12/06/2022 - Jefferson City, Mo.
The former
city clerk of Parma was sentenced on Monday (Dec. 5) after pleading guilty to a
felony charge of stealing from the Missouri Bootheel town of 713. Helen Frye
was ordered by the New Madrid County Circuit Court to pay restitution of
$37,626 to the city and was sentenced to seven years in prison. She received a
suspended execution of sentence, meaning she will serve 120 days in prison and
then be placed on probation.
A 2020 audit
by State Auditor Nicole Galloway determined that more than $115,000 was taken
fraudulently over a four-year period from Parma through payroll overpayments
and improper payments and purchases. The audit also found that the officials
primarily responsible for Parma's financial matters -- Frye and former mayor Tyus
Byrd -- falsified meeting minutes and financial reports to conceal the fraud. Byrd
also was charged with stealing and is awaiting trial, as is former city water
supervisor David L. Thatch.
"In the
course of our audit, we found a blatant pattern of corruption and cover-up that
cost the citizens of Parma more than $115,000," Auditor Galloway said.
"As we've proven time and again, audits are an indispensable tool to
uncover fraud, corruption and mismanagement. My office will continue to work
with law enforcement on the other charges in this case to pursue justice for
local taxpayers."
Since 2015,
audits by Auditor Galloway's office have resulted in 81 criminal charges
against public officials who betrayed the public trust.
Information from previous news
releases about the 2020 audit of Parma and the follow-up review by the State
Auditor's Office in 2021:
In late
2018, the Auditor's Whistleblower Hotline received complaints about the
operations and finances of Parma. As part of the initial investigation, the
Auditor's Office requested records from then-Mayor Byrd, who was elected in
2015. While some records were provided, auditor staff had to make additional
efforts to obtain the remaining records requested.
On April 16,
2019, a new mayor and two new aldermen were sworn into office in Parma. That
night, there were suspicious fires at city hall and at the former mayor's home,
during which some city records and computers were destroyed. Shortly after the
fires, the Parma Board of Aldermen passed an ordinance formally requesting an
audit.
The audit
found that from April 14, 2015 through April 16, 2019, at least $115,582 was taken
fraudulently from the city. The fraud included payroll overpayments and/or
improper payments to the mayor, the city clerk, and to city officials and
others who were related to the mayor or the city clerk. The mayor and city
clerk made improper purchases using prepaid debit cards and the city's Walmart
credit card, including gift cards, appliances, furniture and electronic
equipment.
The audit
also estimated more than $7,000 in improperly recorded utility payments and
adjustments to utility bills on the accounts of the mayor, water supervisor,
the alderman who is the mayor's father, an alderwoman, and a church. The city's
electronic utility system was destroyed in the city hall fire, but auditors
were able to compile information for the audit from paper reports, bank
statements and other documents.
The mayor
and city clerk also falsified Board of Aldermen meeting minutes and financial
reports. The city clerk falsified cash balances of some bank accounts on
financial reports; most of the inaccurate financial reports prepared for the
board were reviewed and signed by the mayor. The city clerk also did not timely
file and remit various payroll taxes. As a result, the city was assessed over
$114,000 in past due taxes, interest and penalties.
A complete
copy of the 2020 Parma audit can be found here. Because of
the poor rating, the State Auditor's Office conducted a follow-up review to
assess the city's progress on the audit's recommendations. That follow-up review found that
current city officials had implemented or made progress to implement the 26
recommendations.
