage.
In July of that year, deputies Stevenson and Lewis held a meeting with Berkey and her attorney where the city's financials were discussed, including a finding in the audit report that alleged a Goalsetter basketball hoop appeared to have been purchased with city finances, though substantiated receipts for the purchase she was later able to produce. She also informed the deputies that a backup disk was available at Mingo City Hall that contained all the financial data.
That same month, the petition states, the City of Mingo's insurance carrier made payment of $10,000 on Berkey's bond as city clerk and paid $10,000 for the audit even though "a thorough investigation of the detailed statement of claim was never conducted either by the Jasper County Sheriff's Office, Jasper County Attorney's Office, the insurance carrier or the City of Mingo."
In November of 2008, Berkey was arrested and charged with one count of first degree theft and two counts of felonious misconduct in office. The theft charge alleged the misappropriation of more than $10,000 of city funds with the misconduct charges stemming from her role as city clerk. On Nov. 17, 2008, the county attorney's office issued a media release regarding the criminal complaint against Berkey.
In December 2008, the Jasper County Attorney's Office notified Berkey's defense lawyers that the prosecution would be turned over to the attorney general's office. The state entered an appearance in the matter in January 2009 but six months later the prosecution "declared that the State had determined sufficient evidence did not exist to warrant an indictment of Ms. Berkey and that the State would not file an indictment on the charges. In September 2009, the court granted Berkey's motion to dismiss the charges.
The petition goes on to state that Phelps, in a letter to the Mingo mayor, indicted his concern that the State was not going to pursue an indictment and "explained to the Mayor that he is not sure that they would be able to recover from her civilly." In addition, at a September council meeting, the petition alleges, defendant Steenhoek commented the "whole purpose" of the audit "was to hang Amy" and that "she's running scot free and going to continue." Additional derogatory statements were alleged to have been made against Ms. Berkey at that meeting and beyond, the petition continues.
The lawsuit claims the sheriff deputies did not conduct a thorough investigation but based the charges on the contentions of Steenhoek and Phelps "without probable cause." Each of the defendants are accused of acting with malice against Berkey.
In addition to the malicious prosecution claim, Berkey is also alledging false imprisonment, violation of due process, slander and abuse of process.
Berkey is seeking a jury trial. The defendants in the case have yet to respond to the allegations.
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