City Council gets involved in court fraud case

The request petition will be forwarded to the state auditor’s office.

The meeting was held at council’s request to discuss recent findings in the investigation into missing funds – estimated between $1 million and $1.2 million – at the municipal court.

The investigation began in mid-June, though the city’s Finance department began noticing discrepancies about a year ago. Since then, an accounting services representative has been arrested and fired, and Court Administrator Janice Piper has resigned.

State and federal law officials have said the case may be the largest embezzlement scheme involving public funds in Missouri’s history.

During the Aug. 14 meeting, Rowe said most of the findings of the contracted BKD LLP forensic examiner should be turned over to police within 30 days. Rowe also noted that the U.S. Secret Service has been involved with the investigation from the onset to provide assistance and oversight.

Council discussed any steps taken in the disciplinary process and decisions made regarding personnel actions with employees involved in the investigation. Corrective actions for preventing fraud in the future also were discussed.

Further discussion was held regarding the opportunity for the city to receive restitution.

The city said in its July 26 investigative report that it estimates insurance payment restitution to total up to $197,500 – $100,000 per employee, per incident, minus a $2,500 deductible.

An improved reporting system to council was detailed at the meeting as well. The Finance department will forward monthly financial statements to the council’s finance committee, with additional copies for all council members.

The Aug. 14 meeting was closed because it involved personnel matters and potential litigation.

This story originally appeared in SBJ’s Aug. 14 free e-news Daily Update. Click here to register.