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Auditors link former Webster City Chamber part-timer to $263,000 worth of improper spending

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July 4th, 2019 by Ric Hanson

(Radio Iowa) — A special investigation by the state auditor’s office indicates a former part-timer who worked for the Webster City Chamber of Commerce was responsible for 263-thousand dollars worth of payments that were either improper or lacked proper documentation. Leah Mulholland was a financial and administrative assistant for the Webster City Chamber of Commerce. Auditors report she overpaid herself by 190-thousand dollars over a four-and-a-half year period. Auditors flagged another 35-thousand dollars worth of spending to cover things like what auditors believe were Mulholland’s cell phone bills, the purchase of a sex toy and 27-hundred dollars worth of hotel bills in Webster City. The auditor’s report also mentions improper spending at a Webster City hair salon and for food and meals at restaurants.

According to the auditors’ report, Webster City Chamber of Commerce officials “did not provide sufficient oversight of the Chamber’s financial transactions.” The chamber’s board of directors has released a written statement, indicating “all recommendations” outlined in the auditors’ report already “have been implemented.” The statement indicates this is an “ongoing criminal case” and goes on to say the “chamber board and staff are supporting and cooperating with the county attorney, the Iowa Division of Criminal Investigation, and Iowa attorney general’s office.”