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LINCOLN, Neb.—The former Phelps County deputy treasurer has pleaded no contest to a felony charge of theft by unlawful taking.

Mary Hammond, 66, of Holdrege, was fired last spring after her arrest on suspicion of embezzling about $31,000 from the Phelps County Treasurer’s Office between Jan. 1 and May 7, according to internal county and Nebraska State Patrol investigations. She entered her plea Friday in Phelps County District Court.

She is suspected of keeping a portion of the county’s bank deposits, which she was responsible for delivering to the bank, and making false accounting ledger entries.

Theft by unlawful taking is a Class III felony punishable by one to 20 years in prison, a $25,000 fine, or both.

Sentencing is set for Oct. 16.

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