By Stephenie Steitzer
Enquirer contributor

Epling

FLORENCE - The city's finance director of 15 years was arrested Monday on charges that he embezzled $125,000 from the city's capital improvement fund.

Florence police placed Ronald Joseph Epling, 51, in the Boone County Jail in lieu of $1 million cash bond after irregularities involving city funds were discovered during an annual audit by Rankin, Rankin and Co. of Fort Wright.

Mayor Diane Whalen said the Kentucky State Police, the commonwealth's attorney's office and the FBI are continuing to investigate and may bring further charges against Mr. Epling.

"It was a complete and total shock," Ms. Whalen said Monday.

Ms. Whalen said Rankin, Rankin contacted city officials last week to discuss "serious questions" regarding irregularities auditors found in the city's 2000-01 records.

In the criminal complaint filed Monday in Boone County District Court, Mr. Epling is charged with theft for taking a $125,000 check intended for the city's capital improvements fund and depositing $15,000 of that check into a personal checking account and $110,000 into a personal savings account at Fifth Third Bank.

A note at the bottom of the complaint says Mr. Epling is "suspected of multiple thefts over time."

The complaint lists an address of 10837 Sawgrass Court, Union, for Mr. Epling, but Boone County Jail officials say he has an Ohio driver's license and a Delhi Township address is listed on his arrest warrant.

Ms. Whalen said Mr. Epling, who has been suspended without pay, makes between $60,000 and $65,000 a year.

Florence city attorney Hugh Skees said he does not know if Mr. Epling has an attorney. Boone County jail officials could not say Monday night who is representing Mr. Epling.

Fast-growing Florence, one of Kentucky's richest cities, has been operating at a six-figure surplus on its annual budget for nearly a decade.

This year's 2000-2001 budget was $18 million.

Ms. Whalen said the city pulled journal entries and computer files for the FBI and the commonwealth's attorney's office while Mr. Epling was on vacation last week.

"(Investigators) wanted to raise questions with the city first," she said. Ms. Whalen said the city loss is protected by a bonding company.

The city's information systems manager, Valerie Bowman, has been named interim finance director.