Former state employee pleads not guilty to theft charges

SPRINGFIELD -- A former employee of the state treasurer's office accused of embezzling $750,000 in taxpayer funds has pleaded not guilty.

Debra Kay Kirby entered her plea Tuesday. She faces federal wire fraud and money laundering charges.

Prosecutors are seeking forfeiture of about $263,000 from Kirby. That's the amount they claim she used for her own gain.

The 54-year-old Taylorville resident worked for the state treasurer from 1973 until she retired in May 2006.

Prosecutors say she allegedly created paperwork showing the Revenue Department requested return of an overpayment of $750,000. Instead, she allegedly transferred the money to her account.

Kirby remains free on bond.

Her trial's scheduled for July 1st.