An Elk City woman has been arrested on embezzlement charges following an investigation into fraudulent activity involving forged checks and unauthorized credit card charges.

According to a probable cause affidavit, 63-year-old Jo Elaine Earnest was taken into custody at her residence on November 20 after admitting to misusing funds.

The investigation began on November 10 when a local business owner reported suspicious financial transactions. The owner discovered that Earnest, a former employee, had allegedly forged multiple checks and made unauthorized charges to a company credit card, totaling thousands of dollars. Surveillance footage confirmed Earnest’s involvement, showing her cashing a fraudulent check at a local grocery store.

Evidence revealed that Ernest had charged $12,000 to a credit card and withdrawn approximately $6,000 from company accounts. When interviewed by police, Earnest admitted to the embezzlement and stated that the funds had been spent at a casino and on methamphetamine.

Earnest was arrested and transported to the Beckham County Jail, and bond was set at $20,000. Authorities are continuing their investigation, and additional charges may be filed as an internal audit uncovers further discrepancies.