Updated: Emmaus Couple Charged with Embezzling Nearly $1M from South Whitehall Township

Updated 5:15 p.m.

Former South Whitehall recycling coordinator and utility supervisor Nancy Tonkin and her husband, a former township police officer, conspired to embezzle $854,497 from township coffers for more than a decade, according to Lehigh County District Attorney James Martin.

At a press conference Tuesday, Martin said Tonkin, 66, and her husband, William J. Tonkin, 69, of 1124 Little Lehigh Drive South, Emmaus, used much of the money to gamble at casinos in Pennsylvania and New Jersey.

The two allegedly conspired to steal the money from the utilities accounts—water, sewer and refuse/recycling—of the South Whitehall finance department from 1999 to June 2012. 

Officials say they suspect more money was stolen but the financial records only go back to 1999.

A Lehigh County grand jury heard testimony from more than 14 witnesses before returning a presentment on April 26.  Martin approved the charges against the couple based on the presentment.

Martin said the Tonkins were involved in a sophisticated "lapping scheme" to avoid easy detection, by using residents' bill payments to cover stolen money in a cycle of "robbing Peter to pay Paul." 

Each is charged with three counts of dealing in the proceeds of unlawful activities, a first-degree felony; one count of theft by unlawful taking, theft by deception, theft by failure to make required disposition of funds and receiving stolen property, all third-degree felonies, and one count of criminal conspiracy, a first-degree felony.

Nancy Tonkin was a township employee for 30 years and served as utilities supervisor. She was suspended June 8, 2012. 

William Tonkin was a South Whitehall police officer from November 1969 to February 1996. He last worked as a security guard at Allen High School in Allentown.

Nancy Tonkin was arraigned Tuesday morning through Central Booking. Her husband is expected to turn himself into authorities with his lawyer on Wednesday.

As utilities supervisor, Nancy Tonkin had "exclusive control" over the processing of cash payments that township residents made for water, sewer and refuse/recycling bills, the grand jury report said. Authorities also were able to corroborate Tonkin's involvement by reviewing the joint bank accounts she had with her husband at three different banks in Lehigh County over the past seven years. 

An analysis of bank records showed $247,406 in deposits had been made in those accounts from August 2005 to June 2012, the grand jury report said. The Tonkins withdrew cash from their joint bank accounts almost exclusively from ATM kiosks at nearby casinos, it said.

From January 2009 to June 2012, 89 cash withdrawals amounting to $20,205 had been made from casino accounts, the report said.

Authorities also reviewed casino slot use. Nancy Tonkin's losses at three casinos in Pennsylvania and five casinos in New Jersey amounted to $94,785, and her husband's amounted to $21,452, the report said.

According to county officials, township Manager Jon Hammer and South Whitehall Police Chief Thomas Toth contacted the district attorney's office in July 2012 about the suspected theft of a large amount of money from the utilities accounts of the township’s Finance Department. That came two months after the township asked a certified public accountant to do a forensic accounting investigation.

Martin thanked Hammer, who became township manager in August 2010, and Toth for their cooperation in the probe.

The grand jury was critical of the township's former financial supervisor Linda Perry, saying Nancy Tonkin was able to carry out her scheme for so long because of the Perry's "obvious incompetence." Perry took an early retirement last year. 

Nancy Tonkin abruptly left as a township employee last year as the township was offering the early retirements to its senior employees. At the time, however, township officials would not say whether Tonkin had retired, resigned or been put on leave.

After Perry retired, her successor, Lenore Horos, began to suspect Nancy Tonkin's alleged scheme and alerted Hammer, according to the report. Hammer in turn brought in forensic fraud investigator Anthony Buczek, who unraveled how Nancy Tonkin was able to steal the money, the grand jury report said. 

Tonkin was removed from her job and asked to explain why money was missing from a batch of cash payments in water, sewer and refuse/recycling. The next day, after giving "an incredible response," she was suspended by Hammer, according to the report. 

Hammer said Tuesday that the township instituted new safeguards in an effort to prevent future fraud. He said the township would seek to recoup the money in a civil lawsuit against the Tonkins and through the township's insurance.

See More on Patch:

How the Alleged Embezzlement was Uncovered

New Safeguards Installed Since Alleged Embezzlement

Who to Contact With Questions About Alleged Embezzlement

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