Table of Contents

Investigation Report I. Introduction II. . Issues Developed by Investigation III. Witnesses Interviewed IV. Documents Reviewed V. Factual Findings VI. Legal Issues and Council Options Addendum !age " !age " !ages "#$ !ages $#% !ages %#&% !ages &'#$( !age $"

I II
I. Introduction.
Attorney )*omas +. Loraine was *ired on or about October ",- &("$- to per.orm a critical investigation by t*e City o. /oplin. Reasonable e..ort was to be made to complete t*e investigation by December $"- &("$. As o. December $"- &("$ all investigative interviews were complete under oat* o. '" witnesses. 0undreds o. pages o. +1*ibits were submitted and reviewed. A list o. t*e +1*ibits is contained in t*is report in Attac*ment A 2LI3) OF ALL +40I5I)367 *ereto t*ose documents in total are retained under separate cover. D. Issues developed bv investigation AI. )*e conduct o. 8ayor or !ro )em 3cearce involving lease o. a building to an individual7 8r. 9en Lovett- later convicted o.:boo;ma;ing:. A&< )*e .acts and circumstances surrounding t*e release o. in.ormation related to conduct o. 8r. 3cearce including- but not limited to a *and written :note: in 8r. Ro*r=s *andwriting. 5. )*e .acts- circumstances- et*ical considerations- et*ical considerations surrounding Council 8ember Woolston wit* C*arlie 9ue*n>Four 3tate 0omes- its subsidiaries- related entities- and t*e City=s 8aster Developer- Wallace 5a??ali- wit* respect to purc*ase- sale- or leasing o. real estate .or current or .uture developments. ill. Witnesses interviewed )*e .ollowing witnesses were interviewed in t*e .ollowing order. Witnesses were @uestioned and answers recorded be.ore a certi.ied legal court reporter under oat*. In t*e case o. City employees- t*e Aarrity Warning was received and waived signed by a document. At all times discussed during t*e interview- City 8anager Ro*r- City Attorney 0ead- and bot* Council 8embers 3cearce and Woolston were empowered in t*e positions t*ey presently *old .or t*e City o. /oplin. /O!LIB CRI)ICAL IBV+3)IAA)IOB WI)B+33 LI3)

Bovember '- &("$5rian W. 0ead 8ar;Ro*r 5arbara 0ogelin Lane Roberts February $-&("%
!age "

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November 6,2013William 3cearce Leslie 0aase 8i;e Woolston Dan !e;are; C*ris Cotten C*arles 9ue*n 5en?amin Rosenberg November 7,20138elodee Colbert#9een 5arbara 0ogelin Aary 3*aw /ac; B. Aolden 5rian 0ead November 14, 2013/im West Bancy 8orton David Allgood 8orris AlaCe Alis*a and Dustin 5rigance Daniel /o*nson November 1 , 2013 Aary 3*aw Ron Darby 8itc*ell D. Randles David 0ertCberg Aary 5o1 /ac; 3c*aller 8ic*ael 3eibert November 1!,2013Leslie 0aase /enni.er 8c9eoug* Randy 5ell /acob 3;ouby "ebr#ar$ 3,2014
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Bovember &(- &("$Ric*ard Russell C*arles 3orenson !*il 3tinnett 0arold Lee 8cCoy Aary Duncan Leslie 0aase 3teve Curry - Dave Lewis Vic;i Coots #i

December %-&("$/erry Calvin )im !ar;er December '- &("$ C*arles 0artley 5ec;y# 5rill#!inson December ",- &("$Lynn Onstot 3teven Cope )im !ar;er Dana and William !ar;er /anuary &D-&("% 8ar;Ro*r 8i;e Woolston IV. Documents reviewed A. )*e documents listed on Attac*ment A 2list o. +1*ibits6 were eit*er volunteered by t*e above named witness- or re@uested .rom t*e witness by t*e Investigator. 5. Attac*ment 5 2under separate cover6 consists o. t*e te1ts o. all municipal and state laws reviewed by t*e Investigator< ". )*e /oplin City C*arter- Art. II February $- &("% !age $

&. 3ections EE.D&(- "('.%'%- "('.%,(- "('.%,$- and $'$.(F( o. t*e Revised 3tatutes o. 8issouri. $. City o. /oplin !urc*asing and !rocurement !olicies and !rocedures # e..ective April "E- "EEE. C. Attac*ment C is a copy o. 8r. Aenesio=s re@uest .or in.ormation .rom t*e F5I.

v.

