State auditor releases scathing report on Spring Lake finances

The Office of the State Auditor on Thursday announced new details in an investigation into the Town of Spring Lake's finances.
Posted 3/17/2022, 4:18:12 PM Updated 3/17/2022, 10:20:31 PM

INFORMATION TONIGHT HERE IN THE

WRAL LIFE CENTER. THEIR

DRAMATIC SCENE THERE, A FORMER

EMPLOYEE USE MORE THAN $430,000

IN TOWN FUNDS FOR PERSONAL

REASONS. THAT'S ONE OF THE

FINDINGS OF A STATE AUDIT OF

THE FINANCES FOR THE TOWN OF

SPRING LAKE WRAL'S GILBERT BAYS

ATTENDED A NEWS CONFERENCE.

THE TOWN'S NEWLY ELECTED MAYOR

HOSTED WHERE SHE OUTLINED THE

REST OF WHAT WAS FOUND.

>> WELL, IT TOOK NEARLY LIKE

MERAKEY ANTHONY, LESS THAN 10

MINUTES TO SUMMARIZE THE 56

PAGE STATE AUDIT.

>> BASICALLY HAS SAID FROM 2016

TO 2021, THE TOWN

MISAPPROPRIATED MORE THAN

$400,000 IN FUNDS.

>> WHAT TOWN OF SPRING LAKE HAS

BEEN IN FINANCIAL TURMOIL SINCE

OCTOBER OF 2021. THAT'S WHEN

THE STATE TOOK OVER AFTER

SEVERAL FINANCIAL

IRREGULARITIES WERE DISCOVERED.

THIS MORNING, THE STATE AUDITOR

RELEASED THE FINDINGS OF ITS

AUDIT OF THE TOWN'S FINANCES

DATING BACK TO 2015. IT FOUND

THE FORMER ACCOUNTING

TECHNICIAN USED AT LEAST

$430,000 IN TOWN FUNDS FOR

PERSONAL USE. THERE WAS AT

LEAST $36,000 IN CASH MISSING

FROM THE REVENUE AND RECREATION

DEPARTMENT'S DAILY DEPOSITS

TOWN. EMPLOYEES SPENT MORE THAN

$102,000 ON QUESTIONABLE CREDIT

CARD PURCHASES AND SPRING LAKE

OVERPAID. THE FORMER ECONOMIC

DEVELOPMENT DIRECTED BY NEARLY

$10,000. WELL, THE MAYOR

WOULDN'T TAKE ANY QUESTIONS AT

THIS MORNING'S PRESS

CONFERENCE. SHE HAD THIS TO

SAY ABOUT THE AUDIT AND THE

PERSON'S THE AUDITOR ACCUSES OF

MISAPPROPRIATING FUNDS. THE

FINDINGS OF THE REPORT DEMAND

THAT THOSE RESPONSIBLE BE

SEVERELY PUNISHED FOR THEIR

WRONGDOING.

>> AND THAT THE BOARD PUT IN

PLACE MEASURES DESIGNED TO

PREVENT ITS RECURRENCE.

THE BOARD EXPECTS THAT EVERYONE

INVOLVED IN PROBABLY IN THIS

APPROPRIATING THE TOWN'S

RESOURCES WILL BE PROSECUTED TO

THE FULLEST EXTENT OF THE LAW.

>> WELL, I REACHED OUT TO

FORMER MAYOR LARRY DOBBINS.

HE SAYS HE'S NOT READY TO

COMMENT YET, BUT ALSO TALK TO

A FORMER CITY ALDERMAN AND A

BUSINESS OWNER ABOUT THE

REPORT. YOU'LL HEAR WHAT THEY

HAVE TO SAY COMING UP AT 6 IN

SPRING. LAKE GILBERT BAYS, WRAL

NEWS DETAILS COMING OUT OF THAT

REPORT. STATE AUDITOR. BETH,

WHAT IS 14 THE RESULTS OF THE

AUDIT TO THE SBI AND FBI TO SEE

© WRAL