OpenCdA applauds Athol’s newly-installed Mayor Darla Kuhman for her candor in trying to right the city’s finances after former City Clerk Sally Hansen was charged in federal court with stealing approximately $400,000 from the city during her five years of employment. Hansen was also faces 15 counts of wire fraud.
Unfortunately for Mayor Kuhman and the citizens of Athol, the Idaho County Risk Management Program (ICRMP) has informed the City that ICRMP intends to deny the City’s insurance claim to recover much of the loss, because the City had failed to conduct the statutorily-required audits during at least part of the loss period. That law clearly states, “It shall be the duty of the council in every city to cause to be made a full and complete audit of the financial statements of such city as required in section 67-450B, Idaho Code.” But as Mayor Kuhman was quoted saying in this morning’s Press article, referring to the required audits, “They just didn’t do it.”
“They just didn’t do it.” Really? “Why, there ought to be a law against that!” someone will scream.
It turns out, there is a law against it. The law is Idaho Code, § 18-315 – Omission of Public Duty. It’s pretty straightforward in its wording:
Every wilful [sic] omission to perform any duty enjoined by law upon any public officer, or person holding any public trust or employment, where no special provision shall have been made for the punishment of such delinquency, is punishable as a misdemeanor.
The key word is “wilful” or willful. It means that the offender(s) meant the outcome to occur. In this case, it would mean that the Athol City Council didn’t intend to have the audits done. It appears to us the city Council didn’t intend for the audits to be done or the City Council would have directed that they be done. That’s a reasonable opinion for us to form, we think, since the City Council had access to legal counsel, the City Council presumably understood its duties individually and collectively as prescribed by law, and the City Council presumably was aware of the terms and conditions of its insurance through ICRMP before signing off on the agreement.
Our bigger concern is Mayor Kuhman’s remarkably succinct explanation for the City Council’s apparent failure to perform their duty: “They just didn’t do it.” That is not unique to Athol’s City Council.
Well-paid Coeur d’Alene city officials had the responsibility to properly verify Sheryl Carroll‘s background before they hired her and then to supervise her after she was hired so she couldn’t steal from the City. They just didn’t do it.
Well-paid Coeur d’Alene city officials had the responsibility to ensure that the chief of police and his command staff were properly adhering to laws, policies and practices regarding personnel administration and discipline in the firing of police lieutenant Dan Dixon. They just didn’t do it.
The School District 271 Board of Trustees and the school superintendent had the responsibility to ensure that the Winton Elementary School renovation project was properly and competently managed so that a significant financial shortfall didn’t occur. They just didn’t do it.
The mayor and city council of Bell, California, had the responsibility to ensure that City Administrator Robert Rizzo and his assistant Angela Spaccia (known as Angela Sheffield when she was Kootenai County’s finance director) weren’t able to loot the city’s treasury. They just didn’t do it. (And because the mayor and some members of the council benefited from the looting, they are doing jail time for their involvement in the Bell scandal.)
Even here in Kootenai County, Idaho, the year is now 2015. It is no longer 1950. It is reasonable for us to expect that those people who run for or seek appointment to public office and positions of public trust will have the commitment to learn and the ability to understand the duties and responsibilities of their office. That expectation applies to law enforcement, prosecutors, and judges as well.
At the same time, we as citizens need to heed Athol Mayor Kuhman’s advice as well. It concluded the January 8 Press article:
… Kuhman wants to encourage people, no matter where they live, to start paying attention to local government.
“Go to your city council meetings and demand to see the bills,” she said. “I wish I would have started doing that sooner, but it’s much easier to think someone in the city is taking care of you – but often times they are not.”
Very wise words from Athol, Idaho, Mayor Darla Kuhman.
Don’t forget Sandy Martinson who embezzled a great deal from the County and yet seven external bank accounts of the former Sheriff have never been audited by the County auditor’s office. Two still exist today outside the Control of the BOCC, Auditor, and Treasurer in violation of IC 31-3301 and IC 31-809 among others.
Martinson with David McDowell and Rocky Watson operated two accounts that weren’t in a County approved bank holding the Courts money for months and years at a time in violation of IC 18-5701 among others that nobody has audited even though Martinson stole from a Court bank account.