Factual Findin&s A. 8r. 3cearce et*ical and legal issues ". Aambling )o begin t*is in@uiry- I interviewed 8r. 3cearce. 8r. 3cearce attended t*e interview wit* *is attorney- 8r. Aenisio. I e1plained to t*e Attorney t*at I would not allow interruption or ob?ections during my @uestioning. 8r. Aenisio agreed to t*e terms and complied. 8r. 3cearce admitted t*at *e *ad answered inart.ully as;ed @uestions by t*e newspaper reportergiving coy responses- and not elucidating omissions in t*e dialogue. 0is comment to me was t*at *e was under no oat* to answer reporters completely. 8r. 3cearce admitted t*at s*ortly a.ter t*e rental o. a satellite building to a ;nown boo;ie- 8r. 3cearce learned t*at illegal betting was occurring. 0e reported t*is matter to *is attorney w*o advised *im to ignore t*e issue and not get involved- w*ic* advice 8r. 3cearce .ollowed. William 3cearce )r. !"$<L",#&(- !I%<L ,"F. )*is matter occurred &(#&' years ago. 8r. 3cearce claims *e never became involved in any o. t*e activity o. t*e boo;ie and did not *imsel. place bets wit* 8r. Lovett. William 3cearce )r. !"$<LD#

"(- !IF<LI,#&'.
According to a statement made to t*is investigator over t*e p*one- t*e .ormer convicted boo;ie8r. Lovett- would provide testimony t*at would totally e1onerate 8r. 3cearce. W*en I as;ed *im to do so- *e agreed and later a.ter discussing t*e proposed testimony was advised by *is Attorney not to attend t*e sc*eduled interrogation wit* t*e undersigned. I *ave con.erred wit* Bancy 8orton- w*o con.irmed bot* 8r. 3cearce=s and 8r. Lovett=s statementst*at 5ill 3cearce ;new 8r. Lovett was a boo;ie- but t*at 5ill 3cearce *ad never been involved in t*e gambling activity o. 8r. Lovett. Bancy 8orton )r. !I(<LIE#&&.

February $.&("%
!age %

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Bancy 8orton *ad been 8r. 3cearce=s personal secretary w*en 8r. 3cearce *ad rented to 8r. Lovett. Bancy 8orton )r. !F<L"%#&". )o .urt*er in@uire as to any in.ormation about 8r. 3cearce=s alleged involvement wit* gambling- I *ad re@uested interviews o. t*e .ollowing< 8r. Ro*r- +ditor Carol 3tar;- C*ie. /ames Altic o. 3eneca !olice Department- a .ormer /oplin City !oliceman and C*ie. Lane Roberts. 8r. Ro*r stated *is only ;nowledge o. t*e matter came .rom Lane Roberts orally- w*ic* was memorialiCed on a stic;y note- t*at was later stolen .rom *is des;. 8ar; Ro*r )r. "">'>&("$ !&&<L"&#"D- !&$<L"E#&'!&%<Ll#"'. )*e in.ormation was discussed wit* +ditor Carol 3tar; o. t*e /oplin Alove. I re@uested an interview wit* +ditor Carol 3tar; and s*e orally re.used to discuss t*e issue wit* t*e undersigned. Additionally- C*ie. Altic o. t*e 3eneca !olice Department re.used to be interviewed by me. 0e did tell me to contact 8r. 3tewert- t*e general counsel o. t*e 9.C. Division o. t*e F5I .or release o. t*e in.ormation. In addition- I *ave =con.irmed t*at t*e F5I Aeneral Counsel- Robert 3tewert @ 2D"F6 '"&#DF"" ;nows o. no active investigation on 8r. 5ill 3cearce. 8r. 3tewert suggested t*at t*e prior re@uest by t*e City Attorney- 5rian 0ead- .or t*is report could be e1pedited only two ways. )*e .irst- a lawsuit under t*e Freedom o. In.ormation Act- or a re@uest .or $(& report by William 3cearce .or a copy o. t*is investigation. I *ave o..icially re@uested William 3cearce to ma;e suc* a re@uest to assist t*is investigation. 8r. Aenisio *as .iled .or t*is in.ormation .rom t*e F5I .or 8r. 3cearce. Copy o. said re@uest is attac*ed *ereto as Attac*ment C. C*ie. Lane Roberts said *e could not discuss t*e matter o. 3cearce=s statements in t*e F5I $(& report wit* me because *e t*oug*t t*ere mig*t be a continuing investigation. W*en I said I could .orce *im to reveal *is in.ormation *e said *e was nearing retirement and *e would re.use to do so. Lane Roberts )r. !"F<L"%#"D!",<L"F#&&- !"DL'#,- !"E<L$#D. &. :3tic;y Bote: As noted above- 8r. Ro*r may *ave s*ared t*e in.ormation *e received .rom C*ie. Roberts wit* t*e local newspaper editor- given *is admitted conversations wit* *er and t*e .act t*at *er name appears on t*e note. 8ar; Ro*r )r. "">'>&("$ !"$<L"&#&'- !"'<"#",- +1*ibit ". February $- &("% !age '

