FBI may be involved with disarray at WTVP

As widely reported locally, board members from the embattled WTVP-TV 47 have filed a Peoria Police report about financial irregularities at the public TV station, filed an “employee theft” claim with its insurer, and is being investigated by Illinois Attorney General Kwame Raoul’s office.

But the developing situation also may include the FBI, and a few details of what board chairman Andrew Rand called “questionable, improper and unauthorized” expenditures are being alleged by someone who’s worked at the station and shared concerns on the condition no name be used to avoid retaliation.

WTVP’s board disclosed limited information about questionable spending days after WTVP CEO Lesley Matuszak resigned and committed suicide in late September. Finance and human resources director Lin McLaughlin also is no longer with the station.

Five months before, WTVP/Illinois Valley Public Telecommunication Corporation’s federal “tax return … provided to members of the board of directors” reported the previous year had contributions and grants down $303,625, and expenses up $524,322.

Rand announced cuts of some $1.5 million, or 30% of WTVP’s budget.

One of nine people laid off as part of the board’s slashing expenses posed questions authorities may investigate. Speaking on the condition no name be used, the former WTVP employee claimed:

* WTVP’s board apparently no longer has a nominating committee nor a finance committee, seemingly further consolidating executive control of the operation, and

* it’s not been disclosed what person(s) signed off on financial reports.

The Attorney General’s office, which has the power to dissolve boards of nonprofits if the state finds wrongdoing, is anticipated to focus on misuse of funds.

The source said that someone may have kept “a second set of books” noting payments for personal clothing and travel for Matuszak, which investigators could explore, and that fund-raising auctions have raised far less than earlier years, which insiders say could stem from the station buying “luxury” items instead of using donated goods and services, and aiming for wealthy supporters instead of everyday viewers.

For example, WTVP in June held an “Evening with Cole Hauser,” the actor from TV’s “Yellowstone” (which doesn’t air on public TV). Admission was $5,000.

Also, in recent years, management’s de-emphasizing community involvement resulted in far fewer volunteers from the area.

The FBI received a citizen’s recommendation to examine the station’s operation, and the agency asked whether elected officials were involved. Three board members were.

Filing a police report could indicate that the board seeks to distance itself of typical board responsibilities by blaming others.

Meanwhile, the station has requested continued funding from the Corporation for Public Broadcasting, a private but federally funded organization that’s expected to probe what happened and WTVP board’s response. However, a 2022 appeal to the CPB Inspector General to look into WTVP’s operation was acknowledged as received, but action, if any, was never shared.

Another long-time supporter who commented but insisted on anonymity said, “WTVP is an institution that deserves better governance.”