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Amidatheftscandal,emails
revealfinancesindisarray
andlackofcooperationwith
Ohioofficials
June1, 2014
ByCOLINHARRIS,TribuneChronicle
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TherecentgrandjuryindictmentofaformerclerkintheNiles
treasurer'sofficeisnottheendoftroubleforthecity.
Itappearsstatefinancialandperformanceauditshavefoundthatthe
city'sutilityfundsareshortbymillionsofdollars,thecity'sfinancial
recordsareinshamblesandacityofficialmayhavemadeanillegal
loantothecommunity'syouthbaseballleague.
TheTribuneChronicleporedthroughhundredsofemailsandobtained
confidentialcopiesofanauditdraftandpreauditmeetingagenda
that,amongothermatters,indicatealackofcooperationfromthe
city'sauditorandtreasurerinreactionstorequestsfromstateofficials.
ArticlePhotos
Whilethefinalauditshavenotbeenreleased,somefindingshave
alreadybeenpassedtotheinvestigativearmofstateAuditorDave
Yost'sofficeandaspecialaudithassincebeenlaunched.
RecordsobtainedbytheTribuneChronicleshow:
Thoseareamongthefindingsmentionedinastateauditor'sdraft
reportandapreauditmeetingagenda.Sincetheauditsarenotfinal,
Iamlookingfor:
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6/1/2014 Amid a theft scandal, emails reveal finances in disarray and lack of cooperation with Ohio officials - TribToday.com - News, Sports, Jobs, Community Infor
http://tribtoday.com/page/content.detail/id/607343/Amid-a-theft-scandal--emails-reveal-finances--in-disarray-and-lack-of-cooperation-with-Ohio-officials.html?n 2/3
thesepreliminaryfindingscouldchange.
CarrieBartunek,assistantpublicaffairsdirectorandpresssecretaryfor
thestateauditor,saidThursdaythattheallegationsagainstWilson
promptedstateauditorstoinitiatea''specialaudit,''aseparate
investigationinitiatedwhenfraudormisuseofpublicfundsis
suspected.
Lastweek,CityCouncilFinanceCommitteeChairmanStevePapalas
seemedparticularlyirkedbya$15,000loanapprovedbyCityCouncil
inApril2012onbehalfofSwauger,whowasservingaspresidentof
theNilesYouthLeague.
Swaugersaidthataweatherrelatedaccidentrequiredtheleagueto
makerepairsatWaddellPark."Twodugoutswereblownoverina
windstorm,andtheleaguedecidedtotaketheopportunitytomake
improvementstothewholefieldforthebettermentofthekids,"
Swaugersaid.
Swaugersaidthe$15,000wasappropriated,notloaned,butthatthe
leaguepaidthemoneybackanyway.
"Itwasn'tatrueloanthatwasmade,''thetreasurersaid.''Council
gavemoneytotheparks,andtheycontrolledthepayout,whichwe
havesincepaidback.''
PapalassaidthatSwauger'saccountoftheeventsisnotthefullstory.
''Itwasaloan.Iwillbeclearasdaytosayitwasaloan,andIwilllook
(Swauger)intheeyeandhewon'trebutme,''Papalassaid.''He's
coveringhisrearendonthis.Thiswasanunusualrequesthemadeof
councilinthefirstplacebecausethat'snotsomethingwedo.Butthis
wastohelpthekidsplaybaseball,soweconsulted(LawDirector)
TerryDull,andhetoldusthiswassomethingwewereallowedtodo.''
Butstateauditorsinformedcityofficialsthattheloanmaynotbelegal
and,Papalassaid,couldresultinthecitybeingcitedbyYost'soffice.
PapalasalsoexpressedfrustrationwithDull,whoseofficepreparedthe
initialordinanceandverifiedtocouncilthattheloanwaslegal.
''Wewouldn'thavedonethisifTerryDulldidnottellusitwasOKto
do,butwemetinTerry'sofficeafewmonthsago,andhewasallset
totelltheauditorsthatthiswasactuallyanappropriation,''Papalas
said.''Weheardthatandmadeitclearthat,no,thiswasaloanwe
approvedanditwasnotanappropriation.''
AttemptstoreachDullforcommentwereunsuccessful.
charris@tribtoday.com
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6/1/2014 Amid a theft scandal, emails reveal finances in disarray and lack of cooperation with Ohio officials - TribToday.com - News, Sports, Jobs, Community Infor
http://tribtoday.com/page/content.detail/id/607343/Amid-a-theft-scandal--emails-reveal-finances--in-disarray-and-lack-of-cooperation-with-Ohio-officials.html?n 3/3