WEBSTER CITY — Leah Mulholland, the former Webster City Chamber of Commerce administrative assistant who was on probation after pleading guilty to stealing from that organization, has been arrested on drug charges.
She was arrested Friday by Webster City police, according to the Webster City Police Department.
The 42-year-old was charged March 30 with possession of a controlled substance first count, and possession of a controlled substance — marijuana — first count, according to Iowa Courts Online. Both are serious misdemeanors.
As a convicted felon, a violation of her probation could mean she would have to serve her original prison sentence.
She has been released on bond. She is scheduled to be arraigned April 20 on the drug charges at the Hamilton County courthouse.
In January, 2021, the former Chamber employee was given a 10-year suspended prison sentence, five years probation and a $1,000 fine which was also suspended, on a charge of first-degree theft.
She entered a guilty plea on Dec. 4, 2020 on the theft charge.
Three other charges — ongoing criminal conduct — influence enterprise, forgery and unauthorized use of credit cards over $1,500 and under $10,000 — were dismissed by the court.
She was arrested in February 2020 following a lengthy investigation related to more than $239,586.23 in improper disbursements from the Webster City Chamber of Commerce.
On June 25, 2018, the Webster City Police Department requested the assistance of the Division of Criminal Investigations on a financial investigation involving the Webster City Chamber of Commerce and the former administrative assistant, Mulholland. The office of the Auditor of State conducted an audit for the period of Oct. 1, 2013 through June 30, 2018. The audit report was released July 3, 2019. The audit found 367 checks issued to Mulholland totaling $236,313.03. Of those checks, 139 were payroll checks; four were bonuses and two were reimbursements. There were 220 unauthorized checks ranging from $20 to $2,000. There was also $23,602.83 of unsupported disbursements, according to the auditor’s report.
Auditors also found 846 debit card transactions with only 107 that were properly supported by chamber records.