Nacogdoches district clerk resigns after arrest

Phillips charged with stealing more than $15,000, admits 'wrongdoing'

NACOGDOCHES — After more than 16 years in public service, Donna Phillips resigned her elected post as district clerk following her arrest on a charge of theft by a public servant Thursday morning.

Phillips, who is accused of stealing more than $15,000 in 2007 from the child support account she oversees, worked in the district clerk office for 11 years before being elected to the official position in 2003.

She was arrested Thursday morning by officers with the Federal Bureau of Investigation and Texas Rangers at her home. She was then arraigned by Precinct 2 Justice of the Peace Dorothy Tigner-Thompson, who set her bond at $8,500. Phillips was immediately released after bonding out of jail.

At a press conference held in the commissioners courtroom in the Nacogdoches County Courthouse, District Attorney Stephanie Stephens said the investigation into the missing money began after County Auditor Keith Barber and his staff discovered some "irregularities" in the child support account in Phillips' office.

"When their questions could not be answered satisfactorily, they brought these matters to the attention of Nacogdoches County Attorney Jeff Davis and myself," Stephens said. "At my request, an investigation was begun by the Texas Rangers with the assistance of the Federal Bureau of Investigation."

Without Phillips' knowledge, the investigation found that child support payments made in cash to the office were never deposited into the official account, where the payments are then filtered to the payee according to Phillips' arrest affidavit. Instead, money from the general and trust accounts maintained in the district clerk's office showed that funds had been moved from those accounts into the child support account "to cover the shortages," Stephens said.

"The audit conducted by Mr. Barber's office showed that during 2007 $15,758.16 was taken," Stephens said.

"I feel the need to stress that no parent went without child support funds because of this incident," she added.

The arrest affidavit goes on to describe that "on more than one occasion, a check was written on the general account and deposited into the child support account; however the notation on the corresponding deposit slip indicates that the check was from an individual who owed child support. A review of those checks shows that they have been marked with a name and a cause number, but that name and cause number do not correspond to any known child support payer who has paid child support through the Nacogdoches County District Clerk's office during 2007."

The handwriting on the checks and deposit slips appear to be the same as Phillips' handwriting, according to the affidavit.

Based on the evidence in the case and what Phillips told authorities Thursday morning, Stephens said they do not believe anyone else in the office was a part of the crime.

After her arrest, Phillips sent a handwritten note to County Judge Joe English resigning from her position and admitting to "wrongdoing."

"I am very sorry for my wrongdoing, and regret that I have not served to the best of my ability for the citizens and employees of the county," she wrote in the letter. "Forgive my mistakes, and thank you for your kindness to me during the years."

There was no immediate answer for Phillips' reason for taking the money, Stephens commented. According to the latest Nacogdoches County budget, Phillips' annual salary was $42,732.

It will now be the decision of both district judges, Campbell Cox and Ed Klein, to appoint a district clerk who will fill the position until the general election in November, when a nominee from the chairmen of local political parties can be on the ballot.

Currently, the district clerk's office is conducting business in a break room at the courthouse, while additional audits are being performed in the office.

"The investigation is not over; I think it's safe to say that there is a little more work to be done and some loose ends that need to be tied up," Stephens said acknowledging that the $15,000 in missing money was from only one year. "They (the auditors) will keep going back until they find where it started."

Special attention was made to the auditor's office who in October last year was granted funding for an additional position to conduct more frequent and comprehensive audits of county funds.

English said that the commissioners court also funded new positions in both the district attorney and county attorney offices at the same time, and since reducing the jail population and now finding gaps in money with the auditor's staff, "the county has gotten its money's worth," he said.

"This is an extremely sad day here at the courthouse," Stephens said to a room packed with many elected officials and county staff. "Mrs. Phillips has been a co-worker, as well as a friend to most of us. However, no one is above the law, and I anticipate this case will be presented to a grand jury in a short time."

The charge of theft by a public servant is a third degree felony and is punishable by two to 10 years in prison and an optional fine not to exceed $10,000.

Attempts to contact Phillips were not successful.

Phillips is no stranger to controversy. In July of 2002, before being elected as district clerk, Phillips was reprimanded for distributing fliers inviting some county employees to a private party where sexually oriented items were sold.

The fliers were printed on a courthouse copy machine, but after the district attorney's office looked into the allegations of misuse of government property, it was deemed insignificant, costing the county only 17 cents.