OGDEN — Just after Denise Aughney was confronted about nearly $1 million in missing funds from the Weber School District Foundation, she said she began moving her assets to protect her family.
"Following my confrontation by the School Foundation, and the discovery of my activities, I became fearful of how my activities might affect persons whom I love, including my husband, children and parents ... ," Aughney wrote in an affidavit filed in 2nd District Court on Wednesday.
In addition to Aughney's affidavit, the Deseret Morning News has obtained statements from her husband, her parents and pages of check statements prepared by the foundation that the ex-secretary claims detail where the money went.
"The funds from these checks were deposited and credited against my credit card accounts," Aughney wrote. "I then used my credit card accounts to obtain cash advances and make purchases."
On Wednesday, Aughney and her husband, John, appeared in court to answer to a lawsuit filed against her by the Weber School District Foundation. The non-profit fund-raising arm of the Weber School District wanted an injunction to freeze her assets to stop any more divesting of money.
In a deal revealed in court, attorney Brad Smith said that John Aughney's accounts would be freed.
"I have no way to pay on-going bills including mortgage payment of my house, utilities, food, or general household expenses including expenses necessary for maintenance of my minor son, who is 11 years old," John Aughney wrote in an affidavit.
Denise Aughney would agree to not transfer ownership of properties, vehicles and accounts to anyone while the case remains under investigation.
"Ms. Aughney, you understand everything represented here?" Judge W. Brent West asked her.
"Yes," Aughney replied.
In court, the Aughneys were surrounded by family. Also in the courtroom was a Weber County sheriff's detective, who has been investigating the embezzlement. The Weber County attorney has said he will review the case to determine what, if any, criminal charges should be filed.
The money was first discovered missing in November. According to the civil lawsuit filed by the Weber School District Foundation, Aughney admitted to district officials that she had taken more than $900,000. Shortly afterward, she filed a pair of quit claim deeds, transferring her ownership of two homes to her husband and parents.
In court papers, Smith said neither John Aughney, nor Denise Aughney's parents knew what she was doing.
Aughney left court, refusing to speak to reporters.
Foundation attorney Bryan Benard said they continue to investigate where the money went.
"We are moving forward as fairly and as equitably and as expeditiously as we can," he said.
E-mail: bwinslow@desnews.com