Back to the City of Athol given the statute for Omission of Duty that you quoted that involved the acts of the City administration on top of the theft you would think the insurance would kick in some where as opposed to pointing out more laws were not followed there for we pay nothing.
The primary duty of the Prosecutor irrespective of police powers and the primary duty of the Sheriff are to enforce all statutes IC 31-2227. In this case no police report is needed the disregard for following the law is publicly admitted. I guess now the Prosecutor and Sheriff are in violation of IC 18-315 because they just don’t do it.
Comment by Appalled — January 10, 2015 @ 9:50 pm
Appalled,
I’ve edited your comment to hyperlink your I.C. citations to the online I.C. That will make it easier for readers to read for themselves and better understand the gravity of your allegations. I didn’t relink to I.C. 18-315 in your comment because it was linked in the body of my post.
Comment by Bill — January 11, 2015 @ 6:34 am
Why aren’t Appalled’s claims being investigated? People just don’t make this stuff up. I also find it highly unlikely that at least three of these clerks who have been convicted within the last couple of years of embezzlement were acting alone. WTH is going on? There is a carte blanche license existing in Idaho allowing people in authority and elected positions to just steal from us. Who do you complain to when there is no one in the state that will act on behalf of the citizens. I am appalled!
Comment by Stebbijo — January 11, 2015 @ 12:18 pm
Stebbijo,
I’m not sure Appalled’s allegations are not being investigated. One of the frustrations of lodging an allegation which could result in an inquiry or investigation is that the investigating agency may not necessarily recontact the complainant unless additional information is needed. Of course, that leaves the complainant hanging and wondering if the allegations are being investigated or ignored.
It would not surprise me if the three clerks (Martinson, Carroll, and Hansen) were able to work alone. They were insiders who were able to discern the vulnerabilities in their respective accounting systems so they could manipulate those systems. And they were working for supervisors (Martinson = Dan English, Carroll = Troy Tymesen) who were remarkably derelict in their administrative and supervisory duties. From what Mayor Kuhman was saying in the article, it sounds as if the same was true in Athol as well. It was the supervisors’ jobs to ensure that appropriate safeguards were in place to prevent one person acting alone to be able to embezzle. It was also the supervisors’ jobs to ensure that appropriate measures were in place to quickly detect any irregularities, indicators of theft. The supervisors didn’t do their jobs, maybe because they were lazy or incompetent or simply indifferent to the responsibilities that went with their respective positions.
Your last question is a very good one. When it appears that the state’s criminal justice components (law enforcement, prosecutors/AG, and judges) are more concerned about turning their backs on crimes amounting to public corruption or exploitation of the public trust than on doing the jobs they were elected or appointed to do, to whom does the public turn? It’s almost as if in Idaho, only the politically-connected citizens can hope for “equal” protection under the laws, doesn’t it?
Comment by Bill — January 11, 2015 @ 12:47 pm
Thank you Bill for inserting the links to the statutes. I recall an article that reported Martinson stating how easy it was to steal what she stole.
Before Barry McHugh heard from Dan English about the embezzlement I filed a formal compliant with him pursuant IC 31-2227 about two of the external accounts Martinson was handling and he did nothing other then meet with Martinson and others in executive session with the then BOCC about me resulting in making illegal decisions in executive session.
When Martinson was charged she was no longer working for the County and because Barry’s office was so in bed with Martinson he had to seek outside counsel for prosecution. I later addressed several formal complaints with Barry and I learned where public officials are concerned he simply gives them a free pass. No matter the information he will not prosecute a public official
At one point Barry agreed to address with me five complaints per elected official and after the first two I found he fully supported each activity but when we were finished he lost. The last one involved the Attorney General stepping in who sided 100% with me several years ago. After that Barry refused to address any more complaints. It was truly like dealing with a child.
Comment by Appalled — January 11, 2015 @ 5:19 pm
Appalled, can you tell us more about the two accounts, still existing today, that have not been audited? Bill, maybe all of these clerks acted alone, but it appears too coincidental to me. But, what were the chances of Ms. Angela Spaccia ever having any connection to this area?
Comment by Stebbijo — January 11, 2015 @ 7:11 pm
One is the Sheriff’s writs and garnishment account that the Sheriff claims does not involve public money. Public money is defined as money that comes into the possession of a public official. Externally operating these accounts means that no other official is scrutinizing and auditing the accounts. The other account is the Sheriff’s Inmate Trust Account (ITA).
