Hawthorne Treasurer Takes Leave After Federal Indictment for Alleged Embezzlement

Hawthorne City Treasurer Marie Poindexter-Hornback has taken a leave of absence after federal grand jury indictment over alleged embezzlement at her previous employer, Fidelity. The city confirmed the move on Thursday to NBC4, citing the seriousness of the charges that stem from her work as an accountant handling accounts payable.

Indictment Details

The indictment, filed in September, accuses Poindexter-Hornback of approving fraudulent payments and using company funds for personal expenses. It alleges that between June 2023 and July 2024 she used Fidelity’s Amazon account to purchase items for “non‑Fidelity‑related” purposes, diverting money that should have stayed within the organization.

City Statement

\”The City is aware of recently announced federal criminal charges against elected City Treasurer Marie Poindexter. While the Treasurer reports only to City voters, the City has agreed with the Treasurer that she will take a leave of absence from her duties until such proceedings have concluded. The City’s Director of Finance will perform the Treasurer’s duties during her absence. Beyond this, the City will have no further comment out of respect for the court process,\” wrote the City of Hawthorne in a statement to NBC4.

Allegations of Fraudulent Checks

According to the indictment, Poindexter-Hornback also altered checks issued to vendors. The defendant is said to have changed the names of the payees to two individuals, \”R.J.\” and \”D.M.\”, neither of which were Fidelity vendors. These changes allowed the former treasurer to redirect payments that should have gone to legitimate suppliers.

Estimated Losses

The alleged scheme, spanning more than a year, is estimated to have caused Fidelity losses of over $200,000. The indictment claims that the fraudulent transactions were concealed through manipulation of the company’s accounting records and approvals.

Poindexter-Hornback’s Background

Poindexter-Hornback was elected Hawthorne treasurer in 2022, becoming the city’s first Black woman to hold the position. Her tenure has been marked by initiatives to improve transparency and fiscal oversight.

City’s Decision to Place Treasurer on Leave

The city’s decision to place the treasurer on leave underscores the seriousness of the allegations and the need for an impartial investigation. By appointing the Director of Finance to oversee treasurer duties, Hawthorne seeks to maintain continuity in its financial operations while the legal process unfolds.

Importance of Internal Controls

The case highlights the importance of robust internal controls in public finance. It also brings attention to the potential for misuse of corporate resources by individuals in positions of trust.

Focus on Recent Period

The indictment’s focus on the period from June 2023 to July 2024 suggests that the alleged misconduct was recent and ongoing during Poindexter-Hornback’s tenure at Fidelity. The federal grand jury’s involvement indicates that the case may involve multiple jurisdictions and complex financial arrangements.

No Further Comment

Poindexter-Hornback’s leave of absence does not preclude her from facing criminal charges. The city has expressed no further comment beyond the statement, respecting the court process and allowing the legal system to proceed without interference.

Director of Finance’s Role

The city’s Director of Finance has been tasked with performing all treasurer responsibilities during the treasurer’s absence. This includes managing city funds, overseeing payroll, and ensuring compliance with state and federal regulations.

Moving Forward

As the case moves forward, residents of Hawthorne and stakeholders in the city’s finances will watch closely. The outcome will likely influence future oversight measures and the city’s approach to leadership accountability.

Additional Context

The indictment, filed in September, was the result of an internal audit at Fidelity that uncovered irregularities in the accounts payable system. The audit team noted that several large payments had been authorized without proper documentation, prompting a deeper investigation.

Fidelity’s Amazon account, typically used for office supplies and vendor services, was reportedly accessed by Poindexter-Hornback for purchases that were not related to Fidelity operations. The items ranged from personal electronics to luxury apparel, according to the indictment.

The alteration of vendor checks involved changing the payee names to \”R.J.\” and \”D.M.\”—identifiers that do not match any known Fidelity suppliers. The checks were then processed through the company’s payroll system, allowing the funds to be transferred to private accounts.

The estimated loss of over $200,000 represents a significant percentage of Fidelity’s annual accounts payable budget. The company has yet to disclose the full impact on its financial statements, but the indictment indicates a systemic failure in oversight.

Poindexter-Hornback’s election in 2022 was widely covered in local media, highlighting her commitment to fiscal responsibility and community engagement. She had previously served on the city’s finance committee before being elected treasurer.

The city’s decision to place her on leave was communicated to the public through a statement to NBC4, emphasizing the need to uphold public trust while legal proceedings continue. The statement also noted that the city would not interfere with the judicial process.

The Director of Finance, who assumed treasurer duties, is responsible for ensuring that all financial transactions remain compliant with state law and city ordinances. This role is critical in maintaining the city’s budgetary stability during the treasurer’s absence.

The federal grand jury’s involvement signals that the case may involve interstate financial activities, given Fidelity’s national operations. The indictment’s focus on a one-year period suggests a sustained pattern of misconduct.

Residents of Hawthorne are monitoring the situation closely, as the treasurer’s role directly affects city services and public projects. The city council has expressed concern about maintaining fiscal oversight amid the controversy.

Legal experts note that federal criminal charges can lead to both civil penalties and potential prison time, depending on the severity of the offenses. The indictment outlines the alleged violations but does not yet determine sentencing.

The outcome of this case could prompt reforms in how cities vet and oversee elected officials with financial responsibilities. It may also influence future policies regarding internal controls within public institutions.

The city’s public record of the treasurer’s leave and the statement to NBC4 will remain accessible, ensuring transparency. Citizens can review the documentation to understand the city’s approach to the situation.

Key Takeaways

• The Hawthorne treasurer has taken a leave of absence following a federal indictment for alleged embezzlement.
• The indictment details fraudulent payments, altered checks, and losses exceeding $200,000 at Fidelity.
• The city has appointed its Director of Finance to maintain fiscal oversight during the legal process.

The case remains under active investigation, and the city’s leadership is committed to upholding transparency while the legal process unfolds. Residents and stakeholders will continue to follow developments closely as the outcome may shape future governance practices.