London, Ky. -Two former Johnson County School employees were sentenced late yesterday afternoon by United States District Court Judge Gregory F. Van Tatenhove for misapplying $626,771.40.

Peggy L. Vanhoose, 58, of Tutor Key, Ky. received 63 months imprisonment and was ordered to pay $465,384.12 in restitution, while Shelby J. Coleman, 48, of Stambaugh, Ky. was sentenced to a 27 month term and ordered to pay $161,387.28.

In August 2007, both defendants were found guilty in separate jury trials of the charges. VanHoose was the treasurer/finance officer for the Johnson County School District and Coleman served as an account clerk for the district. The evidence at trial established that for more than a year, VanHoose knowingly issued and cashed numerous payroll checks for her son Mike VanHoose who was not an active working employee for the Johnson County School District and then converted the checks to her own use. The defendants were also convicted of giving themselves unauthorized substantial pay raises from 1996 - 2005. VanHoose was also convicted at trial of giving herself extra and unearned sick day credits, without authority, to be cashed upon retirement.

Under federal law, VanHoose and Coleman must serve 85 percent of their prison sentences, and upon release will be under the supervision of the United States Probation Office for three years for each defendant.

James A. Zerhusen, Acting United States Attorney for the Eastern District of Kentucky, and Larry R. Willis, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), jointly made the announcement today after the sentencing.

The investigation was conducted by the FBI. The United States was represented by Assistant United States Attorney Kenneth R. Taylor and Special Assistant United States Attorney Anthony Skeans.

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