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P/CLOUDY Temp: 43 °F Wind: CLM at 0 mph Tuesday, April 1, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend March 22, 2003 Georgia Ann Peila Medford woman jailed for embezzlement By SARAH LEMON Mail Tribune A former employee of Internet CDS is accused of embezzling more than $200,000 from the Medford-based company. Georgia Ann Peila, 42, of Medford, was arrested last week on charges of first-degree aggravated theft and two counts of first-degree theft. She pleaded not guilty to the charges in Jackson County Circuit Court and remained in jail Friday on $25,000 bail. Peila, who supervised the Internet provider’s billing department since 1996, allegedly stole cash receipts from the company for about four years before the theft was uncovered. Among Peila’s job duties, she was responsible for taking in clients’ cash, which represented about a third of customer payments. An employee in Peila’s department reported cash was missing in July last year, investigators said. Company managers initially discovered that about $250 was unaccounted for, said Dawna Kircher, operations manager for Internet CDS. Investigators allege that Peila embezzled about $212,000 since 1999. Peila often asked her employees to post payments to clients’ accounts without handing over the corresponding cash, said Medford police Detective Terry Newell. If Peila’s employees questioned her, she became defensive or made up excuses, Newell said. Peila was a trusted employee because she helped set up the billing system shortly after the company was formed and reported an internal theft several years ago, Kircher said. "She was in a trusted position, and she abused it," said Tim Barnack, deputy district attorney for Jackson County. Peila told her supervisors that there was no way to track cash receipts on the company’s computerized billing system. The missing money became evident only after an investigation began, Kircher said. Independent audits and computer records show that money was credited to clients’ accounts, but the cash never made it to the bank, said Kircher. Peila’s assistant made many of the account entries, as did Peila herself, although it was not her responsibility, Kircher added. Peila left her job after police started investigating the theft. Kircher stressed that clients never were double-billed. Formed in 1995, Internet CDS has about 15,000 customers in Southern Oregon. "It came out of our pockets," Kircher said. A grand jury indicted Peila on the theft charges last month. However, she moved from her Medford home, and it was several weeks before police located and arrested her on March 14. Court records show that Peila was convicted of fourth-degree assault, a misdemeanor crime, in 2000. Reach reporter Sarah Lemon at 776-4487, or e-mail [email protected] Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy Website Feedback A D V E R T I S E R S