01/07/2021
Auditor Galloway today outlined the successes of her Public
Corruption and Fraud Division, which has contributed significantly to her
office's fight against public corruption. Auditor Galloway launched the division and announced efforts to
direct increased resources towards investigations of fraud and abuse at the
start of 2019.
"I am proud of the work of my team and all we have
accomplished over the past two years to expose wrongdoing. This division has an
impressive record of exposing fraud and working with law enforcement to hold
those responsible accountable," Auditor Galloway said. "Each time we
uncover fraud and abuse, it puts others on notice that public corruption will
not be tolerated."
The members of the Public Corruption and Fraud Division have a
demonstrated history of working with local, state and federal law enforcement
to pursue justice for taxpayers. Since 2015, audits have resulted in 77
criminal charges against public officials. That count has doubled since Auditor
Galloway launched her team, which is made up of a dedicated group of attorneys,
auditors and investigators.
Most recently, an audit of the City of Center, located in northeast
Missouri, found the city clerk misappropriated more than $300,000 in taxpayer
funds and used them to pay personal credit cards and other personal expenses.
The clerk was indicted in federal court in November and now faces criminal
charges of wire fraud and theft. Also, in November, criminal charges were filed
against three former Parma city officials in southeast Missouri. An
audit found more than $115,000 was taken fraudulently from the city.
The division has also worked with law enforcement agencies to
build on past successes and support ongoing investigations. In 2017, an audit of
Putnam County Memorial Hospital found $90 million in
illegal billings were passed through the 15-bed hospital in northern Missouri. The Public Corruption and
Fraud Division worked with federal law enforcement agencies in Missouri,
Florida and Washington, D.C. to share information and support a national
investigation involving rural hospitals throughout the country. In 2019, the
former CEO of the Putnam County Memorial Hospital pleaded guilty to federal
health care fraud charges. In 2020, the head of a hospital management company
and nine other people were charged in a federal indictment of conspiring to
operate a multi-state $1.4 billion billing scheme that used rural hospitals to
submit fraudulent claims.
An interactive map of audits that have uncovered public
corruption, fraud and abuse is available here.
The State Auditor's Office continues to utilize the Whistleblower
Hotline, which allows individuals to report suspected fraud and abuse through
calls, emails and web submissions.
In some cases, whistleblower contacts result in audits which have
led to the filing of criminal charges and the convictions of public officials.
Investigations that don't lead to audits also have brought about changes
beneficial to taxpayers after Auditor Galloway's office has worked with
public officials to make them aware of problems that can be resolved quickly.
In other cases, credible allegations have been referred to the
appropriate enforcement authority, such as a situation this fall when the Missouri
Ethics Commission (MEC) issued an order against an official of the Ozark Fire Protection District in southwest
Missouri. The order was issued after the State Auditor's Office
investigated and found credible a whistleblower complaint that the district
made purchases without proper bidding or public notice.
Even as the office transitioned to telework in 2020 for the health
and safety of employees, the State Auditor's Office Whistleblower Hotline has
remained active. Citizens with concerns about abuse and mismanagement in
government can call 800-347-8597 or visit auditor.mo.gov/hotline to submit a complaint. Under the law, whistleblowers have the option to remain
anonymous.
More information about the Public Corruption and Fraud Division is
available here.