Grand Jury Investigating Fraud at Show-Me Institute, "Substantial Misuse of Funds"
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A conservative think tank often critical of the way public agencies and government manage money is having "substantial financial problems" of its own. Daily RFT has confirmed that a significant sum of money -- possibly hundreds of thousands of dollars -- is missing from the Show-Me Institute.
Crosby Kemper III, chairman of the institute, acknowledges that the Show-Me Institute is suffering a "substantial misuse of funds" that he categorizes as "almost certainly fraud."
Returning a call to Daily RFT this morning, Kemper says, "I've talked to our lawyer today, and the case is still in grand jury, so there's not a lot I can say at this point."
Kemper, the former chairman and CEO UMB Bank and current executive director of Kansas City Public Library, adds that the misuse of funds involved a rank employee at the Clayton-based institute.
"No director or senior staff member is involved," says Kemper. "I think some recovery is possible, but I can't get into specific amounts...I set up the management system that allowed it to happen and I failed to exercise the oversight I should have despite some warning signs that are now obvious retrospectively. We have corrected the problem and I am doing the due diligence that I used to do as CEO of a banking company and do everyday as CEO of a Library."
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| Rex Sinquefield |
Dave Truman, assistant prosecutor with St. Louis County, says his office has had the case for a few weeks, but has yet to issue charges against the individual.
Sources tell Daily RFT that the person behind the alleged embezzlement is a former manager with the firm who was let go in the last couple months.
Attempts to reach the former employee were unsuccessful. We are withholding the name until/when charges are filed.
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