Taxpayers in Webster Groves unknowingly funded trips to strip clubs for a former city employee according to a new report from State Auditor Scott Fitzpatrick

A recently released investigation from State Auditor Scott Fitzpatrick uncovers egregious misuse of city credit cards in Webster Groves that includes charges made at adult entertainment establishments, a cannabis store, an Airbnb rental, and other transactions that were personal in nature. The investigation reveals how two former city employees were able to get away with more than $4,300 in personal transactions in 2024 because of significant weaknesses in the city's oversight of purchasing card activity.

"Our investigation uncovered brazen abuse by former city employees who identified the city's significant weaknesses in oversight and exploited those weaknesses for their own personal gain. The idea that someone entrusted with overseeing taxpayer dollars would abuse that trust to use city funds to pay for trips to strip clubs and to a cannabis shop is so outrageous it's almost hard to believe, but the truth is the city's lax oversight made it all too easy for this blatant abuse to occur," said Auditor Fitzpatrick. "It's a step in the right direction that these individuals no longer work for the city, have repaid a significant portion of the funds they misused, and city officials indicate they have made changes to procedures, but the city will continue to be vulnerable to this type of abuse if officials do not remain diligent in overseeing the use of the city's numerous purchasing cards."

The investigation conducted by Auditor Fitzpatrick's office revealed an accountant formerly employed by the city used a city purchasing card for personal transactions, totaling $884, from May to December 2024. Purchases included rideshare services to and from work, a purchase at a cannabis store, and charges at adult entertainment establishments. The former employee has repaid $781 of the funds, but $103 is still owed to the city. The investigation also found the former Finance Director made 61 credit card purchases, totaling $3,522, from January through October 2024 that he labeled "Inadvertent Personal Charge" on monthly transaction logs. Improper and personal transactions included American Airlines, Airbnb, grocery stores, local restaurants, and gas stations. The Finance Director submitted repayment to the city in September and October 2024.

The review also found purchases that were not properly reported or may not be prudent and necessary, including the Deputy City Manager's  purchases of a personal office refrigerator and Apple AirTags, and the former accountant's use of the purchasing card for gas and oil rather than requesting a mileage reimbursement for city business in violation of city procedures.

Fitzpatrick's report also notes that despite the inexcusable behavior that led to the termination of the former accountant and the resignation of the former Finance Director, the city violated its own personnel policies to provide both individuals with additional benefits. The city paid the Finance Director for sick leave after his resignation date, in violation of city personnel policy, and paid the accountant until December 27, 13 days after his termination. The city did not provide documentation to support these decisions.

The report recommends the city strengthen purchasing card oversight and ensure timely review of monthly statements; enforce purchasing card policies, including prohibitions on personal use and paying sales tax; and ensure policies governing office meals, food purchases, other discretionary spending, and personnel policies are followed.

The full investigative summary is available here.