BULLHEAD CITY, Ariz. – Board member and Treasurer of the Mohave County Airport Authority (MCAA) Linda Green presented to the Laughlin Bullhead Finance Committee Wednesday morning, Oct. 14, in a meeting held at the Laughlin/Bullhead International Airport, the financial condition of the airport. Reported were Green’s findings and concerns after a financial review was completed following former Director James Scheller being put on paid administrative leave.
Green reported that in the 14.5-month period she examined, there had been 29 transfers totaling $1,578,765 from various funds to another. Some of those funds were highly restricted and should not have been touched. She stated that Director James Scheller had transferred the funds to help sustain operations, primarily payroll, all without being brought to the MCAA Board for approval.
Green stated that Scheller had written a check for $12,000 to employee Laura Johnson,for severance pay without board approval. It was also discovered that Scheller had closed accounts at two banks the airport funds were in and had the balances transferred to his personal account.
Green stated that the banks were reluctant to work with her or even the second authorized signer on the accounts because Scheller had originally set up the accounts. It was reported that the investment account that he transferred to his personal account had just shy of $1 million in it at one point. Green said the general funds showed an operating loss of $1 million, a declined bank balance of $1.27 million.
Mohave County Sup. Rich Lettman, Dist. 2, asked if there was enough money to make payroll this week. Green assured him there was, thanks to a huge fuel sale last week.
Mohave County Manager David Strahl stated, “There is cause for action here folks, just so you know. (Scheller) acted under authority of his previous position when he was on administrative leave.”
The MCAA will hold their quarterly board meeting at 10 a.m. Wednesday, October 28, 1004 Hancock, Building 100, where a severance package, requested by Scheller, will be discussed.
