Chattanooga Electricians Involved in Payroll Fraud

News Summary

Three former electricians from Chattanooga’s Traffic Operations Division have been implicated in a payroll scandal, misappropriating over $79,000. Following an investigation, it was revealed that between January 2017 and December 2022, they falsified overtime records and made unsubstantiated claims of call-backs for traffic signal malfunctions. With significant deficiencies found in the city’s payroll processes, officials are now working to enhance oversight to prevent similar incidents in the future.

Chattanooga Electricians Caught in Payroll Scandal

In a shocking turn of events, three former electricians from Chattanooga’s Traffic Operations Division have been implicated in a scandal involving the misappropriation of over $79,000 from the city’s payroll. The alleged misconduct revolves around claims of unearned wages and benefits that were brought to light by an investigation led by the state’s Comptroller’s Office.

How Did This Happen?

The investigation revealed that from January 1, 2017, to December 31, 2022, the trio of employees engaged in practices such as falsifying overtime records and making unsubstantiated claims for call-backs to fix traffic signal malfunctions. One of the electricians received about $41,020.62 in unearned wages, while another collected around $25,158.38, and the third amassed $13,040.54 in benefit money without actually putting in the hours.

Understanding Call-Back Pay

The city’s Traffic Operations Division is responsible for maintaining critical infrastructure like traffic signals. Normally, employees who are called back to work outside of their regular hours can claim call-back pay. However, it appears that some were not following the city’s pay guidelines strictly, claiming hours they didn’t work.

The Investigation Timeline

Allegations against these electricians started surfacing back in May 2021, but the details of their misconduct didn’t land on the Comptroller’s desk until June 9, 2021. What’s more alarming is that despite numerous discussions about the need to report potential fraud, the allegations weren’t fully reported by the Office of Internal Audit (OIA) until June 2022. This is notably concerning as Tennessee state law requires prompt reporting—within five working days.

Inadequate Monitoring

During the investigation, it was exposed that phone logs and dispatch records did not corroborate the claimed overtime and call-back hours. There were significant issues with the internal controls and compliance operations concerning the city’s payroll processes. One glaring oversight was that GPS data from city vehicles assigned to these electricians was not kept due to a transition to a new tracking system.

Delays in Record Requests

Moreover, the Department of Technology Services did not provide essential call-back phone records until four months after they were requested. This delay hindered the investigation significantly. The auditors also found that not enough attention was given to reviewing and approving emergency overtime forms, leading to incomplete records that could have raised red flags.

What Lies Ahead for the City?

Interestingly, all three employees had either resigned or retired by the end of 2021, which raises questions about accountability. The investigation’s findings have been forwarded to multiple officials, including District Attorney Coty Wamp and Governor Bill Lee.

Moving Forward

City officials have acknowledged these significant deficiencies found during the inquiry and are now working toward rectifying the issues in the payroll system. As Chattanooga explores pathways to enhance its payroll oversight, one can hope these reforms will prevent any similar incidents in the future.

It serves as a reminder that transparency and adherence to guidelines are crucial in maintaining the trust of a community, especially when taxpayer money is at stake. Let’s keep an eye on how the city moves to strengthen its operations following this troubling revelation.

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Additional Resources

• Chattanoogan: Comptroller’s Report Says 3 City Employees Misused Funds
• Times Free Press: Report on Chattanooga Department of Transportation Misconduct
• News Channel 9: Former Chattanooga Employees Misused Nearly $80K
• Encyclopedia Britannica: Payroll Fraud
• WDEF: City Employee Suspended for Misappropriation of Funds