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Covington Suit Seeks Recovery Of Funds
The City of Covington is taking the fight to fired Finance Director Bob Due and wants it's money back.
Friday afternoon, the city filed a lawsuit naming Due, members of his family, accountants, software providers and banks in an effort to recover around 600-thousand dollars they claim he embezzled from the city.
Local 12's Joe Webb has been following the story.
The city isn't playing around. Friday they filed the lawsuit and got a restraining order to tie up Bob Due's assets and keep him from getting rid of them.
The suit also provides some specific details of how he did it and exactly how much they think he took. It's a massive stack of papers that is a flood of bad news for Bob Due, his family, his bankers and the accountants who audited the City of Covington. Due is not the only target. It names his wife, children, the estate of a deceased aunt, even the company that sold Covington the software he used to write phony checks.
Peter Koenig, City of Covington's Attorney:
"Breached its warranties and contracts with the City of Covington, negligently installed and maintained computer software system that allowed this systematic theft to take place."
That systematic theft is detailed in the lawsuit. An exhibit details how Due, from April of 2007 to February 2010, allegedly wrote 289-thousand dollars in checks to his aunt, Virginia Molique, who has since died. From September of 2010 to just ten days ago they list 300-thousand in checks Due allegedly wrote to his wife Janet Patterson and himself. The total ... a whopping $590,727.22. Koenig believes there is more.
"We are going to leave no stone unturned and fully recover all of the money the citizens of Covington have had stolen from them."
Friday afternoon, Koenig argued before Judge Gregory Bartlett for a restraining order...designed to keep Due from hiding any assets or selling them off. It was granted.
Desperate times call for desperate means and, unfortunately, we learned he attempted to take his own life yesterday. Somebody in that type of situation, you have no idea what they might do in their desperation. The biggest check written by bob due...according to the lawsuit...was one for 41-thousand he wrote to his aunt in 2008. All of the checks written since 2011 are under 10-thousand dollars.
We need to point out that Bob Due is the only person who has been charged with a crime.
The fact that these people are named in the lawsuit does not mean they were willing participants or even knew what was going on. This is a civil suit. It's all about the money and getting it back.
Thursday night, Covington city officials confirmed that Bob Due tried to commit suicide at his Independence home yesterday afternoon.
Friday in court, attorneys said he is in the midst of a 72-hour psychiatric evaluation. Due is set to be back in court on the criminal charges next Tuesday.