Gadsden Elementary School District former payroll specialist indicted on fraud charges

Criminal Indictment - Theft, Misuse of Public Monies, Fraudulent Schemes, Computer Tampering

SAN LUIS, Ariz. (KYMA, KECY) - Gadsden Elementary School District's (GESD) former payroll specialist Carolina Carrazco has recently been indicted on seven felony counts related to theft, misuse of public monies, fraudulent schemes and computer tampering, according to the Arizona Auditor General (AAG).

The AAG released a press release showing the District first hired Carrazco back in 1998 as a language tester. She was then promoted to payroll specialist in 2005.

AAG's report explains this promotion allowed Carrazco to alter employee payroll deductions, including those deductions related to her own health insurance premiums. It wasn't a problem until August 2019, when district administration learned she used her payroll system login credentials to illegally stop payroll deductions, while still receiving the benefits herself.

GESD's investigation revealed this illegal behavior had been happening since October 2017. District officials reported their allegations to the AAG, which submitted their findings to the Arizona Attorney General’s Office (AAGO).

The AAGO just presented evidence to the State Grand Jury on Monday, August 9.

According to a report filed through the AAG, "Carrazco may have altered the data in the District’s payroll system 4 times to either stop her payroll deductions of health insurance premiums totaling $7,791 while still maintaining District-provided health insurance, or to conceal her actions."

She also allegedly prevented $20,439 related to employer and employee health insurance premiums from being paid to a district trust fund.

This is an ongoing story. Please stay with KYMA.com for continuing coverage.