UPDATE: Boone County loses $46,000 in apparent fraud scheme

1 year 6 months 3 weeks ago Thursday, February 01 2018 Feb 1, 2018 Thursday, February 01, 2018 4:35:00 PM CST February 01, 2018 in News
By: Steve Lambson, News Content Manager and Claire Kopsky, KOMU 8 News Reporter
loading

COLUMBIA - Boone County is more than $46,000 lighter after losing the money in an apparent fraud scheme.

According to documents from the county clerk's office, on October 31, the county treasurer received correspondence requesting an update to banking information from Emery Sapp and Sons, Inc., a Columbia-based construction company. The information turned out to be fraudulent.

On December 4, before the fraud was discovered, the county transferred $46,231.77 to the updated account information to pay for services rendered by Emery Sapp and Sons.  On December 12, the county learned the money had gone to a fraudulent account.

The fraud occurred using an electronic payment system called Automated Clearing House (ACH). 

Boone County Treasurer Tom Darrough said, "The bottom line is any electronic payments that in this case electronic funds transfer anything that isn’t a paper check, anytime we’re using software, automation to make a payment it obviously requires banking information among other things. And so a document came in reporting to be new banking information for Emery Sapp and Sons." 

Later correspondence between county officials indicated "there is no basis for expecting recovery of assets at this time." To compensate for the loss, the county says "funding will need to be transferred from the Emergency Appropriation to Non-Departmental, and we will write-off the loss accordingly."

According to the county, law enforcement are investigating the situation.

Darrough said he has reason to believe the Boone County Sheriff's Department is making significant progress. 

"The conversations I’ve had with investigators are progress is being made, information has been obtained, a lot of it, and at some point maybe that’s all going to be available."

Darrough said the county has already enhanced protection against fraud.

"We’ve enhanced it to how we validate information. It isn’t as simple as one person can just attempt to validate it," said Darrough. "It takes a minimum of two people within this office to validate information...we’re checking and balancing each other and validating information.”

Darrough said tax payers should rest assured taxes will not change because of this fraud. 

"There will absolutely not be a new tax to cover for this money or any enhanced tax or increased tax," he said. "These funds came out of an ‘emergency fund.'"

More News

Grid
List
COLUMBIA - After five years of a growing business, Peggy Jean's Pies is moving to a new location. With... More >>
14 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 8:05:00 PM CDT August 24, 2019 in News
ASHLAND - After Gov. Mike Parson called for the state legislature to convene in a special session to discuss a... More >>
16 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 6:46:00 PM CDT August 24, 2019 in News
INDIANAPOLIS (AP) — A defense attorney is seeking a psychiatric exam for the semi driver charged with causing a highway... More >>
18 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 4:06:00 PM CDT August 24, 2019 in News
LAKE OF THE OZARKS — Missouri State Highway Patrol divers recovered the body of a missing man Saturday night from... More >>
19 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 3:50:00 PM CDT August 24, 2019 in News
DES MOINES, Iowa (AP) — An Iowa-based grocery chain says it's aware of reports that hacked customer account information is... More >>
20 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 2:23:00 PM CDT August 24, 2019 in News
COLUMBIA - Columbia police are investigating a crash on I-70 at Stadium Boulevard on Saturday afternoon that left one person... More >>
21 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 1:50:00 PM CDT August 24, 2019 in News
COLUMBIA - Participants raised $83,988 for the Columbia Walk to Defeat ALS on Saturday. In its 12th year, the... More >>
21 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 1:48:00 PM CDT August 24, 2019 in News
COLUMBIA - A butterfly mural has appeared in a Columbia alley and has become a new photo destination. Children's... More >>
23 hours ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 11:35:00 AM CDT August 24, 2019 in News
COLUMBIA, Mo. (AP) — Four years after student protesters denouncing a racist campus culture and demanding a more diverse faculty... More >>
1 day ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 10:26:00 AM CDT August 24, 2019 in News
ST. LOUIS (AP) — Police say an 8-year-old girl has been killed and three others injured in a shooting near... More >>
1 day ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 10:12:00 AM CDT August 24, 2019 in News
JEFFERSON CITY (AP)— Two former state lawmakers have been appointed to the Missouri commission that regulates casinos, fantasy sports... More >>
1 day ago Saturday, August 24 2019 Aug 24, 2019 Saturday, August 24, 2019 4:35:00 AM CDT August 24, 2019 in News
ST. LOUIS (AP) — St. Louis police and the U.S. Marshals Service have found and taken into custody two people... More >>
1 day ago Friday, August 23 2019 Aug 23, 2019 Friday, August 23, 2019 7:22:00 PM CDT August 23, 2019 in News
JEFFERSON CITY - A scare over a recent Facebook threat has a neighborhood rethinking the safety of their children. ... More >>
1 day ago Friday, August 23 2019 Aug 23, 2019 Friday, August 23, 2019 3:43:00 PM CDT August 23, 2019 in News
COLUMBIA - Forty-five cats, two birds, and three dogs are currently being housed at the Central Humane Society after a... More >>
1 day ago Friday, August 23 2019 Aug 23, 2019 Friday, August 23, 2019 3:36:00 PM CDT August 23, 2019 in News
FULTON – Students at Westminster College are getting some high tech help from the school: free iPads and Apple Pencils.... More >>
1 day ago Friday, August 23 2019 Aug 23, 2019 Friday, August 23, 2019 2:48:00 PM CDT August 23, 2019 in News
COLUMBIA- People in Boone and Callaway Counties have been receiving calls from people saying they need to pay money for... More >>
1 day ago Friday, August 23 2019 Aug 23, 2019 Friday, August 23, 2019 2:31:00 PM CDT August 23, 2019 in News
COLUMBIA - A tweet with video showing what appears to someone throwing something at a downtown church prompted police to... More >>
1 day ago Friday, August 23 2019 Aug 23, 2019 Friday, August 23, 2019 2:18:00 PM CDT August 23, 2019 in News
JEFFERSON CITY- Gov. Mike Parson tweeted about a big campaign announcement on his personal Twitter account Friday. ... More >>
1 day ago Friday, August 23 2019 Aug 23, 2019 Friday, August 23, 2019 1:19:00 PM CDT August 23, 2019 in News
Columbia, MO
Broken Clouds 68°
11am 72°
12pm 75°
1pm 76°
2pm 77°