UPDATE 2/8/13 6:00 p.m.
INEZ, Ky. (WYMT) - Eight people in Martin County are now facing felony charges related to organized crime.
State police say those eight were obtaining and cashing checks illegally from the water district.
Martin County Water District officials say they do not know how it happened.
"We really have no understanding of what was going on," said Water District Manager John Mills.
They say late last year their accountants told them something was wrong.
"We have a private firm that takes care of our billing and accounts payable," said Mills.
The accountants say they noticed something fishy seemed to be going on with the water district's account, so they immediately shut down their office and started looking into every other account for irregularites. Certified Public Accountant Linda Sumpter says what they found was alarming.
"A contractor may have been paid more than what he was entitled to," she said.
They notified state police who determined eight people were behind the crime. On Thursday a Martin County grand jury indicted Jerry L. Maynard, Colby C. Maynard, Nannie Lucy Blackburn, Dennis Scott, Alvin Wesley Johnson, Melissa Hinkle, Justin Keller, and Sean Keller.
They are all facing felony charges of engaging in organized crime.
"This is a very unfortunate event," said Sumpter.
She says none of her other accounts were compromised.
"Luckily our CPA office caught this in a timely manner," said Mills.
Officials are not saying how much money the group took from the water district, but they did say the accounting firm reimbursed the district for all of it.
INEZ, Ky. (AP) - A grand jury in Martin County has indicted eight people on charges of organized crime in thefts from the local water district.
Kentucky State Police said those arrested include seven people from Inez. They are identified as 24-year-old Jerry L. Maynard, 26-year-old Colby C. Maynard, 35-year-old Nannie Lucy Blackburn, 38-year-old Alvin Wesley Johnson, 28-year-old Melissa Hinkle, 29-year-old Justin Keller and 27-year-old Sean Keller.
Also charged was 34-year-old Dennis Scott of Pilgrim.
State police said the suspects fraudulently obtained checks from the Martin County Water District and cashed them.
They are all charged with engaging in organized crime.
KSP Detective Jason Dials continues an investigation of the case.