NL woman accused of fraud follows with suit against partner
NORTH LIBERTY– A North Liberty woman was arrested March 30 and charged with fraud after her business partner accused her of misusing company funds to cover personal expenses.
She followed the arrest by filing a suit against her accuser.
Melissa M. Frost, 32, of North Liberty, was charged with fraudulent practices in the first degree based on allegations by her C&M Tax Services business partner that Frost was “manipulating the financial records of the business to show major differences in equity between owners,” the complaint reads. In October 2011, the unnamed co-owner was locked out of the financial software for the business and was denied access by Frost, he stated. Credit cards found under the business name listed Frost as the only authorized user, who used them to cover over $22,000 in credit card bills, according to the report. The report, filed by the Iowa City Police Department, also states that Frost had manipulated the business accounting records, causing inaccurate tax returns to be filed with the Federal and state governments.
According to published reports, documents filed with Johnson County courts Monday, April 9, show Frost is taking her business partner to court over the accusations.
Frost filed a suit against Charles P. Wolfe, accusing Wolfe of “refusing to address matters of company management,” making false statements and giving misleading information to police in order to cover up his own wrongful conduct. Charles Wolfe’s wife, Tracy Wolfe, is also named in the suit.
Wolfe has not been charged with any crime as of the publication date of this newspaper.
In her criminal case, Frost is scheduled for a preliminary hearing April 26.
Fraudulent practice is a Class C felony, punishable by up to 10 years imprisonment and a potential fine of $1,000 to $10,000.