Audit and Investigation into Theft of Nearly $219,000 From the City of Hilliard Continues

Further insight into the incident - possible tweaking of city procedures and protocols to follow

City officials continue to say they are hopeful the loss will be recouped through its insurance carrier but in the meanwhile, the city’s operations will not be disturbed, said David Ball, Hilliard’s director of community relations.

“We don’t need to make any cuts because (of the loss). The city has reserves and carryover funds and we hope our insurance will cover the loss,” Ball said.

A criminal investigation into the incident continues and Hilliard City Council awaits the results from it and the internal audit.

“I have spoken with the auditor and inquired into specifics regarding the circumstances. There are many unanswered questions but I want to see what the auditor’s findings are, and then understand the findings and recommendations.”

“I will push to make those and the criminal police report public as soon as allowable and final.” 

Councilmember Les Carrier

Police Investigation Updates

Hilliard Det. Brandon Long is actively investigating the incident that originated from an email phishing incident in December.

But Hilliard City Manager Michelle Crandall was not made aware of the incident until Jan. 31, when former Finance Director David Delande informed Crandall.

After a brief interval Delande was “terminated” Feb. 13 and an accounting assistant in the city’s finance department resigned Feb. 15, Ball said.

Each had been placed on administrative leave Feb. 6 by Crandall.

Delande reported the theft to Hilliard police Jan. 6 yet Crandall was still not made aware of the incident until Delande informed her Jan. 31, according to Ball.

The delay in Crandall being made aware is an additional concern according to Carrier.

“This whole matter is just so frustrating. Many have questioned why our finance team did not change when Ms. Crandall arrived, especially after the pool theft.”

A Background of Recent Fraud Against the City

Heather Ernst, Hilliard’s former director of recreation and parks, pleaded guilty in Franklin County Common Pleas Court in October 2018 to one count of theft in office, a third-degree felony, and one count of attempted tampering with records, a fourth-degree felony, and sentenced to 12 months in prison, according to records from the Franklin County Common Pleas Court and the Ohio Department of Rehabilitation and Correction.

Ernst was ordered to pay restitution in the amount of $271,898, plus court costs of $268 for a total of $272,166, which prosecutors and Ernst's attorneys agreed upon as part of the settlement in the criminal trial but Ernst had been accused by Hilliard investigators of stealing more than $500,000 in daily admission fees from the city's two pool facilities from May 2013 to fall 2017.

The incidents occurred during the administration of former Hilliard Mayor Don Schonhardt.

In November 2018, Hilliard voters approved a charter amendment that replaced the elected strong mayor with a city manager appointed by City Council.

Crandall began serving in January 2020 as Hilliard’s first city manager and Delande remained as the city’s finance director.

Steps Towards the Future

A search is underway for a new finance director with the process still being developed and vetted, according to Ball.

“We are still looking at whether it will be a national search or a regional search,” and other specifics.”

While doing so, Karrie Martin, a fiscal officer in the city’s finance department, is the acting finance director, according to Ball.

The theft of nearly $219,000 from the city began with an email from a source posing as an existing vendor of the city, Strawser Paving Co., on Dec. 8.

After a follow-up email on Dec. 19, a city employee changed the bank-account routing information for the company and on Dec. 20, a payment of $218,992 was issued to that account, according to Ball.

While taking such action is standard procedure for an accounting assistant, in this instance, a verification protocol the city has in place was not followed, Ball said.