COLUMBUS – A special audit released Tuesday details the investigation of the former mayor of the Village of Ithaca in Darke County, who was convicted of theft in office over improper compensation, reimbursements, and purchases he made, Auditor of State Keith Faber announced.

As of December 2024, David Peterson had repaid the full findings for recovery of $38,845.46, which included court-ordered restitution and additional funds identified by the Auditor of State’s Special Investigations Unit (SIU).

The full report is available online at ohioauditor.gov/auditsearch/search.aspx.

SIU began its investigation in March 2022 on request from the Darke County Sheriff’s Office over allegations of wrongdoing by Peterson.

Peterson served as mayor of Ithaca from Jan. 1, 2012, through April 20, 2020. During that time and through Aug. 31, 2021, Peterson also served as fiscal officer for the village after firing the previous officeholder.

SIU determined that Peterson, while serving in the two positions, purchased power equipment for his personal use with village funds, received reimbursements for supplies without supporting documentation, and was overpaid more than $17,000 due to improper calculations or compensation for mayor and fiscal officer that was not allowed.

SIU and the Darke County Sheriff’s Office presented their findings to the Darke County Prosecutor’s Office, and Peterson was indicted in January 2024.

As part of a plea deal, he admitted to a single felony count of theft in office and agreed to pay restitution totaling $37,788.04 and complete a substance abuse/mental health intervention program. The court agreed to consider a request to terminate in lieu of conviction following payment restitution, court costs, and supervision fees.

Since 2019, the Special Investigations Unit has assisted in 130 convictions resulting in more than $10 million in restitution (see Map of SIU Convictions since January 2019). The team receives hundreds of tips of suspected fraud annually. Tips can be submitted anonymously online or via SIU’s fraud hotline at 866-FRAUD-OH (866-372-8364).

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The Auditor of State’s Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.

Public Affairs
Contact: Marc Kovac
press@ohioauditor.gov