Last week, City Controller Yvonne Hoffmaster, while reviewing records, discovered that the City’s vendor, who handles the City’s prescription drug reimbursement for the City, had not posted the scheduled December deposit of approximately $175,000 into the City’s bank account.
Taking immediate action, Controller Hoffmaster contacted the vendor to inquire as to the status of the deposit, only to discover that the vendor had processed fraudulent documents submitted to the vendor electronically by an unknown individual, who had forged Controller Hoffmaster’s signature and changed the electronic deposit intended for Michigan City to a different bank account in another state.
City Controller Hoffmaster immediately reported the incident to the Michigan City Police Department (MCPD) and the Indiana State Board of Accounts. Investigation into this matter by MCPD is ongoing and Michigan City is working with the vendor to restore the funds to the City’s account.
Mayor Parry wants the public to know this theft was committed by a third party against the City’s insurance company, not Michigan City. No responsibility for this incident rests with the City of Michigan City or its employees.