Tourism Office Probe Ends in Arrest
By John Ferak, Omaha World-Herald, Neb.
Oct. 18–A former employee at the Nebraska City Tourism and Commerce Office has been arrested in connection with an embezzlement probe.
Lori Sterling, 43, of Nebraska City is accused of stealing at least $1,500 from the tourism office in the past year, according to police. The Nebraska State Patrol arrested Sterling on Monday on suspicion of felony theft.
The Otoe County Attorney’s Office said it expects to file a formal charge against Sterling by week’s end. Sterling remained in the Otoe County Jail without bail, awaiting her arraignment.
“She’s the only person who has been charged in the complaint,” Police Chief David Lacy said Wednesday.
In an Aug. 10 interview with The World-Herald, Sterling denied that she had anything to do with the missing funds. Lacy said the police investigation showed otherwise.
City Council member Mark Mercer said Sterling’s arrest should remove the cloud of suspicion cast over the tourism office since last summer.
Mercer had threatened to withhold monthly payments of city funds to the tourism office until the agency’s financial problems were rectified. The tourism office receives about $65,000 in city funds as part of its annual $200,000 operating budget.
The tourism office “has restored my confidence that taxpayers’ funds are safe in that building,” Mercer said Wednesday.
Jim Johnston, executive director of the tourism agency, said in August that Sterling was fired in connection with embezzlement allegations. Johnston said that at least $2,900 disappeared, mostly in cash.
His office spent about $5,000 to hire an Omaha accounting firm to audit the tourism office’s finances and scrutinize bookkeeping practices.
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