By Phyllis Schaltenbrand
St. Charles County Developer Steve Groeper of Western Expansion Group told the First Capitol News a $10,000 donation his company made in January 2004 to the Heritage Residents Association was for the HRA to do with whatever they wanted. He did not direct that $5,000 of that amount was to go to the Citizens For Responsible Community, a political action committee headed by Carl Maus and Raymond Stone. “I gave the $10,000 to the Heritage Residents Association to do with what they wanted and absolutely did not direct that $5,000 of the money was to go to CFRC,” Groeper said. “I didn’t care what they did with the money.”
After the HRA received the $10,000 check from Groeper the board was told by it’s president at the time, Carl Maus, that only $5,000 was for HRA and the other $5,000 was to go to CFRC. Other board members resisted any payment to CFRC and refused to pay any money to CFRC. Maus was also the president of Citizens for Responsible Community at the time and still holds that office.
An internal fight developed over the funds, which resulted in $3,293.75 in legal fees for HRA. At a later meeting, that was not attended by several board members, a HRA check for $5,000 was issued to CFRC.
Maus did not run for re-election as president of HRA as he was moving to Heritage Trails, and into a new home. Two candidates representing Citizens for Responsible Community were defeated in their election attempts to join the HRA board. Maus was elected to the board in the 2005 elections as a representative from Heritage Trails. Two other candidates aligned with him in Citizens for Responsible Community were defeated in their attempts to join the HRA board.
An attorney hired by the HRA board, Joel Brett, investigated the matter and reported back to the board. He wrote the board that the $5,000 payment the board made to CFRC was apparently a misdirection of funds to avoid the appearance of CFRC accepting money from a developer, particularly since the purpose of CFRC was to prevent another developer from purchasing and developing property. He wrote the board the $5,000 should be returned to the HRA by CRFC and then perhaps returned to Groeper and his company, Western Expansion. The HRA attorney also advised the board that Maus being president of HRA at the same time he was president of CFRC was at the very least a conflict of interest and should have been disclosed to all members of the association (all residents) and not just the board members.
Other recommendations he made to the board were; hire an independent accounting firm to audit the HRA books for the past two to four years and to take bids for services and/or materials of any significant amount. He also believed that funneling the donation from Western Expansion Group through HRA to CFRC constitutes a violation of the Missouri Ethics statute as well as the rules and regulations promulgated by the Missouri Ethics Commission. In closing he wrote, “ I also firmly believe that the association had no authority to make this donation ($5,000 to CFRC). Clearly Mr. Maus’ dual roles and the commingling of funds for attorney’s fees and contributions, at the very least, gives the appearance of impropriety, and in my opinion was improper and illegal.”
In the July 30th edition of the First Capitol News we reported the Heritage Residents Association voted to refer information to the Internal Revenue Service (IRS) along with a request for a Criminal Investigation on the advice of their accountant.
We also reported the Missouri Ethics Commission notified the HRA sufficient evidence was found to refer their complaint against Carl Maus and the Citizens for Responsible Community to the Attorney General for further handling.
The HRA board recently hired a new accounting firm, Crowder Accounting St. Charles. Crowder told the HRA the way CMA (former accountant) reported the $10,000 donation from Groeper on the financial statement, presented HRA with a problem that must be corrected. Crowder recommended the Criminal Investigation Division of the Internal Revenue Service be contacted and request an investigation.
Frank Rosner, president of the HRA told the First Capitol News this action was being taken.
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