The Ohio Auditor of State released its final report investigating the $20 million fraud scheme at the Columbus Zoo that led to five convictions and a total of 15 years of prison time for the former employees.
Auditor Keith Faber said the investigation uncovered a culture of illegal perks that amounted to fraud, with former executives using zoo funds for vacations, concerts, sporting events and country club memberships. The former employees also remodeled zoo properties that were rented to family members below market rates.
The report details how the former employees spent the money. The report included details on more than $1.5 million on tickets for events like concerts by Kanye West, Taylor Swift and Beyonce and ticket packages to local games. Additionally, $109,000 went to family businesses, $117,000 covered country club expenses and $51,000 was spent on vehicles.
Investigators said they found no evidence that former Columbus Zoo director Jack Hanna was involved with the fraud. But, Faber said some things that were allowed while Hanna was in charge, like giving a contract to his son's company, wouldn't be allowed now because of new controls in place.
"We are confident today that the zoo has made the necessary changes to put this scheme behind them," he said.
Faber said other non-profit boards should learn from what happened at the zoo, and hold executives more accountable.
Current Columbus Zoo CEO Tom Schmid said the fraud is unlikely to happen again, with a more vigilant board and other controls now in place.
"We've implemented a new whistleblower program, tightened credit card and reimbursement rules, placed clear boundaries around executive authority when it comes to contracts and spending approval. We've also added layers of internal review, instituted dozens of new policies, procedures and financial controls," Schmid said.
Schmid said the zoo is entering a new era.
"And now with the release of this report from the Ohio Auditor, we are closing the chapter in this difficult period in our history. This has been a stark reminder of how the actions of a few can profoundly impact an entire institution," Schmid said.
Former Columbus Zoo CEO Tom Stalf was sentenced to seven years in prison for his role in the scheme. Former chief financial officer Greg Bell received a three-year sentence in August. Former marketing director Pete Fingerhut was sentenced to five years. Former director of purchasing Tracy Murnane was convicted of eight counts and was sentenced to 60 days in jail. Former purchasing coordinator Grant Bell was convicted of one count and sentenced to community service.
The Columbus Zoo and Aquarium has filed lawsuits against Stalf and Fingerhut. The suit filed in Delaware County seeks the foreclosures of their homes to help pay restitution.
All five have been ordered to repay a total of $1.7 million, according to Faber's office.
