Centerton police chief and captain returned to duty

Centerton Police Department
Centerton Police Department

CENTERTON -- A special prosecutor cleared two Centerton police officials Tuesday of any state crimes, but referred some of the investigation to federal authorities.

Jack McQuary, the special prosecutor, noted possible issues involving Police Chief Cody Harper and Capt. Kristopher Arthur, who were paid overtime money out of federal grant money. The two are salaried employees and don't qualify for overtime, the letter said.

An internal audit of the department by retired state auditor David Williams noted the two received $18,932 total in overtime. At least $14,179 of that was from the federal grant program, according to a report from the state Legislative Joint Auditing Committee.

McQuary told Benton County Circuit Judge Robin Green in a letter Tuesday he will not seek any charges against the pair, who've been on paid administrative leave since May 2018. McQuary was appointed to the case after Benton County Prosecutor Nathan Smith recused.

Harper and Arthur had been suspended since last May.

The Centerton City Council met in a special meeting Tuesday night focused on Harper and Arthur.

"We have been through 11 months of hell," Councilman Keith Higginbotham said. "For what? Nothing."

Higginbotham recommended the mayor return the pair to duty. Council members Robin Reed and Josie Reed agreed with Higginbotham's recommendation.

Council members Darren Warren and Misty Elam were against returning Harper and Arthur to their posts.

However, the deciding vote was left with Mayor Bill Edwards. He voted to reinstate Harper and Arthur.

"As far as I am concerned, you can come to work tomorrow," Edwards said.

The Arkansas State Police suspended Centerton police from the federal Selective Traffic Enforcement Projects program in July 2018. Law enforcement agencies receive federal money for officers working overtime to enforce certain laws.

Brian Rabal, Centerton's city attorney, said the city reported the payments to Harper and Arthur to the State Police.

An audit found at least $14,000 total was paid in overtime to Harper and Arthur, but the STEP money must be used in accordance with the local policy concerning overtime, McQuary's letter said, citing federal guidelines.

No salaried employees in the Centerton Police Department were eligible for overtime or compensatory time at the initiation of the program, but the investigation revealed the city authorized Harper and Arthur to work overtime on the projects. The pair receiving overtime may be a violation of federal guidelines, according to the letter.

Edwards signed off allowing Harper and Arthur to receive overtime pay from the STEP program, so McQuary said it isn't a criminal matter for him to handle, but an issue between the city and federal authorities. McQuary said the issue has been referred to federal authorities.

Bill Sadler, a spokesman for the State Police, said Centerton was suspended from STEP participation about 10 months ago and the suspension remains in effect.

Harper said he checked with the STEP office and was told he and Arthur were eligible to work STEP. Arthur said in his response he was authorized to work and receive STEP overtime by Edwards and Harper.

Warren questioned whether Harper and Arthur actually worked the overtime hours., citing Williams' notes, which said the overtime was paid close to times Harper and Arthur were on hunting trips and Christmas.

The Joint Legislative Audit report also concerned credit card purchases by the pair.

Legislative Audit flagged what it called questionable purchases. Those included items purchased on personal credit cards that were submitted for reimbursement; purchases sent to their private homes; use of the city credit cards for nonbusiness items that they later reimbursed; purchases of food without overnight travel; and gift card purchases.

For Harper, the questionable purchases from Jan. 1, 2016, to May 16, 2018, totaled $22,842; for Arthur, $7,020, according to Legislative Audit.

Harper said he used his personal credit card because sometimes his city-issued card did not work.

Harper and Arthur were fired in May 2018, but quickly rehired and placed on administrative leave with pay. Harper makes $67,871 per year, and Arthur's salary is $60,373, according to Brian Rabal, city attorney.

The city hired Williams to look at the finances of the Police Department and its policies and procedures, according to documents from the city.

Williams pointed out concerns to the city in his audit. He noted Harper was overpaid $7,208 in overtime and Arthur received $7,397 in overpaid overtime.

The Police Department didn't maintain appropriate inventories on firearms, explosive launchers, munitions, ammunition, optics, radios or information tech, according to Williams' notes. Williams also noted weapons were regularly traded for new weapons without the mayor's approval.

Another issue in the audit pointed out the city purchased from August 2016 to April 2018 items, including ammunition and tactical gear, costing $9,109 from a vendor not charging sales tax and not registered with the Secretary of State. In addition, it appears the vendor didn't have a business location other than a residence and submitted invoices in the same format as those submitted by Arthur for expense reimbursements.

The invoices were marked to be held for pickup and Arthur picked up the payments. Arthur identified the vendor as Ed Roso.

The pair said at Tuesday's meeting they were innocent of wrongdoing, but Harper did admit to using a city-owned scope on his personal rifle when he went hog hunting in Texas.

McQuary, Williams and Legislative Audit noted the city needed to implement standard checks and balances on purchases.

NW News on 05/01/2019

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