Ithaca is located in southern Darke County, and at the time of the 2020 census had a population of 81 people.
Soon after becoming mayor, Peterson fired the village’s fiscal officer and took on those duties for himself. He continued as the fiscal officer until he was terminated on Aug. 31, 2021.
The Auditor of State said that its Special Investigations Unit began to investigate on March 30, 2022, when it was contacted by the Darke County Sheriff’s Office, who said they believed Peterson was paying himself for numerous positions and had purchased several items from a power equipment dealer that were not accounted for in the village’s inventory or approved for purchase by the village council.
According to the report, the auditor’s office investigators found those allegations were generally true.
The report found that Peterson should not have taken on the fiscal officer position, because as the mayor he would essentially be his own boss. Since he was bringing in a salary for the incompatible positions of mayor and fiscal officer, the auditor’s office said that Peterson overpaid himself a total of $17,299.99.
The audit also found issue with several reimbursements that Peterson gave to himself for a total of $2,258.69. According to the report, Peterson did not file any paperwork to support the need for the reimbursements, simply writing “village supplies” in the check memo line on most of the checks.
Outside of payroll, the auditors said that Peterson made five purchases of various equipment with Village funds for his personal use, including a sprayer, a pressure washer, a mowing deck and a large root grapple that Peterson originally claimed to be an $8,000 wing mower. Most of the items were returned to the village, the report said, though some, including the root grapple and a $1,200 72-inch blade, were never returned.
In all, the report concluded that Peterson’s purchases, between unreturned items and the depreciation on items he bought and returned, led to a loss of $12,152.78 for the village.
In all, the auditor’s office concluded that Peterson should be responsible for paying $38,845.46, including paying for the costs of the audit.
After the investigation, Peterson was indicted by a Darke County grand jury on Jan. 25, 2024 of one count of grand theft and one count of theft in office, the report said. Peterson entered into a plea agreement on Sept. 5, 2024, to plead guilty to the theft in office charge, a fourth-degree felony.
On Oct. 31, Darke County Common Pleas Judge Travis L. Fliehman ordered a stay on the charge on the conditions that Peterson complete up to five years in a substance abuse/mental health intervention program and pay restitution of $37,788.04, which he paid in full in December 2024.
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