JEFFERSON CITY 鈥 A husband and wife duo may have drained a small-town sewer district of more than $160,000, a new report says.
State Auditor Scott Fitzpatrick said Tuesday the couple used money that was supposed to help operate the Dunklin County Sewer District like a personal piggy bank, writing checks for Christmas bonuses and giving themselves advances on future paychecks.
鈥淭his is a clear and egregious violation of the public鈥檚 trust as taxpayer dollars were mismanaged by the individuals who were entrusted with the responsibility of overseeing the operation of the sewer district. My office will continue to work with law enforcement to ensure justice is served,鈥 Fitzpatrick said.
The audit provides another example of local government corruption in Missouri鈥檚 Bootheel.
In June, Fitzpatrick said the former acting mayor of Holland, located in nearby Pemiscot County, failed to deposit money to pay city utility bills in city accounts. A review of Acting Mayor Jessica Roach鈥檚 personal bank accounts noted large cash deposits totaling the same amount that wasn鈥檛 placed in city coffers, the audit said.
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In the Dunklin County report, auditors detailed how the sewer board president, Korey Adams, and his wife, Jennifer Adams, who was serving as the district鈥檚 bookkeeper, diverted money and sewer services totaling at least $62,000 from the district between 2017 and early 2021.
An additional $98,096 was not deposited during this time and is also likely missing. A review of the Adamses鈥 personal bank accounts found cash deposits totaling $29,146, the audit noted.
In one instance, Jennifer Adams issued a $450 check to herself indicating it was for a Christmas bonus and mileage.
The missing or stolen money isn鈥檛 the only legal issue facing the couple.
By hiring and paying his wife to serve as bookkeeper, Korey Adams violated a constitutional prohibition on nepotism. And, the Internal Revenue Service has made claims against the couple.
Fitzpatrick said a lack of oversight played a role in the couple鈥檚 ability to tap into funds meant to assure wastewater collection and processing for 253 customers in Malden, a city of 4,200 residents.
According to the audit, a board charged with governing the district had vacant positions for more than four years, leaving the district under the control of the Adamses.
The audit, which was commissioned under former Auditor Nicole Galloway, was requested by the City of Malden after the sewer district was placed under receivership in 2021 because it was unable to pay its bills.
The district is now being operated by the city.