- Associated Press - Tuesday, December 29, 2015

WEST LIBERTY, Ky. (AP) - A state audit has concluded that hundreds of thousands of dollars in federal disaster aid are unaccounted for in Morgan County.

Outgoing state Auditor Adam Edelen’s report, released Monday, found evidence of “waste, fraud and abuse” in the aftermath of a 2012 tornado that devastated West Liberty, according to the Lexington Herald-Leader (https://bit.ly/1NMIQi2).

The audit accuses former Judge-Executive Tim Conley of abusing his power and the Fiscal Court to create a situation in which there was minimal oversight.

Conley, who pleaded guilty in 2014 to mail fraud in a scheme in which he took $130,000 in kickbacks from a contractor, declared a state of emergency in Morgan County after the March 2012 tornado.

The audit found the possibility of abuse was so high it couldn’t rely on the county’s financial records or even form an opinion about the county’s finances.



In response to the audit, Judge-Executive Stanley Franklin, who took office in January 2015, said he would “not sign any checks that are not accompanied by sufficient and appropriate supporting documentation.”

The audit will be referred to the state attorney general’s office, the FBI, the state Department of Military Affairs and the U.S. Department of Agriculture, a news release said.

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Information from: Lexington Herald-Leader, https://www.kentucky.com

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