CORBIN — Aug. 1, 2012.pdf
Times-Tribune Staff Report
An audit of former Whitley County sheriff Lawrence Hodge’s 2010 tax settlement account has been released by Kentucky State Auditor Adam Edelen.
The audit found no opinion could be issued as to whether or not the former sheriff’s financial statements fairly presented transactions. It also noted four areas of non-compliance:
—Hodge failed to adequately segregate accounting duties among his staff
—Hodge collected taxes before signing the official receipt
—Hodge failed to settle taxes for prior years by depositing personal funds to eliminate the reported known deficit of $87,590. Also, unexplained surpluses had not been deposited into an interest bearing escrow account.
—Hodge didn’t remit to the Kentucky State Treasurer tax escrow money held for more than three years.
Hodge did not respond to any of the non-compliance issues.
Hodge is serving a 15 and a half year sentence in federal prison for money laundering, extortion and drug distribution. He also faces 21 state charges of abuse of public trust and evidence tampering.