Serving Gogebic, Iron and Ontonagon Counties

Gerovac takes deal in embezzlement case

By RICHARD JENKINS

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Bessemer — Former Erwin Township Clerk Prisilla Gerovac entered a no contest plea to an embezzlement charge in 32nd Circuit Court in Bessemer Tuesday as part of a plea agreement.

The agreement calls for Gerovac, 45, of East Pioneer Road, to plead no contest to the charge of embezzlement by an agent or trustee of an amount more than $1,000 and less than $20,000, a five-year felony. There is also the possibility of a fine of up to $10,000 or three times the amount embezzled, whichever is greater.

A second embezzlement charge — embezzlement by a public official of an amount more than $50 — was dropped as part of the deal.

According to information presented in court, the agreement includes a 15-day cap on jail time for the crime.

Judge Janis Burgess, who is hearing the case, said while she wasn’t bound by the jail cap, Gerovac would have the opportunity to change her plea if Burgess indicated she was going to impose a stiffer sentence.

Restitution is also part of the deal, with Gerovac having already paid $5,500, according to information presented in court, and a total restitution amount to be determined prior to sentencing.

While treated like a guilty plea in criminal court, Gerovac’s no contest plea protects her from any potential civil liability, as a plaintiff in a civil suit is unable to use it as an admission of guilt.

The case began in April 2015 when Township Supervisor Larry Grimsby discovered “discrepancies” in township finances, leading to an investigation by Michigan State Police.

According to testimony and evidence presented during a preliminary exam in November, the amount in question during the case is around $11,000.

Grimsby told the Daily Globe he was glad the process is almost over.

“I’m pleased that it appears this ordeal is coming to a conclusion,” Grimsby said. “This has been a severe hardship on the township and has created a lot of extra work to get our finances in proper order. The greatest challenge is restoring the public trust — our current board works every day to accomplish this goal for the residents and property owners of Erwin Township.”

Gerovac is scheduled to be sentenced July 5.