North Liberty woman accused of misusing money sues partner - KWWL - Eastern Iowa Breaking News, Weather, Closings

North Liberty woman accused of misusing money sues business partner

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Melissa Marie Frost Melissa Marie Frost
IOWA CITY (KWWL) -

A North Liberty woman accused of misusing money from the company she co-owns, has now filed a lawsuit against her partner.

Melissa Frost, 31, was charged last week with first degree fraudulent practices after her business partner went to police. Charles Wolfe alleges that Frost took money to cover $22,000 in personal credit card bills.

Frost filed suit on Monday asking the court to dissolve the company, expel Wolfe as a member of the company and award damages to her.

Frost says that Wolfe went to police to cover-up his own wrongdoing.

Wolfe is not charged with any crime.

 

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A North Liberty woman is facing fraud charge after being accused of stealing thousands of dollars from the business that she co-owned.

Iowa City police say they met with the co-owner of C & M Tax Service in January 2012 who had evidence that his partner Melissa Marie Frost, 31, of North Liberty was manipulating records to show major differences in equity between owners.

He also told police that he had been locked out of the financial software for the business in October 2011 and was denied access by Frost.

Police say that Frost used money from the business savings account to cover over $22,000 in credit card bills.  Officers say that many of those credit cards are in the business name, but Frost is the only authorized user.

Police say that Frost has also manipulated business accounting records that has resulted in inaccurate tax returns being filed with the state and federal government.

Frost is charged with first degree fraudulent practices.

 

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