A former Spencer city employee will spend 30 days in jail and owes the city more than $100,000 after admitting to stealing public money.
Fifty-three-year-old Lavonne Marie Bell of Spencer was sentenced Tuesday in Clay County District Court after pleading guilty to first-degree theft and being convicted of credit card fraud.
Bell received a suspended 10-year prison sentence on the theft conviction and was ordered to complete up to three years of probation and financial counseling.
She was also sentenced to 365 days in the Clay County Jail on the credit card fraud conviction, with all but 30 days suspended. Her 30-day jail term is scheduled to begin Monday, Oct. 5, and work release is permitted under the jail’s rules.
Bell was ordered to pay $106,098.13 in restitution to the City of Spencer.
The case stems from a special investigation by the Iowa Auditor of State’s Office that was released in February.
Auditors found Bell stole $46,098.13 from the city between Jan. 1, 2018, and June 30, 2024, while working as a finance assistant.
The investigation found $38,767.56 in landfill fees that had been collected but were never deposited into the city’s bank account.
Auditors also identified more than $7,000 in improper disbursements, including unauthorized payroll, excess vacation and compensatory time and personal credit card purchases.
Bell was fired in June 2024 after city officials discovered discrepancies involving landfill and dumpster-rental revenue, payroll and credit card transactions.
The audit found weaknesses in Spencer’s internal financial controls that allowed the problems to occur, including a lack of segregation of duties and insufficient independent review of transactions.
Bell later turned herself in to the Clay County Jail after a warrant was issued in February and was charged with first-degree theft.
She pleaded guilty to the theft charge Monday, Sept. 28, one day before sentencing, as part of a partial plea agreement. The state recommended a suspended prison sentence and a 30-day jail term on the credit card fraud charge. Both sides agreed to the restitution amount.
The court also considered impact statements from 10 victims. Seven of those victims addressed the court in person.
Sioux County Attorney Thomas Kunstle was appointed special prosecutor and handled the case for the state because of a conflict of interest involving the Clay County Attorney’s Office.
The City of Spencer has previously said it implemented additional financial safeguards following the state audit, including stronger separation of financial duties and additional oversight of city revenues and expenditures.
