Office of Administration
 Matt Blunt, Governor - Larry Schepker, Commissioner
 
 
 



Commissioner's Office

Thursday, May 29, 2008
For Immediate Release

Contact: Larry Schepker
573-751-1851

OA Investigators Suspend Nixon's Authority to Use Trust Fund Account

JEFFERSON CITY - Under investigation for his handling of a $630,000 settlement, Attorney General Jay Nixon was informed today by investigators with the Office of Administration that his authority to spend money in the Attorney General's Trust Fund was being suspended. Office of Administration Commissioner Larry Schepker informed Nixon's office today that his use of the account would be restricted to only approved expenditures after investigators found that Nixon's office had deliberately deposited a settlement check into the wrong account. The Office of Administration said it is restricting Nixon's use of the account to preserve the status quo as it awaits requested information from the Attorney General's office.

"It is clear from information that I have already discovered in my investigation that your office took deliberate steps to deposit the settlement check made payable to the Merchandising Practices Revolving Fund into the Attorney General Trust Fund," Commissioner Schepker wrote. "In addition, your response to my repeated requests for information have been inadequate. As a result, you leave me no choice but to suspend your office's authority to self-certify disbursements from the Attorney General Trust Fund so that I can preserve the status quo."

Schepker said in accordance with the duties bestowed on the Commissioner of Administration pursuant to Chapter 33 RSMo, there will be no further disbursements from the Attorney General Trust Fund without this office's expressed prior approval.

"I do not take this action lightly. I ask that you cooperate with this investigation so that I can reach a timely conclusion," wrote Schepker.

Commissioner Schepker, who is investigating Nixon's office at the request of House Budget Chairman Allen Icet, said Nixon's response to his investigation has been limited and he repeated his request for Nixon to produce a complete response to his request for information.

Rep. Icet requested the OA investigation over concerns that Nixon's office may have mishandled $629,987 in proceeds from a multi-state settlement with Caremark, a prescription benefits manager, by spending the money without the approval of the General Assembly.

Letter to Attorney General Jay Nixon

 

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