Ex-principal arrested on theft charges

Tuesday, Aug. 3, 2004 | 11:18 a.m.

The former principal of Moapa Valley High School was arrested Thursday for allegedly embezzling more than $10,000 in school funds over the course of two years, a Clark County School District Police spokesman said Monday.

Daniel Reese, who is now retired, was taken into custody at his home on a warrant for three counts of felony theft, Officer Darnell Couthen, district police spokesman, said.

Police began investigating Reese in late 2003, Couthen said. The alleged thefts took place between 2001 and 2003.

George Ann Rice, associate superintendent of human resources for the district, said this morning she was "very concerned" by the news of Reese's arrest.

"We expect a principal will be aware of, and follow, all district regulations and procedures that have been set down," Rice said.

Superintendent Carlos Garcia said this morning while Reese's arrest is troubling, it was the district's own internal audits that uncovered the bookkeeping discrepancies.

In a district audit report prepared in June 2003, auditors said Reese was inappropriately reimbursed for $11,675 from the school bank for expenses that had already been paid with district funds. At the time auditors recommended Reese make restitution and be disciplined; he retired.

The district regularly audits all of its departments and schools, with particular focus on money raised through student activities such as vending machine sales and fund-raising activities by clubs and teams.

An investigation of former district athletics director Larry McKay -- and the Holiday Prep Classic basketball tournament he founded and administered -- is ongoing. A September 2003 audit concluded McKay had improperly reimbursed himself for unrelated expenses and that more than $100,000 could not be accounted for.

McKay has maintained that he did nothing wrong.

School police are working with the Nevada Division of Criminal Investigations on the McKay case.

"Hopefully we'll have something to report soon," Couthen said.

It can take months to gather enough evidence to submit to the district attorney to show probable cause for an arrest warrant, Couthen said.

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