Larry Moore, Muskogee County district attorney, requested a state audit after his own investigation led to criminal charges against the mayor and former and current Webbers Falls Board of Trustee members.
The Office of the State Auditor and Inspector (OSAI) conducted a special audit of Webbers Falls records from Jan. 1, 1995, to May 1, 2009. The auditors discovered payments equaling $505,309.08 from town funds for salary, car allowances, insurance, and bonuses.
According to the state auditor, the town board began voting themselves compensation in 1995 during a special meeting April 10, 1995, but examiners could find no record the ordinances were published.
State law requires the salaries of town officials be set by ordinance. It also requires the ordinances be published within 15 days after passage, but the auditors found no indication the ordinances were published.
The examiners found numerous cases where the board voted themselves raises during their current terms of office. In other cases, the payments to board members increased without board action. The examiners stated, “These increases may be contrary to the Oklahoma Constitution.”
The audit report said the town’s records were disorganized, incomplete, missing and in disarray.
Payment history
The examiners reviewed the circumstances surrounding payments being made to members of the town board and the payments for each year from 1995 through 2009. The audit report states there were payroll records unavailable for some years and the auditors had to rely on check registers.
According to the audit, the June 6, 1995, board meeting minutes reflect the board voted in favor of granting Mayor Jewell Horne compensation of $500 per month. A check register attached to the June 22, 1995, meeting minutes indicates Horne received a net pay of $458.84.
On Dec. 5, 1995, the board voted to give Horne a raise of $150 per month with the notation “this will be car expense.”
From January 1996 through December 1996 Horne continued to receive a $500 monthly salary and an additional $150 monthly car allowance. In total Horne received $7,800 in compensation for 1996.
During 1998 Horne was paid $7,800, which included $6,000 in salary and $1,800 for car expenses. In addition to the $7,800 in salary and car allowance, Horne received a bonus of $107.65 in December 1998. Horne appeared to be the only member of the board who received compensation from the town during this year.
During 1999, Horne continued drawing a salary of $500 per month. In August Horne’s car expense amount was increased from $150 per month to $182.50 per month. Horne was also paid an additional $135.35 bonus in December.
On February 6, 2001, the board passed an ordinance, which established salaries, raises, health insurance, and retirement for the board.
Horne continued receiving a $500 monthly salary as well as a $210 car allowance. On June 5, 2001, the board voted to raise the mayor’s salary from $710 to $1,000. The previous compensation as a car allowance appeared to be considered a salary.
On Sept. 4, 2001, the board voted to give Horne the authority to make decisions related to salary raises. According to the examiners, beginning in September, Horne gave herself and board member John Pollard a raise. Horne’s salary increased to $1,400 a month, and Pollard’s salary increased to $500 a month. Although Horne’s car allowance was merged into a salary compensation package, Pollard continued to receive a monthly car allowance of $227.50. Both Horne and Pollard received additional compensation in December of $271.13 and $215.30.
During 2002, Horne continued to be paid $1,400 per month until March when her salary increased to $1,950. Pollard continued receiving $500 until March. In March Pollard’s monthly salary increased to $1,050 per month. Pollard continued receiving $227.50 per month treated at various times as either car expense or insurance.
Three more board members added to the town’s payroll in 2002. Larry Chappell and Eddie Ward began receiving $550 per month in March, Richard Cude began receiving $200 a month salary, and $303 a month for insurance. The three board members and Horne all received bonuses in December 2002 that totaled $1,356.81.
In March 2005 Horne’s salary increased to $2,650 per month. Board members Pollard and Chappell received salaries of $550 per month plus insurance payments of $292.54 a month until October when the amount decreased to $229.77.
On May 10, 2005, Matt Myers was sworn in as a new board member replacing Eddie Ward. In June, Myers began receiving a salary of $550 a month and, beginning in October, a monthly payment for $292.54 for insurance.
Beginning in May, Henry Tipken and Stan Cowan replaced Cude and Chappell on the board. On May 8, 2007, the board voted in favor of compensation for members. Board members, including the newly elected members, received $550 a month. Pollard, Myers and Tipken received an additional $229.77 through August 2007. Also in May Cowan took over as mayor and began receiving a salary of $2,650.00 per month. Horne’s salary was reduced to $550 per month.
In October, Horne resumed the position of mayor. A new board member, Loren Dwyer, filled the position vacated by Cowan.
In May 2009 the board realized there was not a valid ordinance on file concerning payments being made to themselves and adopted an ordinance establishing a pay rate of $550 per month for each trustee and $650 per month for the mayor. Horne received $10,600 in salary and Pollard, Myers, Tipken, and Dwyer has received $2,200.
On June 9, 2009, Horne and Tipken stopped receiving their pay as trustees until after an investigation by the Muskogee County District Attorney’s office was completed. The town’s payroll records reflect May 15, 2009, was the last time Horne or Tipken were paid.
In July Bob Ogg and Loren Dwyer were both elected to the town board. During the July 2009 meeting, the board voted in favor of having Horne serve as mayor again.
Horne was charged Dec. 10 with 15 felony counts of embezzlment, totaling $229,460 and eight current and former Webbers Falls trustees were charged with embezzlement.
Audit recommendations
The auditors recommend the board obtain the training and assistance needed to develop and implement written policies and procedures to ensure complete and accurate records are maintained and to ensure its operations and ordinances are in compliance with statutory and constitutional law. They recommend the board take steps to ensure members are aware of the ordinances and adhere to their provisions.
Waives preliminary
The former mayor of Webbers Falls waived her right to a preliminary hearing in Muskogee County District Court Tuesday.
Jewell Horne was charged Dec. 10 with 15 felony counts of embezzling $229,460. Horne has served as town trustee, city manager, water administrator, gas administrator and even police commissioner over the last 20 years.
Horne will stand trial on 15 counts of embezzlement. Her arraignment will be March 18. Horne is accused of receiving an annual salary since 1995 without a legal ordinance which designated a salary. She is also being accused of giving herself raises.
Horne could face up to 15 years in prison and a fine that triples the amount of money allegedly embezzled.
