News Employee Arrested in Embezzlement

A Newport News advertising representative has been arrested on suspicion of embezzling about $20,000 in commissions from ads he allegedly placed in the newspaper without advertisers’ approval, police and the newspaper said Friday.

Larry Michaels Botts, 31, was being held in Newport Beach City Jail in lieu of $10,000 bail after his arrest at his Newport Beach apartment late Thursday, said Sgt. Andy Gonis.

Botts, who began working at the weekly paper in August, placed advertisements and then kept the commission he earned from the newspaper, which is based on the number of ads he placed each week, a newspaper official said. Botts then allegedly told advertisers to ignore bills the Newport News sent.

Newport News publisher Kay Schrock said she became suspicious of Botts’ accounts when the newspaper began issuing more collection bills than Botts’ contract detailed. She said that on Tuesday night she began an audit of Botts’ accounts. She called police on Thursday morning.

Schrock, trying to head off any damaging effect the embezzlement might have with advertisers, made numerous calls and personal visits with businesses since the arrest, telling them the Newport News will absorb the cost.

“Fortunately, none of our advertisers have been harmed,” she said. “We are the only ones who have been affected by this.”

The alleged embezzlement is another blow to the paper, which began publishing July 4, 1991. In November, The Newport Beach-Costa Mesa Pilot sued the News, claiming it inflated its circulation figures and was stealing away advertisers. Schrock has denied any wrongdoing.

The cost of that legal battle and this unexpected charge “hits real hard,” Schrock said.

“The cash flow is definitely hurting, but I have other resources” to help the paper financially, Schrock said.