Kentucky Attorney General Jack Conway Grows A Backbone, Will Investigate Kentucky League Of Cities.
Attorney general investigating KLC
By Linda B. Blackford
The state Attorney General's office has confirmed that it is investigating the Kentucky League of Cities for possible illegal activity.
"My official policy is not to comment on active investigations, that is an active investigation," Conway said Tuesday. "There is some activity that is potentially criminal."
Conway would not say what activity might be illegal. In a report in December, State Auditor Crit Luallen detailed a host of problems at the League, including high expenses, questionable bonus practices and conflicts of interest. She forwarded the audit to Conway's office.
In 2009, Luallen audited the Blue Grass Airport, the Kentucky Association of Counties and the League, spurred by stories in the Herald-Leader about hundreds of thousands of dollars in expenses by those groups' officials.
Both KACo and the League sit on multi-million dollar finance and insurance operations that provide services to counties and cities, which also pay them dues for membership.
Luallen's airport audit was forwarded to the Attorney General's office, which resulted in four former airport officials being indicted on charges of theft by deception.
John Coon and John Slone, two former deputy directors, pleaded guilty to amended charges of conspiracy to commit theft by deception. The charges are misdemeanors, which could mean up to 12 months of jail time. The plea deals require them to testify against former airport executive director Mike Gobb and deputy director John Rhodes.
Conway's office declined to investigate KACo.
The difference, Conway explained to the Herald-Leader in November, was that the KACo Board of Directors had given its officials wide latitude in their spending. At the airport, state auditors found instances where officials misrepresented the purpose for purchases to the board.
Luallen's audit found numerous problems in the League's insurance arm, including gifts to League employees from insurance vendors hired by the League, ranging from greens fees to trips to the Caribbean.
The League has changed numerous policies in the wake of the audit, including limiting credit card use and stopping spousal travel. Newly passed legislation will also require KACo and KLC to be more transparent.
Jackson Mayor Mike Miller, who chairs the League's executive board of directors, declined to comment in detail.
"I'll let the Attorney General do what he thinks needs to be done," he said.
... .
Read more: http://www.kentucky.com/2010/04/13/1222627/attorney-general-investigating.html#ixzz0l25yIL9f
By Linda B. Blackford
The state Attorney General's office has confirmed that it is investigating the Kentucky League of Cities for possible illegal activity.
"My official policy is not to comment on active investigations, that is an active investigation," Conway said Tuesday. "There is some activity that is potentially criminal."
Conway would not say what activity might be illegal. In a report in December, State Auditor Crit Luallen detailed a host of problems at the League, including high expenses, questionable bonus practices and conflicts of interest. She forwarded the audit to Conway's office.
In 2009, Luallen audited the Blue Grass Airport, the Kentucky Association of Counties and the League, spurred by stories in the Herald-Leader about hundreds of thousands of dollars in expenses by those groups' officials.
Both KACo and the League sit on multi-million dollar finance and insurance operations that provide services to counties and cities, which also pay them dues for membership.
Luallen's airport audit was forwarded to the Attorney General's office, which resulted in four former airport officials being indicted on charges of theft by deception.
John Coon and John Slone, two former deputy directors, pleaded guilty to amended charges of conspiracy to commit theft by deception. The charges are misdemeanors, which could mean up to 12 months of jail time. The plea deals require them to testify against former airport executive director Mike Gobb and deputy director John Rhodes.
Conway's office declined to investigate KACo.
The difference, Conway explained to the Herald-Leader in November, was that the KACo Board of Directors had given its officials wide latitude in their spending. At the airport, state auditors found instances where officials misrepresented the purpose for purchases to the board.
Luallen's audit found numerous problems in the League's insurance arm, including gifts to League employees from insurance vendors hired by the League, ranging from greens fees to trips to the Caribbean.
The League has changed numerous policies in the wake of the audit, including limiting credit card use and stopping spousal travel. Newly passed legislation will also require KACo and KLC to be more transparent.
Jackson Mayor Mike Miller, who chairs the League's executive board of directors, declined to comment in detail.
"I'll let the Attorney General do what he thinks needs to be done," he said.
... .
Read more: http://www.kentucky.com/2010/04/13/1222627/attorney-general-investigating.html#ixzz0l25yIL9f
Labels: Keeping them honest, Kentucky politics, Unbridled arrogance, Unbridled thievery
posted by KYJurisDoctor at 8:13 PM
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