Palmertree indicted, charged with stealing restitution

Published 11:35 am Wednesday, December 3, 2014

Shelly Ashley-Palmertree was sentenced to five years in prison for embezzlement.

Shelly Ashley-Palmertree was sentenced to five years in prison for embezzlement.

Jailed former Circuit Clerk Shelly Ashley-Palmertree is facing more legal trouble as she is now accused of stealing thousands of dollars meant as restitution for crime victims.

In a secret three-count indictment, Palmertree, 44, was charged with embezzlement from her office’s restitution fund and falsifying her record books and will stand trial in April, District Attorney Ricky Smith said Tuesday as the indictment became public.

“My intention is to make sure those victims are not victims again,” Smith said.

Email newsletter signup

Sign up for The Vicksburg Post's free newsletters

Check which newsletters you would like to receive
  • Vicksburg News: Sent daily at 5 am
  • Vicksburg Sports: Sent daily at 10 am
  • Vicksburg Living: Sent on 15th of each month

Palmertree, who is represented by Marc Brand, waived being brought back to Warren County for arraignment, and Circuit Judge Isadore Patrick set trial for April 6.

The indictment was issued during the October term of the Warren County grand jury but remained secret until Palmertree was served with a copy at the Rankin County satellite prison facility where she is serving a five-year sentence for embezzlement.

Smith estimates Palmertree diverted approximately $100,000 from restitution payments to her office to her own use from January 1, 2013 until she was removed from office May 15, 2014.

“It’s a pattern that occurred over that period of time,” Smith said.

After a defendant is sentenced, any restitution they owe to a victim is paid by to the circuit clerk’s office and is supposed to be sent from the clerk’s office to the victim.

Palmertree was sentenced Sept. 29 by Special Judge Henry Lackey to five years in prison for embezzling $12,000 from the civil and criminal accounts under her care. Those accounts contain fines and fees associated with civil and criminal cases.

Smith’s office handled the criminal investigation into the restitution payments. State law allows district attorneys to independently investigate cases, and Smith’s office has two full-time investigators.

“There’s been a lot of talk that she … owes money back to the county, but I was concerned that victims of crimes who were owed money were left out,” Smith said.

About $13,000 of the restitution funds Palmertree is accused of stealing are in the process of being returned after a defendant sued Palmertree in circuit court, Smith said.

“It appears some victims were being left out, especially those who could not afford to hire a lawyer and seek their money,” Smith said.

A civil suit against Palmertree is still pending. The case involves more than $1.04 million in payments above the state’s salary cap for circuit clerks and questionable payments to her predecessor and father, Larry Ashley.

Hinds County Chancery Judge Dewayne Thomas could hear the case as soon as Jan. 6

Supervisors removed Palmertree from office in May after uncovering that she was living in Madison. The board appointed Greg Peltz as interim clerk, but Jan Hyland Daigre defeated Peltz last week in a runoff election to fill Palmertree’s unexpired term.

Daigre, who was sworn in Monday, will have to run for the office again in November.