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franklin county times

Longtime Peavey's employee indicted for embezzlement

By By Marianne Todd/The Meridian Star
Aug. 30, 2001
A Lauderdale County woman is free on $50,000 bond after being indicted by a July grand jury for allegedly embezzling nearly $170,000 from Peavey Electronics.
Lauderdale County deputies served Cynthia K. McClelland, 41, of 6023 Fisher Road, with the indictment Wednesday. She was taken to the county jail about 7:30 a.m., and posted bond four hours later.
The indictment alleges that McClelland charged personal items totaling $168,934 on corporate credit cards between Jan. 1, 1998, and Sept. 30, 2000.
Peavey Electronics founder and president Hartley Peavey said an internal investigation began in 2000 after the company's financial officer noticed improper transactions. After researching 32 months of financial records and 1,600 separate transactions, Peavey halted the investigation and notified the company's attorneys.
Peavey said he was forced to terminate McClelland's supervisor, an employee of 27 years, for approving McClelland's purchases.
McClelland, a 20-year employee, worked as the head of Peavey's travel department.
Peavey said financial officers became suspicious when they discovered unusual travel expenses, including theater tickets and leather corsets from Victoria's Secret.
A trial date has not yet been set.
Marianne Todd is a staff writer for the Meridian Star. Call her at 693-1551, ext. 3236, or e-mail her at mtodd@themeridianstar.com.