Iowa workers paid for Christmas parties by selling county's scrap metal

03/26/2014

Iowa prosecutors want two former Adair County, Iowa, employees to pay thousands of dollars for selling the county's scrap metal to fund Christmas parties.

Duane Jameson, the former Adair County roads supervisor, and Cindy Butcher, a former shop clerk, both have pleaded guilty to third-degree fraud, an aggravated misdemeanor; and misconduct in office, a serious misdemeanor. The two could be ordered to pay damages totaling more than $26,150, plus more than $16,000 in fines.

Their pleas come a little more than a year after a state audit identified more than $19,000 in funds that were unaccounted for related to sales of scrap metal and other county property.

Jameson and Butcher pleaded guilty this month in return for prosecutors not pursuing jail time, said Geoff Greenwood, a spokesman for the Iowa Attorney General's Office. Both were originally charged with misconduct and first-degree theft — a felony.

If a judge accepts the agreement, maximum fines could total $8,125 for each of them. Sentencing is scheduled for May 5.

In addition, the state is seeking a total of $26,150 in damages from the two: $19,734 of proceeds related to the sale of scrap metal and other county property, $5,009 for the cost of the audit and $1,407 in attorneys' fees related to the audit, according to court documents.

A judge will decide how much Jameson and Butcher have to pay.

The state auditor's investigation began after the county auditor received an anonymous letter accusing the two of pocketing cash they received from selling old iron, according to the report.

A subsequent report by the Iowa State Auditor's Office said Jameson and Butcher sold scrap metal, some of it material from old Adair County bridges, to at least one local salvage yard. Jameson told investigators that the money was going to fund employee Christmas parties and retirement gifts, according to the 2013 report.

During an interview with investigators, Butcher said deposits “didn't get done” because the County Board would not have approved payment “because we probably weren't supposed to be having a party on county time,” according to the report.

Officials placed Jameson and Butcher on administrative leave on Jan. 23, 2013. They resigned two days later, according to the county.

Criminal charges were filed against the pair, who were arrested last July.

John Twombly, a member of the Adair County Board, said Tuesday that the county has made a number of changes based on the auditor's recommendations. Salvageable material is now sold at auction, usually once a year, rather than hauled to a metal buyer.

“There were a lot of things on the security end of it, and we've just tightened all those up,” Twombly said.

Jameson and Butcher could not be reached for comment Tuesday.

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