Last summer the Sheriff informed the BOCC that no checks were being written on the ITA however that was not true. Over 100 checks continued to be written month after month Oct14 USB Inmate Trust. On this account you will see checks for four, eleven and twelve cents. Normally the largest check is the check the Sheriff writes to his Commissary fund for his share of phone proceeds.
The Sheriff also informed the BOCC that only inmate’s money was being run through the ITA account. That also was not true phone commissions are paid by family members, friends and bonding companies that lands into the external bank account. Last September phone commissions were paid by check back into a fund the Sheriff has spent thousands from outside of his budget Check September14.
Other phone commissions are earned by the County and offset when the County writes a settlement check back to the phone provider. Invoice September14. Last year the Sheriff and the former fiancé director informed the BOCC that the ITA was being audited by the Auditors office that was not true.
As you can imagine this has become an accounting nightmare and the hardest record to get from the Auditor is anything to do the Inmate phone provider Telmate. The BOCC approved the Telmate contracts and the Auditor wants nothing to do with everything Telmate.
Comment by Appalled — January 11, 2015 @ 11:32 pm
Stebbijo,
Apparently the chances of Sheffield/Spaccia having connections here were quite good, because she did! Her grandfather lived in Post Falls. As I put in my December 11, 2013, post titled Former Kootenai County Finance Director Convicted in CA: Corruption:
Remarkably, both the Cowles and Hagadone skewspapers avoided any reporting about Sheffield/Spaccia’s Idaho connection and her employment as Kootenai County Finance Director.
During the development of the Bell corruption scandal, I stayed in contact with the Los Angeles Times principal reporter covering the investigation and trial. I have high hopes that one day, he and the LA Times will publish either a book or at least a serialized newspaper feature about the Bell scandal.
Comment by Bill — January 12, 2015 @ 7:25 am
It seems to me that McHugh prefers to target the easy to win (and understand) cases – take the arrest warrant for the 9-year old of which the Huffington Post claims is now in juvenile detention for allegedly stealing a pack of gum.
Go get-em Barry, adolescents, the elderly, and too poor to defend themselves.
Comment by Old Dog — January 12, 2015 @ 1:33 pm
Old Dog, I just watched/read that news article … I thought maybe your comment was in jest. This kind of stuff, unfortunately is becoming too normal, here.
Comment by Stebbijo — January 12, 2015 @ 6:41 pm
Old Dog,
It’s typical for mediocre to inferior prosecutors to go after the low-hanging fruit such as the drug dealers, child molesters, rapists, etc — the people Idaho juries can easily convict without a second thought.
However, I strongly suspect there is much more to the story about the arrest warrant being issued for a 9-year old for allegedly stealing a pack of gum. For example, assuming the facts are correct and accurate as the skews media are reporting it, if the child was endangered because of his living conditions and child protective services couldn’t or wouldn’t act, then giving law enforcement a valid albeit wobbly reason to enter the home and remove the child could be in the child’s best long-term interest. And of course, the prosecutor is given far less latitude than defense attorneys when talking about the substance of a case.
Comment by Bill — January 12, 2015 @ 6:57 pm
Old Dog,
And now we know more from this morning’s skewspaper. But we also know less.
Why in the world did the district court judge Lansing Haynes even authorize the arrest warrant? Is he just another one of Kootenai County’s and CdA’s many “rubber stamps”? This country already has too many judges who are so insecure in their positions that to curry favor with the cops and others whom they believe can influence their reappointment or reelection, they will sign anything put in front of them. Only time will tell if Haynes is one of them.
The records are sealed because the child is a juvenile, but I’d really like to know what the affidavit from the PFPD alleged as fact and requested from the prosecutor and court.
The bottom line, though, is that this would have been the right time for the Prosecuting Attorney’s office to exercise its prosecutorial discretion.
Comment by Bill — January 13, 2015 @ 6:31 am
This incident was mocked by bigger and better publications, thus now the damage control begins. Mchugh isn’t taking all the blame becase he threw in the bit about the judge. And, we all know judges don’t read, they do however, “rubberstamp” … like old dog tells us in so many words, the poor,elderly,and folks that cannot defend themselves are easy marks and easy revenue. At this rate, this all might be a sick twist to get to the parents. Not enough dogs here to go after, or nickelback songs …time to get a 9 yr old gum thieves.
