OKLAHOMA CITY – A special audit of eight years worth of books for Marble City Elementary School is complete and found nearly $1 million in questionable deposits.

District Attorney Jerry Moore requested the audit after learning Superintendent Larry Dewayne Couch, 55, had admitted taking more than $100,000 to buy some land. Couch, represented by Sallisaw attorney Fourth Scoufos, is charged with embezzlement of public money in Sequoyah County District Court. Court records show he is awaiting a preliminary hearing on that charge.

The audit document states an outside bank account, Organization of Rural Elementary Schools, was used in the hiding of deposits and payment of school funds. Deposits of $948,202.35 into the account raised suspicion with the auditors.

Moore’s investigators and an employee of the state auditor’s office served a search warrant on the school for records pertaining to the investigation of the $100,000 land deal. Sequoyah County Treasurer Trica Yates went to Moore after Couch indicated he didn’t want School Board Member Ramon Bolin to have the records for the purchase paid for with money from the school’s building fund.

The auditor’s office credits Yates and Bolin with bringing the matter to Moore’s attention and starting the process that resulted in the 50-page audit.

Couch allegedly admitted misusing the funds to investigators when they arrived at the school with the search warrant. He also told them he planned to repay the money and would resign his position. Couch allegedly altered the records to keep the independent author from learning about the transaction.

The audit report shows checks were issued to vendors that don’t exist, to vendors for more than the amount owed and to vendors who never received the payment. In all cases the checks were found to have been put in an outside bank account.

State auditors found 16 times where a check was issued to a specific vendor, deposited into an Organization of Rural Elementary Schools account and then a check for a smaller total was issued from ORES to the entity listed on the school check.

Auditors revealed payments of $641,170.86 were paid on personal credit cards for Couch and Couch and his wife. More than 130 checks had a forged signature of the former ORES president. Couch also allegedly received benefits that weren’t part of his contract such as the purchase and use of vehicles totaling $161,157.40, payments of $11,400 toward a retirement plan and other fringe benefits and $2,804.59 toward a cell phone bill.

The audit also shows the school paid for Couch’s wife to go to Arizona with him to attend a school conference and also cites several open meetings violations and a lack of internal controls.

The special report also states board members Mary Cooksey and Tim Farris may be ineligible to serve as school board members citing a conviction in Cherokee Nation tribal court for Cooksey and alleging Farris lives in Heavener, 60 miles south of Marble City.

Marble City is located north of Sallisaw in Sequoyah County. The school has 162 students in grades Pre-K through 8.

A revocation of Couch’s administrator and teaching licenses are on appeal in Sequoyah County District Court. A state board voted unanimously to revoke the licenses.

Acting State Auditor Michelle Day said the items found during the course of the audit is startling. Moore commended the time and effort by state auditors. He said he is working with federal agencies to learn what other charges should be filed in this matter.