10/20/2025 - JEFFERSON CITY, Mo.
Missouri State Auditor Scott Fitzpatrick recently checked back in with
the Dunklin County Sewer District to see how the district is recovering from
the potentially criminal actions of a husband and wife duo who ran the
district.
A 2023 report released by Auditor Fitzpatrick found at least $160,675 in
missing or misappropriated funds and gave the district the lowest rating of
"poor." The initial report took place while the district was in
receivership and managed by the City of Malden. As of May 2025, the Dunklin
County Reorganized Common Sewer District 1 is now managed by a newly created Board of Directors. The
follow-up report issued today finds the reorganized district's Board is making
progress as it seeks restitution for the missing funds and pursues the criminal
prosecution of former Board President Korey Adams and the district's former bookkeeper, Jennifer Adams.
"I know this has been a long and difficult road for the people served
by the sewer district, but I am hopeful the legal system will soon hold Korey
and Jennifer Adams accountable for their misdeeds. They should serve as a
cautionary tale for any public official who chooses to abuse the public's trust
and as a reminder that misusing public funds will inevitably lead to criminal
prosecution. I'm proud of the work done by my office to bring the mismanagement
of the sewer district to light and hopeful the newly formed district is now on
a path to prevent the mistakes of the past from happening again," said
Fitzpatrick.
The follow-up report notes the new Board for the district is continuing
to work with law enforcement and continues to seek restitution. Jennifer Adams
was charged with 3 counts of class C felony stealing and 16 counts of class D
felony stealing. Her case is currently set for trial in March 2026. Korey Adams
was charged with 3 counts of class C felony stealing and 14 counts of class D
felony stealing. His case is set for trial in November of this year.
The follow-up report also reviews the Board's efforts to resolve unpaid
taxes with the IRS. The initial report found the Bookkeeper failed to ensure
payroll tax forms were filed and payroll taxes were remitted to the IRS in a
timely fashion. As a result the sewer district was assessed $756 in penalties,
$287 in interest, and $1,881 in additional taxes. As of July 8, 2022, at least
$10,202 was still due to the IRS and significant interest and penalties were
still accruing.
The follow-up notes that while the sewer district was in
receivership, no IRS filings were necessary because the sewer district had no
employees. However, the Board has indicated it will be working to address and
resolve any tax issues related to the sewer district. Additionally, the initial
report found the former Bookkeeper did not report everything she paid herself
to the accounting firm for inclusion on her W-2 form. The follow-up notes the
Board is working to amend the former Bookkeeper's W-2 forms.
The full follow-up report is available here.
