Jul.05, 2010

PALMYRA -- A former employee of a Fluvanna County day-care center has been arrested after being indicted on 19 counts of embezzlement and two counts of money laundering, according to a Virginia State Police spokeswoman.

Tracy Lin Shifflett was charged after a joint investigation by the Fluvanna Sheriff's Office and the state police into the finances of ABC Preschool in Palmyra, spokeswoman Corinne Geller said. Shifflett was arrested Tuesday, Geller said.

According to court documents, officials found receipts for nonbusiness expenses, including porch screening and cigarettes.

In 2007 and 2008, the business averaged cash receipts of about $3,700 each month, according to an affidavit requesting a search warrant.

In 2007, the business deposited an average of $968, and for 2008 the figure was $1,336, according to the affidavit.

Court documents reveal that police are also investigating whether there is any connection between Shifflett and financial problems at Wesley Community Child Care Center in Charlottesville, which closed this year as it was facing a tax lien.

"In a similar but separate case involving Tracy Lin Shifflett and ABC Preschool of Palmyra, Virginia, sizable cash deposits were made into her University of Virginia Community Credit Unit and BB&T bank accounts, likely from ABC Preschool funds," state police special agent accountant William W. Talbert wrote in an affidavit asking for permission to search Shifflett's bank records.

Geller said the investigation into the Wesley problems is still open and that the two investigations are being conducted independently.

At Wesley, police found nearly 40 unauthorized ATM withdrawals and business deposits that came up short when compared with receipts.

Police have been examining bank records for months in the case. Shifflett was the director of each preschool when the financial problems occurred, according to affidavits.