0e named individuals t*at *ad access to *is o..ice. 8ar; Ro*r )r. "">'>&("$ !,<LI'# &%- +1*ibit "&. A.ter discovering *ow t*e note became ;nown to 8r. 3cearce- I did not pursue investigations wit* t*e individuals t*at Ro*r *ad suggested *ad access to *is o..ice. 8r. 0ead testi.ied *e *ad received t*e :stic;y note: .rom an employee- 5ec;y 5rill# !inson. 5rian 0ead )r. "">'>&("$ !D<L&&#&'- !E<LI#&&- +1*ibit ". 8r. 0ead=s comment t*at *e *ad presented t*e note about 8r. 3cearce to 8r. 3cearce was con.irmed to be true by 8r. 3cearce. 5rian 0ead )r. "">'>&("$ !I'<L&&#&'- !"F<Ll#F7 William 3cearce )r. !IE<L$#E. I t*en interviewed 8s. 5rill- 2now 5rill#!inson6 and s*e con.irmed .inding t*e :stic;y note: in t*e *all by t*e elevator near t*e 8en=s restroom. 5ec;y 5rill!inson )r. !F<L'#"(. 8s. 5rill#!inson recogniCed t*e *andwriting in t*e note as t*at o. 8r. Ro*r and attempted to .ind *im. 3ince *e was not available and because t*e F5I was re.erred to in t*e note s*e gave t*e note to t*e city attorney- 5rian 0ead. 5ec;y 5rill#!inson )r. !F<L&"#&'- !,<Ll#"$. 5ec;y 5rill#!inson also made re.erence to *er .ear o. reprisal against *er brot*er- w*o wor;s .or a .riend o. 8r. Ro*r. 3ee .acts supra in t*is report. 5ec;y 5rill#!inson )r. !ll<L'#&'- !I&<Ll#&. February $- &("% !age F

February $-&("%
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)0I3 !AA+ IB)+B)IOBALLG L+F) 5LAB9

