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Kentucky State Auditor Launches Covington Investigation

Reported by Joe Webb   @joewebbwkrc

Kentucky State Auditor announced today a full, special examination, of the financial operations of the city of Covington.  This comes on the heels of the firing and arrest of former finance director Bob Due whos accused of stealing around $600,000.

Edelen says he has the investigation has two goals. The first is two make sure the Commonwealths Attorney has the full scope and degree of the theft.  The second is to provide the Mayor and her council with a road map for making sure appropriate levels of controls and policies are in place to prevent this from happening again.

Edelen has appointed his chief deputy, Libby Carlin, to head the investigation.   The investigation will cover the 14 years Bob Due served Covington as finance director.

The auditor made the announcement jointly with Kenton County Commonwealths Attorney Rob Sanders and Covington Mayor Sherry Carran.

Its absolutely essential we find out exactly how big this theft was.  Its important so that justice can be served.  Its important so that restitution can be ordered.  And thats the first thing I hope comes out of the auditors participation in this case, Sanders told reporters during the news conference. I dont think anybody can say with absolute certainty that we have found the bottom of this hole.  Thats why the auditors office has been called in.

A lawsuit filed by the city against Due claims he wrote more than $590,000 in checks to his aunt, his wife and himself on city funds.  Finance department employees first discovered the questionable transactions on August 22nd.  Due was arrested the next day and charged with theft by unlawful taking, unlawful use of a computer, official misconduct and criminal possession of a forged instrument.  The city fired him August 27th.  Two days later, city officials say Due attempted to kill himself.  The next day the city sued Due and got a court order freezing his assets.

During the news conference, Edelen pointed out that hes spent a lot of time in Northern Kentucky this year. His office has conducted investigations in Dayton and Walton.

I think its important that the good, taxpaying public in Northern Kentucky know that there are levels of government that are focused on making sure those who abuse public trust are held to account.




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