Lawsuit against ex-WTVP execs off - and on
Peoria Judge Timothy J. Cusack on Nov. 5 granted a motion to dismiss a lawsuit against former WTVP Director of Finance and Human Resources Linda McLaughin and the estate of the late WTVP CEO Lesley Matuszak because the Cincinnati Insurance Company’s claim “lacked specificity.”
Cusack also gave the company 30 days to amend its complaint.
The Cincinnati Insurance Company (CIC) is suing McLaughlin and Matuszak’s estate for $250,000 plus lawyers’ fees and costs tied to its settlement payment for WTVP’s financial losses stemming from an alleged misuse of funds, which Peoria police said was embezzlement.
“As WTVP’s head of the Finance Office, [McLaughlin] directly owed the duty to honestly perform her job,” CIC’s suit says. “In her capacity as head of the HR Department and the Finance Office, she is the person who made misrepresentations to the Board. McLaughlin knowingly presented false financial information to the Board, provided misleading financial statements during board meetings, and falsely certified the accuracy of board meeting minutes and financial documents when in fact said document concealed her fraudulent misappropriation of company funds.”
Filed in March, the suit also states, “As part of the conspiracy, defendant McLaughlin knowingly and intentionally participated in, facilitated, and directed the fraudulent actions carried out by defendant Matuszak. This conspiracy was aimed at deceiving WTVP’s board of directors, ultimately leading to the approval and reimbursement of fraudulent and unauthorized expenses.”
After board members eventually questioned spending, Matuszak committed suicide and McLaughlin resigned, and the station cut about 30% of its budget and laid off nine employees. Most members of the board of directors also quit, and an audited financial statement for the fiscal year ending June 30, 2023, showed an overall loss of more than $870,000.
The Peoria Police Department later found probable cause to charge Matuszak, but declined to file charges since she was dead. Although implicated, McLaughlin never faced charges and “probable cause has not been reached for her arrest, unless she is able to be communicated with,” according to the report from police, who declined to comment further.
However, McLaughlin’s lawyer, Philip O’Donnell of Peoria, said CIC’s claim is “seriously lacking in identified, concrete, factual allegations,” and last month noted a sheer absence of details, saying, “They haven’t said how she [McLaughlin] was enriched.”
O’Donnell also implied that the insurer must have done its own investigation, saying, “$250,000? Insurers don’t pay for no reason.”
Appearing on behalf of CIC, Christopher Hack, an associate with the Chicago law firm of Thompson, Brody and Kaplan, commented, ”We need discovery to get specifics.”
Two days later, The insurer’s lawyers issued a subpoena commanding the Peoria Police Dept. produce its investigation report, “any and all interviews and witness statements, as well as financial records” and other records related to the investigation of the alleged embezzlement of funds at WTVP.
Cusack scheduled a March 13 Case Management Conference on the case.
New development director starts at WTVP public TV
Audrey Kamm is the new chief development officer at WTVP.
The former regional adviser for development for the St. Jude Children’s Research Hospital, Kamm started on Nov. 10.
Her experience includes stints at the Midwest Food Bank and the Peoria Area Chamber of Commerce.
At WTVP, Kamm will lead fundraising efforts.\
Peoria County ordered to pay attorney for ex-Auditor $124,000 in fees and costs
Peoria Judge Stewart Umholtz on Oct. 16 directed Peoria County to pay attorney Justin Penn of the Hinshaw and Culbertson law firm an additional $124,531.41 in fees and costs stemming from his representation of former County Auditor Jessica Thomas.
Almost two years ago, Thomas’ case against the County was largely resolved after the 4th District of the Illinois Appellate Court ruled that Thomas had no right to finish her term after some 70% of voters eliminated the office in a 2022 referendum.
Left unresolved, however, was the amount of payment due to Penn, who’d been appointed as a special prosecutor in Thomas’ lawsuit against the County, filed in October of 2021.
In February of last year, Umholtz dissolved Thomas’ motion for a preliminary injunction and awarded some of Penn’s requested fees, but he denied other fees for his work on two counts in an amended complaint. Penn appealed Umholtz ruling, and the Illinois Appellate Court for the 4th District in September filed a decision that reversed that part of Umholtz’ 2024 ruling.
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