CH Public Library Accuses Former Officials Of Mishandling $440K

CHICAGO HEIGHTS, IL — The Chicago Heights Public Library is planning to take two former officials to court and asking for a criminal investigation after an independent forensic audit revealed more than $440,000 in "mishandled funds," according to a news release.

According to the library, former director Kelley Nichols-Brown made thousands of dollars worth of credit card purchases, payments and petty cash transactions that appear to have been personal in nature. Former board President Lori Wilcox was tasked with overseeing Nichols-Brown, but did not hold monthly oversight meetings as required. The library says it will sue to get that money back, and current officials are calling on the Cook County State's Attorney's Office to investigate.

"A forensic accounting services report from an independent auditing firm, BKD CPAs & Advisors, has concluded that former Chicago Heights Library Board President Lori Wilcox and Library Director Kelley Nichols-Brown have allegedly mishandled over $400,000 in Library funds," said current board President Jamie Paicely in a statement. "Therefore, the library has a fiduciary responsibility to initiate both civil court action to recuperate unauthorized spending as well as make a formal referral to the Cook County State’s Attorney for a criminal investigation."

According to the library, the accounting firm’s 28-page report identified more than $440,000 of mishandled funds, including $93,000 of personal transactions and payments that Nichols-Brown authorized, $355 in petty cash transactions that appear to have benefited her personally, $39,130 of unapproved credit card purchases, and a payment of more than $307,577 that violated both library policy and Illinois state law.

For example, the report found two businesses owned by Nichols-Brown’s husband were being paid from library funds, the news release said. Supreme Martial Arts had been paid $8,200 since 2018 for instruction classes at the library, according to the release. The accounting firm noted in its report that monthly payments of $200 in 2018 had increased to $600 or $700 a month by 2019, without any apparent increase in class size, according to the news release.

Officials said Nichols-Brown also hired her husband’s janitorial company, Clay Custodian Services, in October 2019 for $22,200. According to records at the Illinois Secretary of State’s Office, Clay Custodian Services was incorporated at the same time the company was hired by the library in October 2019. The company is currently not in good standing with the State of Illinois and was terminated by the library in May 2020, according to the news release.

The report does not allege any mishandling of funds directly by Wilcox, but blames her for poor oversight. According to the accounting firm's report, Wilcox was not holding regular monthly meetings as required — only 3 meetings total were held in 2019 and no meetings at all were held in January or February 2020, according to the release.

Chicago Heights Mayor David Gonzalez chose not to reappoint Wilcox as board president in April. Paicely, whom Gonzalez appointed in 2019, was elected by the board as the new president and began an immediate review of her predecessor’s financial management, leading to her decision to contract with an outside firm for a forensic audit, according to the news release.