DES MOINES – The wheels of justice for white collar crime once again produced punishment, this time for an Iowa woman who scammed over $200,000 from a Chamber of Commerce.
On June 25, 2018, the Webster City Police Department requested the assistance of the Division of Criminal Investigation (DCI) on a financial investigation involving the Webster City Chamber of Commerce and a former employee.
As a part of that investigation, the Office of Auditor of State conducted an audit of the Webster City Chamber of Commerce for the period of October 1, 2013, through June 30, 2018. That audit identified numerous improper disbursements. The Office of Auditor of State released their findings on July 3, 2019. The audit examined financial transactions processed by the former Financial and Administrative Assistant, Leah Mulholland. Iowa Auditor Rob Sand reported the special investigation identified $239,586.23 of improper disbursements and $23,602.83 of unsupported disbursements. Sand also reported the special investigation identified a $1,128.00 refund issued to the Chamber for overpayment of their state income tax which was not deposited into the Chamber’s bank accounts.
The $239,586.23 of improper disbursements identified includes:
• $190,489.58 of payments to or for Leah Mulholland, including unauthorized checks, excess gross salary, and the Chamber’s share of payroll costs,
• $14,497.00 of transfers from the Chamber’s primary checking account to the Chamber’s “Chamber Bucks” bank account which were not approved,
• $15,725.09 of vendor payments,
• $10,086.57 of penalties and interest paid to the IRS and the Iowa Department of Revenue,
• $3,950.00 of checks redeemed for cash and cash withdrawals, and
• $4,837.99 of bank fees.
The $23,602.83 of unsupported disbursements identified includes:
• $19,422.51 of vendor payments,
• $4,058.48 of reimbursements issued to 2 former Executive Directors, and
• $121.84 of reimbursements issued to Mulholland.
Sand also reported it was not possible to determine if additional amounts were improperly disbursed or if additional collections were not properly deposited because adequate documentation was not available.
As a result of the ongoing criminal investigation, on February 19, 2020, Leah Rae Mulholland, age 40, of Webster City, Iowa, was arrested and charged with Ongoing Criminal Conduct (Class B Felony), Theft 1st Degree (Class C Felony), Unauthorized Use of a Credit Card (Class D Felony) and Forgery (Class D Felony).
Mullholland pled guilty to a charge of first-degree theft and was sentenced to a 10-year suspended prison sentence, five years of probation and a suspended $1,000 fine. Other charges were dismissed. Court records show Mullholland must pay $193,205.08 in restitution and $140.00 in court costs.
