Final audit details extent of village’s financial mess

YOUR MONEY

The greed and corruption of former Mount Sterling village Administrator Joe Johnson is well- known by now.

During Johnson's 4- year stint as administrator of the Madison County community, he was responsible for stealing almost $ 900,000 in public funds and now is serving a 10- year prison sentence.

His conviction last year of engaging in a pattern of corrupt activity, felony theft in office, money laundering and tampering with records was the result of a special audit, whose final report was released Tuesday by the Ohio auditor's office. It paints a clearer picture of how Johnson was aided by a staff he bullied and cajoled, pressuring them into aiding his crimes.

“This report marks the final chapter of one of the most deplorable and devastating cases of local government corruption in recent memory,” Auditor Dave Yost said. “Hopefully, taxpayers can find some solace in the knowledge that those responsible are answering for their crimes and will never again have a chance to ransack the community.”

The audit showed that 11 people, including the village’s former mayor, Charles Neff, have been ordered to repay a combined $ 998,050.

More than 87 percent of that is tied directly to Johnson, who misused the funds on a "laundry list of high- priced personal items" while also overpaying himself $ 368,682 over four years.

Records show that Johnson charged more than $ 228,000 to his village- issued credit card to buy himself vehicles, electronics, snow plows, trailers, a camper, a tractor and a four- day vacation at the Westin Resort in Cape Coral, Florida, in 2014.

Back home, he spent $ 16,083 on fuel for his high- performance vehicles, including a Dodge Charger.

Johnson's corruption was rivaled only by his ability to conceal, a council member says.

Long- time Village Solicitor Mark Pitstick attended most council meetings and is paid $ 40,000 annually to ensure that the village complies with the law. But even he was unaware of the scope of misconduct.

"There were things that each of us could have done," said Rebecca Burns, a councilwoman since 2014 who chairs the finance committee. "I don't know what ( Pitstick) was being told. So much was behind closed doors back then. I think he was as blindsided by this as anyone else.

"It was shame on each of us for not noticing."

Pitstick, an attorney in Washington Court House in Fayette County, has declined to comment.

Even though the audit report focused on Johnson's corruption, the village problems extend beyond that.

John Martin, who replaced Johnson as administrator in early 2016 amid promises to clean up the mess, was fired for giving unauthorized raises of about $49,000 to employees.

Changes to village laws have prevented similar problems, Burns said.

"It was horrendous that it was allowed to happen. But I feel very, very confident that we have things nailed down so tightly now."

Duties of the administrator, who was paid $ 60,000 annually, now are split between the fiscal officer and the mayor.

Fiscal oversight changes, including multiple signatures on checks and elimination of credit cards, have been made. Public records policy has been reviewed.

"We want everyone to know that there is nothing that is hidden," said Burns.