Sunman woman charged with Theft, Official Misconduct

Denise Lunsford

Denise Lunsford, 59, of Sunman, was officially charged by the Ripley County Prosecutor’s Office with Official Misconduct, a Level 6 Felony, and Theft, in an amount over $750, a Level 6 Felony on Tuesday, February 24. Shortly after charges were filed, a warrant was issued for her arrest, which followed on Wednesday, February 25, 7:33 a.m. at the Ripley County Jail.

The Osgood Journal first reported on this situation on January 13 after Sunman Town Clerk Cheryl Taylor found a discrepancy in funds for the town’s utility department and forwarded that information to the State Board of Accounts (SBOA) back in September of 2025. Lunsford was an employee of the Town of Sunman at that time serving as the utility clerk.

The SBOA filed their response on January 6, 2026. They requested Lunsford refund the town $5,662.73. The Indiana State Police conducted a criminal investigation, forwarding information to the Prosecutor’s Office alleging that Lunsford was responsible for the missing funds. At that time the SBOA also requested that Lunsford reimburse the State of Indiana $4,840 for special investigation costs.

In the initial article in the Osgood Journal on January 13, 2026, it read, “While the clerk-treasurer was assigned responsibility for failing to implement stronger segregation of duties, town officials said there was no attempt to conceal the incident. They went further to say the town’s Leadership (Taylor) acted immediately once the issued was identified.
At that time Taylor told the Osgood Journal the town has one full-time clerk-treasurer, and two part-time positions – a utility clerk and office assistant. She said combined the two part-time roles total fewer than 30 hours per week. She also noted that with limited staffing and financial resources, it is not feasible without adding funding or personnel to avoid this type of situation. She works diligently for the town and noted they are working on getting a full-time utility clerk by 2028 to strengthen segregation of duties and improve internal controls.

Taylor told the Osgood Journal in January that Lunsford was immediately fired after she was confronted with the allegations.

It is important to note that information provided in the charges and probable cause affidavit are allegations. According to Deputy Prosecutor Shane Tucker, “Lunsford is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.”