Criminal investigation in Humansville questions misuse of public funding

HUMANSVILLE, Mo. – Allegations that officials misused taxpayer money sparked a criminal investigation in a small Polk County town.

KOLR 10 Investigates received a tip from concerned citizens after the Missouri State Highway Patrol showed up at Humansville City Hall asking for financial documents.

Reports KOLR 10 Investigates obtained show as much as $100,000 vanishing and then reappearing in city accounts.

“We started digging what we could and the numbers just weren’t adding up,” said Robert Thomas, a southside alderman in Humansville.

The Highway Patrol confirmed to KOLR 10 Investigates that it launched an investigation into the city’s finances on April 5.

Mileage Reimbursements

One area of the city’s finances that people were especially concerned about was mileage reimbursements.

Treasurer’s reports show Utility Clerk Sophia Piper was reimbursed more than $1,500 for mileage between August 2023 and March 2024.

KOLR 10 Investigates called Piper for an explanation about those reimbursements but she didn’t respond. We took our questions to a recent city council meeting where the following exchange took place between Piper and Chief Investigative Reporter Lauren Barnas.

Lauren: “Sophia, I see that you were reimbursed thousands of dollars in mileage and other reimbursements over the course of eight or nine months. I’m wondering if you could answer where you were driving that you racked up thousands of miles on the city’s dime?”

Sophia: “I drive back and forth to the bank weekly because we can only have a certain amount of money in the building for a certain amount of time.”

Lauren: “And who was writing the reimbursement checks?”

Sophia: “Mayor pro-tem…city clerk…not me. I don’t do that.”

Lauren: “And who was signing these checks?”

Sophia: “Mayor pro-tem…city clerk.”

Records KOLR 10 Investigates obtained show Piper did sign at least one check written to herself for more than $300 in 2021.

And Alderman Ashley Albright said mileage reimbursement checks were written for things other than mileage.

“I personally received a check for a Christmas bonus that was documented as a mileage reimbursement that I turned over to the highway patrol,” said Albright.

Calls for a State Audit

She’s one of two aldermen who are adamant the city consults with the state for an audit.

“Our city should be held accountable,” said Albright. “And that’s all we want is accountability for our taxpayers.”

When the question of whether to invite the state to conduct an audit went to a vote on April 9, it failed 3-2. Alderman Gary Shannon explained why he voted against it.

“I found a couple line items that were done incorrectly but that’s simple adjustments…no $100,000 adjustments,” said Shannon.

Unaccounted ARPA Funding

Our investigative team showed Shannon $106,000 in federal ARPA funding listed in the city of Humansville’s budget to end 2021 but the money drops to $0 at the start of the new year.

Shannon told us he was aware of the discrepancy, but he believes although the money goes missing from the financial report it didn’t actually leave the account.

Treasurer reports indicate some of that ARPA funding doesn’t reappear in the books. The city’s ARPA fund decreases by almost $4,000 from November 2023 to January 2024.

Mayor Tracy Mason said the city earmarked that money for technology upgrades but that wasn’t documented in the November report and December’s treasurer’s report was not available.

We took years of financial statements and treasurer’s reports to an expert. Kyle Goodin teaches finance at Missouri State University and has previous experience investigating fraud for the state auditor’s office.

Goodin said numbers not fluctuating from month to month can be a red flag.

“If you look at all of these accounts very few of them actually change,” said Goodin. “So to me that looks like someone who’s trying to pull the wool over someone’s eyes.”

Election Interference Investigation

There’s another investigation happening in Humansville.

The Secretary of State’s office has recommended charges to the Polk County prosecutor in a separate election interference investigation.

KOLR 10 Investigates also obtained a copy of the complaint that sparked the election investigation through a public records Sunshine request. Piper is accused of preventing candidates from running against Mayor Mason and others in the April 2024 election.

Aldermen told KOLR 10 Investigates that since we showed up at May’s city council meeting, both the newly hired city clerk and the city’s attorney have resigned.

Contact KOLR 10 Investigates

If you have a story you’d like Chief Investigative Reporter Lauren Barnas to look into, contact her via email or through our tipline.

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