Gravette Couple Pleads Not Guilty In Embezzlement Scheme

Codi Bates (L), Tyler Bates

BENTONVILLE (KFSM) — A Gravett couple has pleaded not guilty to theft and forgery charges stemming from missing city funds.

Codi Bates, 32, pleaded not guilty to theft of property, while her husband, Tyler Bates, 32, pleaded not guilty to second-degree forgery.

Their next hearing is Feb. 10 in Benton County Circuit Court.

Bates, the former office manager for the city of Sulphur Springs, is accused of embezzling more than $100,000 in city funds, including $75,000 in grants from the Federal Emergency Management Agency (FEMA).

Bates was hired in July 2017 and stole $101,629.49 before being fired in April, according to a probable cause affidavit.

Deputies noted she also gave herself multiple raises, despite being written up repeatedly for infractions and not being eligible for a pay increase, according to the affidavit.

Bates and her husband, Tyler, were arrested on May 22.

State auditors began reviewing the city’s finances in March and immediately found “major discrepancies,” according to the affidavit.

When the city learned there was a potential problem, it contacted law enforcement and let the sheriff’s office handle the investigation, according to City Attorney Bryan Vernetti.

Mayor Shane Weber told deputies Bates was the only person in the city that handled the city’s accounts and the sole person with access to the city’s online banking system.

Several of the checks that appeared to be written to pay the city’s bills were actually deposited into Bates’ and her husband’s personal bank account.

“Basically, (Bates) would issue herself or her husband a fraudulent check and use the mobile deposit application to put the funds into their joint checking account,” according to the affidavit.

Although each deposited check required two signatures, investigators believe Bates forged signatures from the mayor or city council members.

Bates primarily forged the checks from the city’s general and water funds.

Both she and Tyler spent the stolen money from their personal account. Investigators found several forged city checks at the Bates’ home in Gravette.

Deputies noted that Tyler Bates never worked for the city, but was paid once by Weber for a job he did as a private contractor, according to the affidavit.

Both are free on bond.

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