Auditor Of Public Accounts
Federal Grand Jury Returns Indictments Involving Missing Funds from City of Providence
David L. Huber, United States Attorney for the Western District of Kentucky, announced today that a federal Grand Jury in Bowling Green has returned indictments charging two individuals formerly associated with the City of Providence, Kentucky with violating federal criminal laws. The Federal investigation stemmed from the report of an examination of the City of Providence by Kentucky State Auditor Crit Luallen that was first released in April 2004, and was expanded upon in December 2004. The Auditor’s examination report, which was given to the Kentucky Attorney General’s Office and the Federal Bureau of Investigation, uncovered a discrepancy between customer utility payments made to the City, and bank deposits of utility receipts from January 1, 2001 through March 16, 2004, totaling $900,721. The examination also questioned five checks totaling over $18,000.
"As I have stated throughout the nearly two years my office has been involved in this case, these are serious discrepancies with over $900,000 in public funds that could not be accounted for. These findings have now resulted in Federal criminal indictments. This is an example of why Kentucky needs an independent watchdog for the people’s money. It also demonstrates how waste, fraud, and abuse can be discovered and prosecuted when government agencies work together," said State Auditor Crit Luallen.
NOTE: United States Attorney contact is Mr. Sandy Focken 502-582-5911.