CIETC whistleblower testifies of warnings by agency executives
1:56 PM
Posted: Monday, April 14, 2008
DAVENPORT, Iowa (AP) -- A whistleblower testified Monday that he was repeatedly warned by officials of a troubled job training agency not to look into the agency's budget.
Kelly Taylor, a financial bureau chief for Iowa Workforce Development, took the stand against former executives of the now-defunct Central Iowa Employment and Training Consortium.
On trial are former CIETC chief accountant Karen Tesdell, former Iowa Workforce Development deputy director Jane Barto, and former CIETC board member Dan Albritton.
The former officials face various federal charges related to about $2 million in allegedly misspent government funds. Prosecutors said they were part of a conspiracy to pay executives huge salaries and bonuses and mislead government agencies that bankrolled CIETC.
Former CIETC CEO Ramona Cunningham was also indicted, but her trial was delayed after a mental competency hearing was ordered to be held in late May in her case. Her lawyer said she attempted suicide in October and isn't able to assist in her defense.
Taylor testified that Cunningham and Barto repeatedly tried to warn him against looking into a last-minute addition of $200,000 to CIETC's budget on June 20, 2005.
Taylor said Barto called him in October 2005 to tell him about Cunningham's concerns about an upcoming visit by state monitors.
"The other thing that Jane said was not to forget that CIETC had done us a favor by taking that $200,000," Taylor said.
Last week, jurors heard testimony that Barton authorized $200,000 in additional spending for CIETC at Cunningham's request.
A state audit report later found that CIETC received more than $368,000 in new money for salaries during the first half of 2005 alone.
Taylor testified that he believed his duties included examining financial transactions involving CIETC, including the additional $200,000. He said he told that to Mary Bowser, the Iowa Workforce Development worker who visited CIETC.
"I told her that when she went out to CIETC, I wanted her to look at every single dime of how the money got spent from June 30," Taylor said.
He said he helped Bowser review CIETC documents in November 2005 and reported excessive salaries to a federal agency. That led to a meeting with Barto and other IWD officials, Taylor said.
"She told me that I was to have no further contact with the Department of Labor," Taylor said.
Kelly Taylor, a financial bureau chief for Iowa Workforce Development, took the stand against former executives of the now-defunct Central Iowa Employment and Training Consortium.
On trial are former CIETC chief accountant Karen Tesdell, former Iowa Workforce Development deputy director Jane Barto, and former CIETC board member Dan Albritton.
The former officials face various federal charges related to about $2 million in allegedly misspent government funds. Prosecutors said they were part of a conspiracy to pay executives huge salaries and bonuses and mislead government agencies that bankrolled CIETC.
Former CIETC CEO Ramona Cunningham was also indicted, but her trial was delayed after a mental competency hearing was ordered to be held in late May in her case. Her lawyer said she attempted suicide in October and isn't able to assist in her defense.
Taylor testified that Cunningham and Barto repeatedly tried to warn him against looking into a last-minute addition of $200,000 to CIETC's budget on June 20, 2005.
Taylor said Barto called him in October 2005 to tell him about Cunningham's concerns about an upcoming visit by state monitors.
"The other thing that Jane said was not to forget that CIETC had done us a favor by taking that $200,000," Taylor said.
Last week, jurors heard testimony that Barton authorized $200,000 in additional spending for CIETC at Cunningham's request.
A state audit report later found that CIETC received more than $368,000 in new money for salaries during the first half of 2005 alone.
Taylor testified that he believed his duties included examining financial transactions involving CIETC, including the additional $200,000. He said he told that to Mary Bowser, the Iowa Workforce Development worker who visited CIETC.
"I told her that when she went out to CIETC, I wanted her to look at every single dime of how the money got spent from June 30," Taylor said.
He said he helped Bowser review CIETC documents in November 2005 and reported excessive salaries to a federal agency. That led to a meeting with Barto and other IWD officials, Taylor said.
"She told me that I was to have no further contact with the Department of Labor," Taylor said.
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