Police probe sees proof of embezzlement, but closes case against the late CEO

The first of at least three investigations into suspected financial wrongdoing at WTVP-TV 47 shows likely embezzlement and forgery in recent years, but after a 10-month inquiry, the Peoria Police Department requested the case be closed at this time, according to an Aug. 6 police report.

Their recommendation conceded that there was probable cause for charges against former CEO Lesley Matuszak, but she is dead. Regarding a second person who WTVP officials in January named as possibly involved – former Finance and Human Resources Director Lin McLaughlin – “probable cause has not been reached for her arrest unless she is able to be communicated with,” police said.

Heavily redacted, Peoria Police Department (PPD) criminal reports, obtained by the Community Word through a Freedom of Information Act request, say the PPD probe started last Nov. 7 after an audit showed “some problems with the answers provided on what should be some fairly simple questions,” said PPD, which noted it talked that day with four unnamed board members, legal counsel and others.

In a joint statement, current WTVP Board Chair John Wieland and CEO Jenn Gordon said, “This has been a sad chapter in the life of WTVP. Someone lost their life; friends and a family are grieving. We feel deeply for them, as well as for the members, viewers and donors of WTVP who have been impacted. We appreciate the work of the Peoria Police Department. We hope this report provides some closure for the community.” The community wasn’t informed about financial questions at WTVP although station leaders were alerted in July 2023 by the National Education Telecommunication Association that WTVP investment funds had been moved. The police reports don’t explain why it took the previous board more than two months to ask for a meeting with Matuszak and McLaughlin to answer questions, 12 more days to announce problems at a public meeting, six additikonal weeks to involve the police, and another month for years of credit-card statements to be provided to investigators.

Before the proposed meeting with Matuscaz and McLaughlin could be held, McLaughlin resigned on Sept.

19, Matuszak resigned on Sept. 27 and then she committed suicide the next day.

After reviewing a WTVP credit-card statement with what appeared to be unusual purchases, some unnamed male responsible for “signing off on invoices after they processed …noticed some questionable significant charges from Saks Fifth Avenue and a lot of Michigan Avenue-style clothes that are not appropriate to be on the credit card statement,” PPD reported.

Last October, ex-board chair Andrew Rand said there had been “questionable, improper or unauthorized” spending, and the board cut $1.5 million from its budget, laid off nine employees and shut down its Peoria magazine (which had contributed to an $870,000 shortfall, according to an internal audit released later). The credit-card statements given to Peoria Police in December totaled some 4,000 pages, and police eventually reviewed 335 pages – almost 10% of which “appeared to be conspicuous, as it did not resemble expenses related to the regular operation of WTVP,” PPD said, “ – $46,796.36.”

Meanwhile, the Corporation for Public Broadcasting’s investigation is an audit by its inspector general, which was expected last month but has not been released. The CPB is withholding grant money to WTVP pending results. Also, the Illinois Attorney General’s investigation is ongoing, that office confirmed to the Community Word.

As for Channel 47’s fiscal procedures, Gordon and Wieland commented, “Internally, we have implemented financial controls and accounting practices to ensure that fiscal responsibility and oversight is at the core of our operations. Mark Lasswell was promoted to Chief Compliance Officer to assure we comply with all state and federal requirements. As we move forward, we are focusing on building a very bright future where WTVP can impact and serve central Illinois for many years to come.”

 

Police found four areas of concern

Unauthorized liquidation of funds: Without authorization, Matuszak had $320,000 transferred from WTVP’s investment account with Cypress Asset Management to the station’s checking account, and used another $100,000 from its line of credit at PNC Bank, “believed to be done to hide the misappropriation of funds,” PPD said. “The Director of Finance and Human Relations [then McLaughlin] … was approving a lot of the fraudulent activity, either through incompetence or personal gain.”    Credit card: A list of what the station considered improper transactions from November 2019 to September 2023 totaled $375,017, and the 335 pages of documents police were able to examine “made up a total of $731,665.89 worth of submitted expenses by Lesley,” PPD said. Some are assumed to have been legitimate. “There appears to be no questioning of the obvious personal expenses by Lesley [by those responsible to do so],” police said. “It was all coded as WTVP operational expenses.”    Besides purchases at Saks, acquisitions occurred at Bergdorf Goodman, which specializes in expensive brands such as Gucci and Prada. Other unusual charges included payments to seven insurance companies for what looks to be personal coverage; a donation to state Rep. Ryan Spain (prohibited by law for nonprofits); travel, including golf outings; car expenses beyond Matuszak’s $500 monthly car stipend from her contract with WTVP; and paying a phone bill for the Boys and Girls Club of Greater Peoria. (Matuszak and McLaughlin had worked together for about 18 years and had been employed at the Boys and Girls Club.)   Questionable reimbursements: Among some $500,000 in reimbursements the station made to Matuszak over almost four years, some without documentation, were her membership dues to the Creve Coeur Club and the Peoria Country Club.    Luxury auctions: Three such purported fundraisers were held in October 2020, November 2021 and November 2022, and “supposedly sold at that auction,” PPD said, were “higher-end” items such as two jeweled tennis bracelets costing $10,000 and $16,000 and an unidentified $30,000 purchase. Police said items totaling $88,285.01 included goods from Dior ($14,497.88), Brom’s Furs & Fashions ($36,000) and Potter & Andeson ($17,101).    “The money never came in to the bank account, nor was it recorded as revenue,” PPD said.    Further, the top three auction donors received nothing, said PPD, adding, the goods “have yet to be located.” One donor denied signing a $100,000 invoice from the auction, “indicating Lesley had forged [a] signature for receipt of the itemized jewelry,” PPD said.