U.S. News

A Township Treasurer Stole $747,000 in Tax Money Over a Decade to Build a Vacation Home

By Mike Harper · August 7, 2026

She collected property taxes from her neighbors for 40 years. For the last 11, she was stealing the money.

Marilyn Ethel Harp, 74, the former treasurer of Ionia Township, Michigan, pleaded guilty Wednesday to one count of bank fraud after admitting she diverted approximately $747,025 in public funds for her personal use over more than a decade.

Harp served as township treasurer from 1984 until 2025 — 41 years in a position that made her solely responsible for collecting property taxes from residents and depositing the money into township accounts that fund public services, including the local school system.

Federal prosecutors said she used the stolen money to build a vacation home, pay for trips, and purchase luxury items. When other officials began to suspect something was wrong, she fabricated financial records and destroyed others to cover her tracks.

“Harp’s crime is worse than that, though. The money she stole from her neighbors was intended to fund her community’s school system.” U.S. Attorney Timothy VerHey said. “For over ten years she took this money from the people in her community and spent it on a vacation home and other luxuries that were out of reach for many of her neighbors.”

The fraud spanned from 2014 to 2025. Investigators traced $647,698 to the scheme and seized it during the investigation. Harp agreed to forfeit that amount as part of her plea agreement. The remaining roughly $100,000 has not been recovered.

Ionia Township is a small community in central Michigan with a population of roughly 3,000. The property tax revenue Harp was responsible for collecting went directly to funding roads, fire protection, and — most notably — the local school district. For 11 years, money that residents paid into the system to educate their children and maintain their community was being diverted to one person’s personal accounts.

The case was investigated by the FBI and the IRS Criminal Investigation Division. Harp was charged under federal bank fraud statutes because the stolen funds were routed through federally insured financial institutions.

She is scheduled to be sentenced December 3. She faces a maximum penalty of 30 years in federal prison.

The position of township treasurer in Michigan is an elected role. Harp ran unopposed in several elections during her tenure. The township has not announced structural changes to prevent a recurrence — no dual-signature requirements, no independent audits, no separation of collection and deposit responsibilities. The system that allowed one person to control taxpayer money for 41 years without meaningful oversight is still in place.