SOUTH AMHERST, Ohio - For years, some residents here could see their village clerk-treasurer busily scraping away at piles of instant lottery tickets behind the counter of their local gasoline station.

Recently, they learned that she'd allegedly been playing with their money.

Police charged Kim Green with stealing more than $500,000 from village accounts, equal to about a quarter of what the town spent in all of 2013.

Chief Roger Kimble says he wrestles with the knowledge that the biggest crime in village history took place just steps away from his office.

"The estimated half-million dollar figure is a low amount," Kimble said. "It will turn out to be a lot more than that."

He said his investigation found that much of the stolen money was gambled away on state lottery tickets, including some at the Sunoco Service Station across the street from Town Hall.

Green worked as a manager at the station while also working as village clerk-treasurer, Kimble said. She resigned her village office in April, as the investigation began.

Green is the wife of village councilman John Green, who has missed the last several council meetings. The family's phone has been disconnected. Her attorney, Jack Bradley, did not return phone calls for comment Tuesday.

Police say she wrote numerous checks to herself from the village account, and may also have used the village's credit card to charge personal items.

Green was released Tuesday afternoon from the Lorain County Jail on a $240,000 bond. She faces arraignment at 9 a.m. Thursday. She was indicted last week by a Lorain County grand jury on theft in office and tampering with records charges.

Over the past two years, she could often be seen sitting at the Sunoco counter scratching off instant lottery tickets.

The Ohio Lottery Commission said Green has won $277,250 since 2006. That includes $12,500 that the commission is withholding from Green's recent winnings, upon an order by South Amherst police.

The lottery commission tracks winnings over $599, lottery spokeswoman Danielle Frizzi-Babb said.

"We have no way of knowing how many instant tickets are cashed under that amount," she said.

Theft discovered after vendor complaints

Village council members Donna Hauck and Janice Szmania discovered the alleged theft last month when vendors complained that they were not being paid.

"They went to the bank and got copies of the canceled checks and realized that there was a large number of checks that Green made out to herself and then cashed," Kimble said. "So far, we have only gotten through checks from 2013 to 2015."

Green worked for the village since 2010, he said. She was filling in temporarily until she has elected as clerk-treasurer in 2012.

Hauck said she grew suspicious of Green because of her failure to answer questions.

"We would ask her for information about finances and she always say, 'This is what it is,' and not provide what we asked for," Hauck said. "We would press her for details and she would always promise to provide it, but never would."

Hauck said the village has tightened controls against theft, including requiring additional scrutiny on any checks issued by the village.

Police and village officials said the government is operating on recently cashed-in CDs. City officials Monday night said they believe all outstanding bills have been paid.

South Amherst is a village of 683 houses and 1,688 people. Residents seated around a table at Piggy's Main Street Market, the unofficial village gathering place, said Tuesday that they were appalled by the recent developments. The theft was the main topic of conversation.

Residents concerned about financial instability

"I can't believe no one noticed what was going on all this time," said resident Lucy Costanzo. "I say fire the mayor, fire council and ask Amherst to annex us."

Danny Hyster, another village resident, had questions about oversight.

"I just can't understand it," he said. "Wasn't anyone over there paying attention? How could a person write so many checks out to themselves and not be noticed?"

Piggy's owner Michelle Henke noted that Green has not yet been convicted of a crime. She voiced a larger concern -- how much trouble is the village in financially?

"How does the village move forward from this?" Henke asked. "How will the village ever recoup these kind of losses?"

Police and village officials are trying to figure out how much is missing from the village coffers.

In 2013, the village spent $1.9 million, meaning the missing $500,000 would be more than 25 percent of everything spent that year.

"We really don't know how much is missing," said Mayor Barbara Becker at Monday night's council meeting. "We're trying to figure it out."

That has not been easy, said newly appointed finance officer Jeanne Maschari.

"Things are very difficult because her (Green's) office is considered a crime scene and is off-limits to us," Maschari said. "I have contacted the village's creditors to make sure that they have been paid and was happy to learn that the payments are current."

Law Director Michelle Nedwick said Monday that Green's assets have been frozen.

Nedwick said Green was bonded for $10,000. The village is checking with its insurance carrier to determine if it is covered for the missing money.

Chief Kimble and several council members also questioned why the problems were not discovered by recent audits conducted by the Ohio Auditor's office.

Special state audit possible

Carrie Bartunek, spokeswoman for the state auditor, said the combined 2012-2013 audit of the village did not reveal missing money, but noted "discrepancies" in the bookkeeping methods.

She said they have not done an audit for 2014 and 2015, but that a special audit was possible in light of recent events.

Throughout Monday night's meeting, council members avoided looking at the empty chair reserved for Councilman John Green, the husband of the former clerk-treasurer.

"Well, what are we going to do about that?" asked resident Edward Lalonde, motioning to the empty chair. "He has not shown up for the last three council meetings. Doesn't that mean he's out?"

Council President David Leshinski said no one has heard from Green and "as far as we know, he was not involved in anything." But council is docking his pay for missing meetings.

John Green did not respond to knocks at his home.

"John said he knew nothing about it," said Kimble. "They took out a second mortgage on his house to work on a garage. They own two older cars and their bank accounts are dry."

At the council meeting, Leshinski said he is looking for volunteers to help out on South Amherst Pride Day, which is this Saturday.

"We are all victims here," he said. "Now, we all have to pull together and get through this. We have to make sure the village continues to exist."