Woman Put on Probation After Cashing Over $66k in Forged Checks

A last-minute plea bargain abruptly ended the trial of 36-year-old Misty Michelle Smith before it even began on Monday, when at 2:45 p.m. the petite blonde confessed her guilt to seven counts of forgery and one count of theft committed from 2009-2011.

Gripping a tissue in her right hand and wiping hear teary eyes, Smith pled guilty to forging company checks from Meadows Fisher and Cleere Insurance Company when she worked there as an employee, in the cumulative amount of $66, 249.89. The theft charge, a second-degree felony, stemmed from her pocketing the cash when the checks had cleared.

“She was an assistant there at the company, and part of her duties were to pay bills and things like that, and so she was writing checks to herself,” 51st Assistant District Attorney Richard Villareal explained.

After admitting guilt in Judge Tom Gossett’s 391st District Court, the judge made clear that she had gotten a good deal and, following the DA’s recommendation, sentenced Smith to 10 years deferred adjudication in all four of her cases. Those sentences will run concurrently. In addition, Smith has been ordered to pay $66,249.89 in restitution before her probation ends.

“Ms. Smith, you’re on deferred adjudication,” Gossett said sternly. “You’re lucky, ma’am.”

The checks Smith forged were from the First National Bank of Sonora, and on the “Pay to the Order of” line, she had typed various dollar amounts in odd and even numbers. On the signature line was the cursive autograph of B.E. Cleere, which had been applied using a fraudulent stamp. Villareal said the stamped signature was one of the things that tipped investigators off that a forgery had occurred.

Cleere said that although Smith had begun forging the checks on Dec. 31, 2008, it wasn’t until 2011 that her forgeries were discovered. “It was my CPA’s secretary who discovered it,” Cleere said Monday. “[She was] using a stamp...and paying her[self] a pretty nice salary.” 

Prior to the discovery of Smith’s fraudulent activities, Cleere said he had no reason to suspect she was engaged in any criminal activity that could be harmful to himself or the company. “I had complete confidence in all of my employees,” he said.

Cleere was present in the courtroom Monday, and said he was “fine” with the outcome and the sentencing.

“As far as I’m concerned, it went by the law and that’s all we can go by,” Cleere said. “I think justice was served.”

Because Cleere is 65 years old or older, Smith’s forgery charges were third-degree rather than state jail felonies. The punishment range on a third-degree felony is 2-10 years and an optional $10,000 fine.

Theft greater than $20k but less than $100k is a third-degree felony, however in Smith’s case the charge was enhanced to a second-degree felony punishable by 2-20 years confinement and an optional $10,000 fine. Should Smith violate the terms of her probation, she could be sentenced to a max of 10 years in the penitentiary for the forgeries and 20 years for the theft.

Misty Smith now resides in Granbury. Andrew Ottaway, also of Granbury, served as her defense counsel.

The jury was dismissed in the case before being seated. Jury selection took three hours Monday morning.