5. Issues !resented For Investigation # 8r. Woolston

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)*e .acts- circumstances- and et*ical and legal considerations surrounding Council 8ember 8i;e WoolstonC*arles 9ue*n- owner#operator o. Four 3tates 0omes- its subsidiaries and related entities- and t*e City o. /oplin=s c*osen master#developer- Wallace# 5a??ali. )*e investigation conducted on 8r. Woolston *as revealed t*at 8r. Woolston *as received .ees on only one transaction to w*ic* *e admits. %i&e 'oolston Tr. 11(6(2013 )7*+,-16. )*e ot*er transactions received and purc*ased by t*e $'$ *olding company *e *as not received money .ees. 3ee -./ibit submitted by Woolston under oat*. Deposition testimony o. City Attorney- 5rian W. 0ead< 8r. 0ead=s deposition reads as .ollows in Volume I at pages 0rian 1ea2 Tr. 11( (2013 )33*+22-2 , )34*+I-,. H< Bow w*o determined t*e met*od o. purc*asing t*e propertyI A< In w*at regardI H< 3etting up t*e entire program wit* Wallace#5a??aliI A: T/at 3as largel$ negotiate2 bet3een t/e Cit$ %anager an2 t/e fol&s at 'alla4e-0a55ali, alt/o#g/ on4e t/e basi4 str#4t#re 3as 2etermine2 3/en 3e 3ere given mar4/ing or2ers 3e 2i2 4reate a +an2 0an& agreement bet3een t/e Cit$, t/e Re2evelopment Corporation, an2 'alla4e-0a55ali. 8r. 0ead added t*at t*e agreement was dra.ted by a law .irm .rom 3t. Louis. 0rian 1ea2 Tr. 11( (2013 )34*+I4-17, and t*at *e was not involved nor invited to t*e initial negotiations between t*e City 8anager and Wallace#5a??ali. 0rian 1ea2 Tr. 11( (2013 )3 *+I-2, )3 *+13-21. 8r. 0ead admitted t*at t*e City 8anager *ad no legal bac;ground and t*at no outside counsel was consulted by t*e City regarding any legal or et*ical considerations. 0rian 1ea2 Tr. 11( (2013 )3,*+I4-17. 8ost telling .or t*e present investigation is 8r. 0ead=s statement< 6I 2on7t &no3 t/at t/e 3 3-in /in2sig/t it feels to me li&e 3e 4reate2 a 3/ole lot more /oops for o#rselves t/an 3e nee2e2 to 3/en a lot of t/is 4o#l2 /ave been 2one 2ire4tl$ b$ t/e Cit$. 0rian 1ea2 11( (2013 Tr. )37*+6-10. "ebr#ar$ 3, 2014
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8r. 0ead=s re.erence to :t*e $'$: is w*at eventually became t*e /oplin Redevelopment Corporation 2/Re6 organiCed under 3ection $'$.(F( R38o.- w*ic* statute reads in pertinent part as .ollows< An urban redevelopment corporation s*all operate under t*is c*apter on one or more redevelopment pro?ects pursuant to an aut*oriCed development plan- and wit* respect to eac* suc* pro?ect s*all *ave suc* rig*ts- powers- duties- immunities and obligations- not inconsistent wit* t*e provisions o. t*is law- as may be con.erred upon it by city ordinance duly enacted by t*e legislative aut*ority o. a city a..ected by t*is c*apter w*ic* is aut*oriCing or *as aut*oriCed suc* plan7 provided- *owever- t*at no suc* rig*ts or powers- e1cept t*ose previously granted- s*all be granted by any governing aut*ority to any urban redevelopment corporation a.ter August "$- "ED&- unless t*e governing aut*ority s*all *old a public *earing .or t*e stimulation o. comment by t*ose to be a..ected by any suc* grant and s*all determine t*erea.ter t*at t*e area covered by t*e plan is blig*ted7 ... According to City Attorney 0ead and Councilman Woolston- +1*ibit ' is a list provided by Councilman Woolston to t*is investigation w*ic* purports to be closing dates and addresses o. properties purc*ased by Four 3tates 0omes and or C*arles 9ue*n 2owner o. Four 3tates 0omes6. 5rian 0ead )r. "">'>&("$ !&'<L&"#&'7 8i;e Wool3ton)r. "">F>&("$ !F<L$#E. Councilman Woolston admitted to some involvement in t*e purc*asing o. t*e "E properties listed on +1*ibit '. 8i;e Woolston )r. "">F>&("$ !,<LD#&'- !D<L"%# &$. 0owever- neit*er *e nor *is employer- !ro "(( Realty- are listed as a buyer on +1*ibit '. +1*ibit "DA is t*e Land !urc*ase 3ummary as o. October $"- &("$- o. t*e /oplin Redevelopment Corporation. All o. t*e properties listed on +1*ibit ' are also listed on +1*ibit "DA- save t*e properties purc*ased by /ennings>5rown. )*e @uestion arises< w*y did Wallace5a??ali *ave a contract wit* t*e /oplin Redevelopment Corporation to ac@uire property .or t*e City and to receive a substantial .ee .or ac@uiring suc* property and did receive a substantial .ee .or ac@uiring suc* property w*en t*e property was actually ac@uired by Four 3tate 0omes or its owner- C*arles 9ue*nI Councilman Woolston admitted to entering a wor;ing relations*ip wit* C*arles 9ue*n wit*in :a couple o. mont*s a.ter t*e tornado.: 8i;e Woolston )r. "">F>&("$ !&'<L&#'. 8r. 9ue*n declined to o..er any in.ormation regarding *is business dealings wit* Councilman Woolston. 8r. 9ue*n=s deposition- in relevant part- reads as .ollows< C*arles 9ue*n )r. !F<Lll#&" H< W*at did you t*in; we were tal;ing aboutI February $-&("% !age E

