Putnam County

Crescent City commissioner arrested, accused of mishandling disabled man’s funds

PUTNAM COUNTY, Fla. — A Crescent City commissioner is facing charges after being accused of mishandling a disabled man’s funds.

Kathleen Berg, 57, was arrested and charged with exploitation of $50,000 or more from an elderly person or disabled adult, according to a release from the Putnam County Sheriff’s Office.

Berg was supposed to handle the man’s funds after his mother’s death in 2016. She was responsible for the victim’s Social Security benefits, as well as a life insurance payment of more than $170,000 that the victim’s mother established for him, the Sheriff’s Office said.

Detectives began investigating the case in October. They found Berg took the victim to a Crescent City bank to deposit the life insurance check into an unknown account. Berg had control over the victim’s financial affairs until April 2019 and only paid the victim’s minimum bills and did not provide funding for his living expenses.

The bank account was closed 11 months after it was opened and during that time, Berg funded personal trips, shopping sprees, cash withdrawals, purchased a home and made renovations to the home, the Sheriff’s Office said. Berg did not make any deposits to replace the funds she withdrew, the Sheriff’s Office said.

Berg depleted the victim’s account of his Social Security benefits, the Sheriff’s Office said. Both accounts listed Berg on the account and the victim did not have access to checks, deposit slips or bankcards, the Sheriff’s Office said.

Between March and April 2019, detectives found the victim was feeding himself on approximately $15 a month in food stamps assistance. The victim told detectives that Berg never checked on him while she was responsible for his financial affairs and well-being to ensure his living conditions were acceptable.

In April 2019, another family member took control of the victim’s finances and well-being and discovered the missing money. The family member and victim attempted to contact Berg several times and resolve the issue of the missing money prior to contacting the Sheriff’s Office.

“It is reprehensible that a person could take advantage of another person dependent on them to live. It is even worse when the person entrusted with care is a public figure in our community,” Sheriff H.D. “Gator” DeLoach said in a news release.

A warrant was issued for Berg’s arrest. She turned herself into the Putnam County Jail and was released on $20,000 bail.