(Michigan City, IN) - An act of taxpayer fraud is under investigation in Michigan City.  According to the mayor’s office, $175,000 was recently discovered missing from the city’s bank account.

The city was expecting a prescription drug related cash reimbursement but never received it, officials said.  After the vendor responsible for making the deposit was contacted, officials said evidence of electronic fraud from an outside source developed.

Authorities said the theft was carried out by forging the signature of a city official and processing fraudulent documents.  The funds intended for the city wound up in a different bank account in another state.

Mayor Duane Parry emphasized the theft did not involve a city employee.  Parry said the city is working to have the funds restored and police are conducting a criminal investigation to try and identity who was responsible.