Attorney General Jon Bruning

News Release

                        FOR IMMEDIATE RELEASE                                   Contact: Holley Hatt

                        July 18, 2007, 4:15 pm CDT                                                    402.471.2067                         

Former City Clerk Ordered to Pay $14,000

Back to City of Clarkson

(Lincoln, NE) Attorney General Jon Bruning today announced former Clarkson City Clerk Lorraine Smith, 56, was sentenced by the Colfax County District Court to five years of supervised probation for stealing from the city. As a condition of her probation, she was ordered to pay $14,375.83 in restitution to the City of Clarkson.

“It’s hard enough for a small town to provide quality government services without someone sneaking money out the back door,” Bruning said. “Today’s sentence makes it clear that no government official is above accountability.”

As part of her probation, Smith is required to take courses in money management and appropriate decisions, establish a personal monthly budget, and allow her probation officer to monitor her banking and credit card accounts.

According to internal city and Nebraska State Patrol investigations, the city reimbursed Smith’s personal health insurance premiums as a part of her employment benefits package. Between October 2003 and August 2005, even though her insurance rates had dropped, she continued over-billing the city and collecting premium reimbursements at higher rates. By 2005, she was collecting up to $840.65 per month above her actual insurance costs. In August 2005, the 13-year city employee was terminated as city clerk. In May, she pleaded guilty to one felony charge of theft by unlawful taking.

Under Nebraska law, when over $1,500 is stolen, theft by unlawful taking is a class III felony. Assistant Attorney General Jeff Gaertig handled the case.

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