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Ex-Greensburg police chief faces theft, misconduct counts

GREENSBURG, Ind. (AP) - A former Greensburg police chief who investigators say has a gambling problem was arrested Tuesday after an audit found nearly $73,000 in cash missing from a police department property room.

Former Chief Stacey L. Chasteen surrendered Tuesday at the Decatur County Jail in the community about 50 miles southeast of Indianapolis, according to Indiana State Police. She faces one charge of theft and one count of official misconduct.

Chasteen, 49, was released on bond but could not be reached for comment Tuesday. A phone number listed in her name was disconnected.

Citing personal reasons, Chasteen resigned in November after three years as chief and 21 years on the force

According to a probable cause affidavit, a police department employee noticed nearly $73,000 missing from the property room a couple of weeks after Chasteen resigned. The money had been placed into evidence in September 2012 as part of an investigation into an illegal massage parlor.

An Indiana State Police audit of the property room uncovered 13 property receipts indicating that money stored in the evidence room was no longer there, including the $73,000 from the massage parlor case, court documents show.

Investigators say Chasteen's husband, Greensburg Fire Chief Scott Chasteen, told them his wife had a serious gambling problem that had caused them to file for bankruptcy in 2010. He told police his wife informed him in June 2013 that she had taken money from the police department's evidence room and need $60,000 to $70,000 to repay it.

He said the couple borrowed $57,000 from relatives and used personal funds to come up with $70,000 for his wife to replace the missing money.

Stacey Chasteen told investigators she didn't replace the money and instead gambled it away. She also acknowledged taking the money from the massage parlor case, the court documents show.

Decatur County Prosecutor Nathan Harter has said previously that the missing money could impact 16 cases.

Harter said in a statement Tuesday that his office has reached out to attorneys whose cases might be impacted but will let the courts determine whether Chasteen's case affects those outcomes.

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