Fremont County clerk accused of embezzling taxpayer funds
Many Fremont County taxpayers are angry, frustrated and disappointed about the trouble their clerk and recorder is in.
Katie Barr, 37, who has held the office since 2010, surrendered to authorities Tuesday and was freed on bond Wednesday.
Barr is accused of using county funds to illegally write checks to cover several accounts — including an account at her husband’s auto business — through a complicated scheme known as check-kiting.
County Commissioner Tim Payne, who also has 10 years of experience in the banking industry, explains how the scheme works.
“If you have, say, eight accounts and you have no funds in one account but you write a check on that, which is a hot check, but then you write a check from another account to cover that one… and you keep doing it over and over again, it’s just a vicious circle,” he said.
According to the arrest document, Barr wrote 254 checks totaling $231,000 during a six-year period.
“But it’s important to note the county isn’t missing any money,” Payne said. “She replaced it all eventually. But what she did, and how she did it, is illegal and improper for an elected county official.”
During Barr’s initial court appearance Wednesday, Judge Norman Cooling allowed her to post bond on her own recognizance, risking a payment of $50,000 if she fails to appear at her next hearing.
A public defender representing Barr said she poses no flight risk because of her standing in the community and noted that she turned herself in to authorities.
What’s unclear is whether Barr will return to her job while her case continues; state law allows an elected official to be fired only if convicted of a crime.
With that in mind, Cooling banned Barr from writing checks for cash while at work, and from discussing the case with her employees.
“If you do, you risk more harassment and intimidation charges,” he said, alluding to the arrest document in which employees said Barr threatened to fire them if they didn’t keep quiet about the situation.
Barr faces charges of fraud by check, embezzlement of public property harassment and intimidation of a witness.
Cooling wanted to schedule another hearing for March 28, but prosecutors said they need more time to prepare because the FBI continues to investigate the case and present more evidence.
March 28 will now be solely a bond status update and the next hearing date will be scheduled then.
The investigation of Barr’s conduct began six months ago when a local news reporter filed an open records request for financial records in the Clerk and Recorder’s Office.
After discrepancies were found while processing that request, Brenda Jackson, the county attorney, asked a Canon City police detective — as a neutral party — to start a criminal investigation.
Many taxpayers told KRDO NewsChannel 13 that they’ve lost trust in Barr and hope she’ll resign.
Payne implied that Jackson and county commissioners could recommend to Barr that she resign.
“But it’s her decision,” he said.