Comment by Stebbijo — January 13, 2015 @ 7:31 am
Stebbijo,
Typically the skewsmedia get it wrong when they say things like, “The prosecutor issued a warrant for…” That misstatement is one of my many peeves about news reporting. When judges come up for reappointment or election, the public often forgets (if they ever knew) that a judge reviewed the supporting documentation and had the authority to either issue or deny the application for the warrant. I’m glad this time the name and position of the issuing judge was included in the article.
Comment by Bill — January 13, 2015 @ 7:56 am
Meanwhile back at the City of Athol no time to investigate or prosecute anyone who failed their duty to perform the audits required by law or at the County when allowing numerous external bank account to come and go without a single audit. It’s only the public’s money.
At the County settlements have long been disregarded IC 31-2112 between the Auditor and Treasurer additionally IC 31-2604 (5) between the Auditor and the Prosecutor. County officers are required to file quarterly sworn statements IC 31-3101 they just don’t do that either.
No need for the Idaho State legislature to put any time into making laws for these officials in the State of Kootenai who enforce the laws to abide by for them it is a mere inconvenience. Ones duty doesn’t enter into it unless they are going after a citizen then that is a horse of a completely different color.
Comment by Appalled — January 13, 2015 @ 8:31 am
Short memory(ies)? Cda Press, Judge Haynes, reelection story, January 10, 2014.
Comments to Kootenai County Reagan Republicans at Fedora Pub and Grille.
He proclaimed his a “conservative”. The story states, “As a conservative judge he maintains the perspective that an intervention into the liberties of citizens–in instances such as search warrants–should never become routine.” Well, okay, one would think that an arrest warrant might also be an intervention into the liberty of…well lets say a 9 year old.
Comment by up river — January 13, 2015 @ 9:06 am
There is one store in Post Falls that has a “zero-tolerance” policy regarding shoplifting: Walmart. Handful of grapes can get you arrested, flat-screen TV gets you televised on all three local networks. No direct evidence that this was Walmart, but at some time we have to ask how much does is really cost for the public to enforce corporate policy when enforcement becomes an overwhelming burden and is considered by most to be irrational.
In my day – yes when I stole a pack of gum – I ended up sweeping the guys sidewalk for a month. But we became “friends” and he later gave me “gum” to keep the sidewalk swept and shoveled. I’d like to think I am a better man because of how the store handled the situation. They didn’t even tell my parents, but that probably wouldn’t have made the lesson any better.
It takes most cities the size of Hayden or Post Falls an additional 1.5 cop to enforce theft, vagrancy, and trespass policy of Walmart so whether you shop there or not you are paying Walmart via taxes, bonds and deferred residential service. Numerous books on the topic – but the books forgot about the poor tike and his well being in the future.
Will he grow up to respect the workings and intent of law or will he become a bitter criminal antagonist because he got thrown in jail for three days when he was 9 for stealing a dollar worth of candy? I hardly call the Order or seemingly unquestioning chain of command an error on the part of any individual, but rather, the system that allows Walmart-like corporate policy to affect reasonable public policy. Then multiply the number of kids who first got cuffed and stuffed across the Walmart chain for similar offenses – we gotta ask, what have we become? And how cheap is that loaf of bread?
Comment by Old Dog — January 13, 2015 @ 3:36 pm
If you have ever been to an Athol city council meeting, you will see first hand the overt hostility the members show towards each other. Two very decided camps.
That aside, there is a member that has bailed out a friends defunct business by purchasing used kitchen equipment at prices that are higher than new; passed 3-2.
There is another member that has unlawfully billed the city for work he did (approx 17K) that should be brought to light and repaid.
Their budget meeting was appalling; when asked to approve, all agreed until it was mentioned by someone in the audience that the numbers didn’t add up. The city attorney even said “well if that person found the errors, maybe that person can help fix the problem”…the problem is the council past and present that doesn’t understand the statutes or basic accounting methods. They, after a cursory glance go ahead and sign checks..maybe to to tune of $417k??
The citizens of that city should be furious and demand the councils resignations and restitution for unlawful billings.
Comment by LucyA — January 15, 2015 @ 8:14 am