Nixon's Office Under Investigation For Handling of $630,000 in State Funds
Investigation Initiated at the Request of House Budget Chair
JEFFERSON CITY - Commissioner Larry Schepker today announced the Office of Administration will investigate Attorney General Jay Nixon's handling of $629,987 in state funds acquired through a multi-state settlement with a prescription benefits company. The investigation into Nixon's office was initiated at the request of House Budget Chairman Allen Icet who expressed concern that Nixon and his office may have misappropriated state funds by spending money without the approval of the General Assembly.
"At your request, I have begun an investigation of Attorney General Nixon's receipt, deposit and expenditure of state funds received by his office pursuant to the settlement agreement reached with Caremark, a prescription benefits company," Commissioner Schepker wrote in a response to Chairman Icet's request for the investigation. "The legal questions you raise surrounding Attorney General Nixon's possible misuse of state funds are serious and must be fully examined. If it is determined they are liable, I will make every effort to recover this money on behalf of the state."
Commissioner Schepker said he agreed with Chairman Icet that the Attorney General has no authority to appropriate state funds, establish new government programs or expend funds for a purpose other than as approved in an appropriation by the General Assembly. The investigation will determine if Attorney General Nixon and his office overstepped their authority with their conduct in the Caremark case.
Additionally, Commissioner Schepker said he agreed with Chairman Icet that Missouri may have lost substantial federal matching funds for health care because Nixon did not allow one of Missouri's eligible health or senior programs to utilize this money.
"I have received information that the Attorney General's office may have deposited state funds from this settlement in an inappropriate treasury account. My office's investigation will begin immediately to explore all available options including the suspension of payments from the account the Attorney General is using to spend the money from this settlement."
This is not the first time the Office of Administration has been forced to look into Attorney General Nixon's spending of state funds. Schepker's predecessor Commissioner Mike Keathley found that Nixon was inappropriately using his state car for political purposes and an Office of Administration investigation and a report by the State Auditor found that Nixon owed Missouri taxpayers at least $55,632.31 for his political use of state resources. Due to Nixon's poor record keeping and the destruction of documents related to his political use of his state car, Missouri taxpayers may never know the full extent of Nixon's use of his state vehicle for his campaign and whether Nixon actually owes significantly more to the state.
Nixon's office first announced the multi-state settlement with Caremark on February 14, 2008. The actions that led to the settlement were led by Illinois Attorney General Lisa Madigan and Maryland Attorney General Douglas Ganslar, not Attorney General Jay Nixon. Since the settlement, Nixon created a new government program and spent nearly half of the money from the settlement without an appropriation by the General Assembly, public involvement or oversight.
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