Wednesday, June 11, 2008 |
Contact: Larry Schepker |
Investigators Find Nixon’s Office Deliberately Misdirected $630,000 In State Funds to Wrong Bank AccountJEFFERSON CITY - Investigators today confirmed that a top official in Attorney General Jay Nixon’s office deliberately misdirected $629,987 in state funds to a trust fund account controlled by Nixon. Investigators are once again seeking answers from Nixon as to why his office intentionally directed the money to be deposited in the wrong account. "I want to make it clear that my investigation is focusing on the actions taken and instructions given by your senior staff in e-mails I discovered to deliberately misdirect the $629,987 Caremark settlement check to the Attorney General Trust Fund, even though it was made payable to the Merchandising Practices Revolving Fund," Office of Administrator Commissioner Larry Schepker wrote in a letter to Nixon. "I am unaware of any authority that allows you to direct this deposit of funds in the wrong state account. Again, for the fourth time, I ask you to explain your actions." On May 29, the Office of Administration suspended Nixon's authority to self-certify payments from the Attorney General's Trust Fund Account as part of their investigation. Despite Nixon's assertions otherwise, the Office of Administration never "processed" payments from this account when Nixon had the ability to self-certify. However, now that Nixon has been stripped of his ability to self-certify, payments from this trust fund must now be approved and processed by the Office of Administration. Today, investigators went further by informing Nixon that they will now be closely monitoring his use of the Merchandising Practices Revolving Fund to ensure no laws are broken by Nixon's office in the handling of additional settlements. "From the information I have discovered, it is apparent that you intentionally misdirected the Caremark settlement proceeds into the Attorney General Trust Fund because the statutory and appropriation limitations of the Merchandising Practices Revolving Fund clearly prohibited the distributions you sought to make," Commissioner Schepker wrote. "Therefore, because I am aware of additional and similar settlement proceeds coming to your office on behalf of the state of Missouri, I am alerting you that I will be monitoring that Fund to assure that you do not attempt to use it contrary to law." Commissioner Schepker also pointed out to the attorney general that his request for the e-mails, records or correspondence pertaining to the receipt, deposit and distribution of funds in the Caremark case was not made pursuant to the Missouri Sunshine Law. The commissioner of Administration serves as custodian of all general accounting books and all papers relating to the accounts and contracts for the state of Missouri (33.060, RSMo). Under the law, Nixon has no discretion to withhold relevant e-mails, records or correspondence relating to the receipt, deposit and distribution of monies in this case. Nixon's office has admitted there are more e-mails, records and correspondence that are relevant to the Office of Administration's investigation that they have not provided. Commissioner Schepker has given Nixon until Tuesday, June 17, 2008, to provide this additional information. Commissioner Schepker has also requested a meeting with Nixon's Fiscal Officer. Letter to Attorney General Jay Nixon ### Go to News Releases Index |
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