July 23, 2009
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News: Kentucky League Suspends CC Use
Allegations that top members of the Kentucky League of Cities abused the leagues credit cards has lead to a change in policy that will prohibit members from using the leagues cards. Three top member of the agency allegedly racked up over $300,000 over the past three years in personal charges, as well as at a Las Vegas strip club. The Herald-Leader sparked a state audit after reporting on the credit card abuse. State Auditor Crit Luallen is conducting the audit that is expected to take several months to complete. Meanwhile, the League's Executive Director, Sylvia Lovely, appeared before a meeting of the Insurance Board, recommending that credit card privileges be suspended from her staff including Deputy Director Neil Hackworth, William Hamilton, Director of Insurance Services; and General Counsel Temple Juett. The board voted in favor of suspending all the league's cards including Lovely's. Members of the league will now be required to pay expenses up front and submit documentation for reimbursement.
The Diamond Cabaret strip club credit card charges stem from a visit made by William Hamilton during a 2006 meeting held in Las Vegas. Others who accompanied Hamilton to the Diamond Cabaret were Hackworth; Mike Goff, the League's Administrator of Product Development; and James Johnston, President of Collins & Co., insurance adjuster and appraiser. Hamilton and Hackworth charged nearly $3,500 to the League's credit cards during that five-day trip. According to the league, Hamilton reimbursed the agency for the strip club charges this past spring nearly three years later. League officials deny knowing that the Diamond Cabaret was a strip club; however, photos on the club's website clearly identify it as a nude establishment.
The Executive Board and the Insurance Board who jointly oversee the activities of the League, have been communicated regularly since the credit card abuse was discovered in clarifying and instituting new spending policies. Connie Lawson, Executive Board Chairwoman and Mayor of Richmond, convened a committee to look into the League's policies and practices. They are expected to release their findings sometime next month.