The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-07-09
Charged with Embezzle-
ment of Funds While in
States Employ.
DENIES THE CHARGE
Has Letter From Bank Show
ing that Cashiers Check
Was Made Out Here.

John S. Scholey, constable, and for
mer deputy state treasury agent, was
arrested here Monday afternoon on a
warrant filed against him at Racine,
charging embezzlement. State treas
ury Agent. c., B. Ballard of Madison
filed the charges in Racine Monday
and Monday evening Scholey was turn
ed over to Detective Yanney of Racine
by the Kenosha police department.
The arraignment was held this
morning in the municipal court at Ra-
cine. Scholey pleaded not guilty, and
the case has been continued to Tues
day, July IA, at 9 a. m.
Ab0rt State Funds.
Mr.. Ballard charges that John Scho-
ley while deputy treasury agent, mis-
appropriated funds collected in state
licenses in Racine. The offense, it is
alleged, was committed in April; Scho-
ley has not been in the states employ
since May.
The state treasury agent said that
the former deputy has refused to turn
over his books or give an accounting
on the money collected to the state
department.
Meanwhile Mr.. Scholey maintains
that the state department has not been
fair in bringing the charges without
making an Investigation, because the
facts in the case will clear him, he in
sists.
Mailed Cashiers Check.
The dispEte concerns the amount of
$75 collected by Scholey as the license
of Mochus Brothers in Racine during
the month of April.
"On April g." said Scholey this
morning, II mailed to Mr.. Ballard, two
checks. One was for the sum Of $45;
the other was a cashiers check drawn
upon the United States National bank,
for $75. Mr.. Ballard says that the
check for. $45 was received, and that
the other was not received.
"The money for this $75 check is
still in the bank here upon which it
was drawn, showing that the check
has not been cashed either by the
state department or anyone else.
have letter from the cashier of the
bank stating that this is the fact.
"Just what happened do not know.
The check might have gotten lost or
mislaid in Madison, or in some way
gotten into the waste paper basket.
"Mr. Ballard wrote me about this
matter, and l wrote back, telling him
that had mailed the two checks from
here, and asking him to make thor
ough search, and then if he did not
find the $75 check to write me again.
But he did not. / did not hear any
thing further until the warrant for
embezzlement was shown me"
Shows Banks Letter.
Scholey declared that with the proof
that he had in his possession that he
had sent the check to the state de-
partment, he was confident that he
would be cleared of the charge, when
the hearing is held next week.
The letter received from the bank
this morning substantiating Scholey's
statement, reads as follows:
"This is to certify that John Scholey
of this city on April rs, 1925, pur-
chased draft here for $75, made pay
able to your order and this draft re-
mains unpaid on our books and has
evidently been lost in the mails. We
trust this explanation will be salts
factory. We are going to issue du-
plicate draft in few days. Very
truly yours, United States National
Bank, by H. M. Petersen, assistant
cashier. July 7, 1926"