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Audrey Spencer, 68, of Otter lake, has been arraigned on charges of embezzlement by an agent or trustee, amounts more than $1,000 and under $4,000.

"If she's convicted, it's a felony," said Lapeer County Assistant Prosecutor Thomas Sparrow. "It's punishable by up to five years in prison, and or a $10,000 fine."

A scheduled Friday pre-preliminary District Court conference was adjourned until Feb. 1 for purposes of discovery. Spencer was assigned a court appointed attorney, but recently retained Lapeer based lawyer Mike Sharkey. Sharkey was out of the office on another matter and couldn't be reached for comment.

Spencer was a long-time member of the Otter Lake church, which first organized in the community in 1883. She was a treasurer for one of its groups, said Sparrow.

Church officials contacted the Lapeer County Sheriff's Department in August when they discovered missing money. The bank and Spencer's records differed by about $2,500 at first. Lapeer County Sheriff's D/Sgt Joe Nesbit questioned Spencer in September. She said she'd mistakenly deposited money in the wrong account and would return it.

Nesbit left messages on Spencer's phone asking if the $2,869 balance could be accounted for. She didn't return messages and Nesbit requested an arrest warrant.

St. John the Baptist Episcopal Church officials said they were very upset over the situation and didn't wish to comment.

Spencer, who is an Otter Lake Village council member, has not attended recent municipal meetings which are held the first Monday of each month.

"I really don't know too much about it," said Otter Lake Village Clerk Joan Skias of the charges. "She hasn't attended meetings in about three to four months. In December, she said she was having health problems. In January, I didn't hear from her at all."

Susan Younger may be reached at (810) 664-0811, Ext. 8122 or susan.younger@lapeergroup.com