A former Town of Taylorsville municipal court clerk and utility department clerk was arrested by the Smith County Sheriff’s Office Friday.

Michelle Sharpley, 34, was employed with Taylorsville from March 2004 until April 2008. She was indicted on one count of embezzlement following an investigation into missing funds from the Town of Taylorsville’s utility department.

State Auditor Stacey Pickering said Sharpley allegedly embezzled $6,041.63 from the utility department during a nine month period. Pickering also said investigation cost of $3,226.39 and interest of $411.14 takes the total amount of money related to the case to $9,679.16.

“This is a classic example of an audit leading us to embezzlement,” said Pickering. “The missing funds were identified during test work leading up to the audit for year ended September 30, 2007 which was performed by a contracted CPA firm. Our investigators were able to go in and determine the total funds embezzled and bring this case to a close.”

Sharpley was released on $5,000 bond and is awaiting trial.