Indiana AG lawsuit: President of Marion County Fair Board Association allegedly misappropriated fund

INDIANAPOLIS -- Indiana Attorney General Todd Rokita has filed a lawsuit alleging that the president of the Marion County Agricultural Fair Association Board misappropriated taxpayer funds to finance home improvement projects.




According to documents obtained by FOX59/CBS4 on Friday, Rokita is looking to recover more than $12,000 worth of public funds, plus penalty fees and audit costs, following the conclusion of an investigation led by the Indiana State Board of Accounts into Cindy Mowery. Mowery has served as the president of the Fair Association since September 2018.

What does the SBOA report say?

The state launched an investigation last year when the former executive director of the Fair Association Board accused Mowery of misappropriating funds.




The SBOA's report, filed on March 7, 2024, documents Mowery's alleged misuse of Fair Association funds totalling $4,500 between Jan. 1, 2020, and Dec. 31, 2022. The report details how Mowery allegedly authorized a $7,500 check on Nov. 13, 2021, to have painters complete work at her home. According to the report, these painters had previously painted at the lodge on the Fair Association grounds.




The SBOA noted that the check was written from the Fair Association's bank account and the payment was reportedly made by the Fair Association's executive director.




"Thirty-nine days after Mowery proposed additional funding from the City/County Council, the
November 13, 2021 check for $7,500 was written from the Fair Association's bank account for the painting performed on the lodge and work performed at Mowery's personal residence," the SBOA report said.




Mowery allegedly used the funds to have the siding on her home painted, stain her deck and remove mildew from a nearby building.




The report also noted that the Fair Association failed to provide "adequate supporting documentation for expenditures." The SBOA went on to state that this "lack of oversight" allowed Mowery to allegedly use taxpayer funds for personal home improvement projects.




The Fair Association receives funding from the City of Indianapolis, typically in the amount of $100,00 a year. Prior to the alleged incidents of misuse, the SBOA report references a proposal Mowery submitted on Oct. 5, 2021, where she requested an additional $50,000 appropriation. In May 2022, the Indianapolis-Marion County Council approved an additional $50,000, bringing the total amount of funds the Fair Association received that year to $150,000.

Rokita's lawsuit

Rokita's lawsuit, filed on March 7, centers on three separate counts focused on recovering public funds. It accuses Mowery of using public funds for her own personal gain while violating state guidelines.




For the "Malfeasance, Misfeasance and Nonfeasance" count, the state is requesting $12,487. This includes SBOA audit costs worth $7,648.67 and $4,500 for misappropriated funds, according to the lawsuit. The state is seeking a repayment of $4,500 for the "Unjust Enrichment" count.




The third and final count is referred to as the "Policy Liability", with the state seeking $12,148.67. The Travelers Casualty and Surety Company of America, the insurer for the Fair Association, is also named as another liable party.

'I did not misappropriate or misuse any public funds': Mowery's response

The SBOA report included Mowery's response to the allegations in the form of an email that she sent to the SBOA on Feb. 4, 2024. Her full response can be viewed below:




"Please accept this email as my official response to the SBOA's report on the Marion
County Fairgrounds. I appreciate the time and effort that it took to investigate and compile the report. My official response to the Report is that it is incorrect. I did not misappropriate or misuse any public funds. I did not have my house painted with funds from the Marion County fairgrounds. I personally paid to have it painted. I gave Mr. Tevebaugh cash to pay the painters for any work that they had done at my house. I should also be noted that I took a polygraph test, that supports my position. I would appreciate a re-review of the information and removal of any fees or charges that have been leveled against me."





via: https://fox59.com/news/indiana-ag-lawsuit-president-of-marion-county-fair-board-association-allegedly-misappropriated-funds/