PANAMA CITY — A former Panama City administrator arrested Thursday for embezzling thousands of dollars from a local charity.
According to a report by the Panama City Police Department, Michael Johnson, former director of network development for Panama City, is accused of embezzling more than $470,000 from the After School Assistance Program of Friends, a nonprofit that supports the city’s after-school program.
Johnson, who has run the program since 2012, now faces a higher theft rate of more than $100,000, which is a second-degree felony.
“An account with (the program) at Hancock (Whitney) Bank was discovered that only had Michael Johnson on the signature card, and Johnson had exclusive access to the checkbook,” the report said. “Statements were received from Hancock for two Hancock accounts. , and upon review it was discovered that there were checks that Johnson had written to himself over time for amounts. “
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The law enforcement branch said the first check Johnson made to himself on Feb. 1, 2012, for $9,839. The largest check was written by himself on November 13, 2020, for more than $37,215.
“These checks were addressed to (Johnson) and signed through (himself) checks marked with the Friends of Hancock After School Assistance Program,” the report said. “There was no explanation along the lines of the note on the checks and no justifiable reasoning. “I found out after reviewing the company’s articles and interviewing the board members. “
In an email, Panama City spokeswoman Caitlin Lawrence wrote that Johnson was in Panama City from May 4, 2004, to Oct. 3, 2022.
He resigned from his position on Oct. 3 “immediately after City Manager Mark McQueen confronted him over unacceptable and unrelated control practices,” Lawrence wrote.
This included a lack of policies, procedures, and documentation, as well as non-compliance with federal regulations, similar to its local role in the U. S. Department of Housing and Urban Development’s Community Development Class Grant Program. The U. S. Department of Homeland Security, which provides federal investment to governments to expand housing. for urban communities.
Lawrence noted that city members learned of Hancock Bank’s statements on Oct. 12, 2022.
“Staff promptly notified the Panama City Police Department and bank, which led to Johnson’s arrest,” Lawrence wrote. authority. “