Thu, 02 Sep 2010 08:29:00
Probe Reveals Spending Habits Of Former Chamber President
Last week former Canton Chamber of Commerce President Rona Watson was arrested on warrants issued by the Canton Police Department following a three-month investigation.
In a 27-page arrest warrant affidavit it outlines purchases CPD Detective Michael King found to have been made by Watson using the Canton Chamber of Commerce credit card over the five-year period Watson served as chamber president.
Purchases included clothing, makeup, grocery items, various web based dating service sites over a two-year period, jewelry, horse supplies such as tack and medicine, membership dues to horse associations, horse training services, personal doctor visits, and $4,438.48 fuel purchases.
According to the affidavit King and former board member “(Amy) Mattingly went through each of the charges on a line by line basis. Mattingly verified that each of the charges were not related to any chamber of commerce business and that the chamber had never received the items purchased.”
Mattingly advised that the fuel purchases were not authorized and she advised that the chamber bylaws required Watson submit a travel expense report for any reimbursement of travel expenses.”
Also, according to the affidavit it stated that “…Watson admitted using the card for personal purchases, but stated that she couldn’t owe more than $2,000 to the chamber.”
A total of $16,580.49 in fraudulent charges were made to the chamber credit card over the five-year period, according to King’s submitted affidavit.
Watson’s arrest charges included theft $1,500/$20,000 and misapplication of fiduciary property $1,500/$20,000.
The additional charges come in a separate three-page affidavit where King found that Watson had taken checks made out to the chamber of commerce and deposited them into her personal checking account.
The checks were in the amounts of $2,500, $75, $150, and $75. All of these checks were deposited during May of this year, according to King’s report.
According to the affidavit, Watson advised the chamber board on February 12, that she had been contacted by the Internal Revenue Service (IRS) regarding back taxes owed by the chamber and that she was taking care of the issue.
Then on April 19, the affidavit states that “the IRS levied the chamber’s bank account, effectively preventing the chamber from performing business.”
The affidavit went on to state that “the board then learned that Watson had been endorsing checks made payable to the chamber and had been depositing them into her personal account. Watson informed the board that she had done this so she could continue paying chamber bills and take care of other chamber business.”
According to the affidavit board members stated that Watson was not given board approval to take that action.
Watson resigned from the chamber May 19, however, the chamber did not announce her resignation to the Herald until early June.
Then in July a meeting was opened to businesses, organizations and individuals who were members of the chamber to discuss the reorganization efforts.
During that meeting it was revealed to dues paying members of the chamber that due to “poor management” the chamber had been dissolved and that there were IRS issues.
Also, during that meeting it was revealed that due to the IRS issues, and that upon the advice of the IRS, the chamber had to close.
Although ledgers were kept of transactions at the chamber, there were no audits of the books.
During a second meeting with the former dues paying chamber members, the fate of the business membership and promotions were discussed, and it was decided by those in attendance that they were in favor of moving forward with forming a new chamber.
An organizational committee was formed and since that time have been meeting in order to develop a new chamber.
In a 27-page arrest warrant affidavit it outlines purchases CPD Detective Michael King found to have been made by Watson using the Canton Chamber of Commerce credit card over the five-year period Watson served as chamber president.
Purchases included clothing, makeup, grocery items, various web based dating service sites over a two-year period, jewelry, horse supplies such as tack and medicine, membership dues to horse associations, horse training services, personal doctor visits, and $4,438.48 fuel purchases.
According to the affidavit King and former board member “(Amy) Mattingly went through each of the charges on a line by line basis. Mattingly verified that each of the charges were not related to any chamber of commerce business and that the chamber had never received the items purchased.”
Mattingly advised that the fuel purchases were not authorized and she advised that the chamber bylaws required Watson submit a travel expense report for any reimbursement of travel expenses.”
Also, according to the affidavit it stated that “…Watson admitted using the card for personal purchases, but stated that she couldn’t owe more than $2,000 to the chamber.”
A total of $16,580.49 in fraudulent charges were made to the chamber credit card over the five-year period, according to King’s submitted affidavit.
Watson’s arrest charges included theft $1,500/$20,000 and misapplication of fiduciary property $1,500/$20,000.
The additional charges come in a separate three-page affidavit where King found that Watson had taken checks made out to the chamber of commerce and deposited them into her personal checking account.
The checks were in the amounts of $2,500, $75, $150, and $75. All of these checks were deposited during May of this year, according to King’s report.
According to the affidavit, Watson advised the chamber board on February 12, that she had been contacted by the Internal Revenue Service (IRS) regarding back taxes owed by the chamber and that she was taking care of the issue.
Then on April 19, the affidavit states that “the IRS levied the chamber’s bank account, effectively preventing the chamber from performing business.”
The affidavit went on to state that “the board then learned that Watson had been endorsing checks made payable to the chamber and had been depositing them into her personal account. Watson informed the board that she had done this so she could continue paying chamber bills and take care of other chamber business.”
According to the affidavit board members stated that Watson was not given board approval to take that action.
Watson resigned from the chamber May 19, however, the chamber did not announce her resignation to the Herald until early June.
Then in July a meeting was opened to businesses, organizations and individuals who were members of the chamber to discuss the reorganization efforts.
During that meeting it was revealed to dues paying members of the chamber that due to “poor management” the chamber had been dissolved and that there were IRS issues.
Also, during that meeting it was revealed that due to the IRS issues, and that upon the advice of the IRS, the chamber had to close.
Although ledgers were kept of transactions at the chamber, there were no audits of the books.
During a second meeting with the former dues paying chamber members, the fate of the business membership and promotions were discussed, and it was decided by those in attendance that they were in favor of moving forward with forming a new chamber.
An organizational committee was formed and since that time have been meeting in order to develop a new chamber.