A< /ust land purc*ases t*at 8r. Woolston *as purc*ased .or me- or as a# H< Well- I t*in; t*is covers t*at. A< It covers a lot more. H< Ges- it does. A< 3o I=m going to elect to leave and i. we want to tal; any .urt*er I=ll bring my attorney because t*at is not w*at I understood t*at 8r. Woolston was being investigated .or all o. t*at. 8r. 9ue*n twice declined to cooperate in t*is investigation. It must be noted t*at -./ibit 1,8 at Resolution &("$#(", t*roug* Resolution &("$#(&E inclusive all purport to *ave t*e /oplin Redevelopment Corporation purc*ase property directly .rom Four 3tates 0omes- and yet Wallace#5a??ali received its standard .inders .ee .or eac* o. t*ese transactions< J&(&F.(( .or "D(& Delaware7 J""F%,.(( .or "D"" Delaware7 J"(''".(( .or "D"".' Delaware7 J"'&&.(( .or "D&( Delaware7 J"F'&.(( .or "D&' Carolyn !lace7 J"$F$.(( .or "D$( Delaware7 J"'&%.(( .or "D$" Carolyn !lace7 J"%DD.(( .or "D%( Delaware7 J&(&(.(( .or "E(" Carolyn !lace7 J"E(E.(( .or "E(, +. "E t*7 J'(&(.(( .or "E"E +. &(t*7 J""F'%.(( .or "E&" +. &(t*7 and last but not least- JD'&%.(( .or &&($ +. &( t*K Furt*ermore- eac* transaction used t*e Abbey )itle Company and t*e Arvest 5an;owned by Wal8art. In .act every transaction depicted in -./ibit 1,8 *as Arvest 5an; listed as t*e mortgagor. Bo e..ort was made in s*aring t*e City=s business wit* local community owned ban;s and title companies on bid. According to Ric*ard Russell- .ormer 8ayor and Councilman- title insurance services *ave not been bid. I. t*ey were to be bid- title insurance .ees could *ave been reduced .rom an average o. J%.(( per t*ousand dollars o. insurance to .D$ cents a t*ousand. Ri4/ar2 R#ssell Tr. )14*+,-11. I. 8r. Ro*r bid t*is title wor; out- ,EL o. price actually paid .or t*e title insurance could *ave been saved. Wallace 5a??ali ignored t*is savings .or political reasons. Ri4/ar2 R#ssell Tr. )12*+16-17. Local residents- Dana and William !ar;er- deposed regarding Councilman Woolston=s actions during t*e period ?ust prior to a neig*bor*ood meeting *eld in October- &("&stating- :8ost o. t*e people lived#well- w*ere t*ey lived is w*ere t*e movie t*eater is going and all t*at- t*e library- and t*ey were concerned because 8i;e Woolston ;ept ;noc;ing on everybody=s door wanting to sell t*eir property- even i. t*ey=d already rebuilt- sell it so we can tear it down.: 9ana an2 'illiam )ar&er Tr. )7*+17-23. "ebr#ar$ 3,2014
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According to t*e !ar;ers- 8r. Woolston in.ormed t*em t*at t*ey were :stupid .or rebuilding: and w*en *e was as;ed by t*e !ar;ers w*y a grocery store was not planned .or 3unset Ridge- :*e told us at t*at time t*at t*ose people were too important- we couldn=t do t*at to t*em.: Dana and William !ar;er )r. !D<L'#"E. )*e !ar;ers were .urt*er in.ormed by 8r. Woolston t*at a par; w*ic* *ad been deeded to t*e City :needs to come out.: Dana and William !ar;er )r. !E<L&#'. In s*ortCouncilman Woolston appears to *ave conducted *imsel. as a one man Redevelopment Corporation and one wit*out a clue as to t*e statutory re@uirements o. a $'$ corporation. )*e !ar;ers .urt*er deposed t*at Councilman Woolston spo;e to t*em about ac@uiring various lots .or a party w*ose name *e at .irst would not revealbut eventually told t*em t*e party was Four 3tate 0omes w*ic* *e *ig*ly endorsed as .ollows- :Gou ;now t*ey build good stu...: Dana and William !ar;er )r. !&'<L"&# &%. )*us- according to t*e !ar;ers- 8r. Woolston was acting as an agent .or 8r. 9ue*n w*o was acting as an agent .or Wa""ace#5a??a"i w*o was billing t*e City big .ees .or .inding property to develop. )*e actions o. 8r. Woolston- 8r. 9ue*n and Wal"ace#5a??ali lead t*e !ar;ers to conclude con.licts o. interest- i. not outrig*t .raud was involved. Residents Alis*a and Dustin 5rigance deposed t*at 8r. Woolston sent t*em a letter in /uly o. &("& stating t*at someone was interested in purc*asing t*eir property. Alis*a and Dustin 5rigance )r. !,<L&(#&$. In re.erring to 8r. Woolston t*ey stated- :0e was wor;ing .or Four 3tate 0omes to purc*ase an e1tremely large amount o. property in our area.: Alis*a and Dustin 5rigance )r. !,<L"%#",. )*e 5rigances .urt*er deposed t*at t*ere were at t*at time rumors o. a movie t*eatre>library comple1 being planned .or t*at area< :at &(t* and Connecticut.: Alis*a and Dustin 5rigance )r. !,<L"%#"'- !D<Ll. 8r. Woolston deposed t*at *e *ad received a commission on t*e sale o. "D&' Connecticut. 8i;e Woolston )r. "">F>&("$ !,<LD#"F. )*e 5rigances .urt*er stated in t*eir deposition t*at t*e only person t*ey *ad contacted regarding t*e sale o. t*eir property was t*eir realtor. 0owever- at a neig*bor*ood meeting t*ey were approac*ed by Aary 5o1- a representative o.Wallace#5a??ali. 8r. 5o1 was s*oc;ed w*en t*ey told *im t*ey were not selling because apparently 8r. Woolston *ad in.ormed *im ot*erwise. Alis*a and Dustin 5rigance )r. !",<Lll&'- !"D<Ll#'. )*e 5rigances stated t*ey wound up selling t*eir property because Four 3tate 0omes *ad purc*ased all t*e surrounding property. Alis*a and Dustin 5rigance )r. !"E<L,#E. )*ey also suggested t*at 8r. Woolston *ad not been *onest wit* t*em because *e *ad prior ;nowledge o. t*e City=s plans .or t*e t*eatre>library comple1. Alis*a and Dustin 5rigance )r. !%%<L"%#&%. )*ey went so .ar to say t*at 8r. Woolston was :controlling t*e !rices:. Alis*a and Dustin 5rigance )r. !%'<Ll. It is interesting to note t*at t*eir property was purc*ased by C*arlie 9ue*n in February &("$. As o. December $"-&("$ 8r. 9ue*n *as not sold t*is property to February $- &("%
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t*e $'$ Corporation. )*is property is located at "D"& Delaware. 3ee also +1*ibit &F # 3ales Contract- C*arlie 9ue*n- buyer and 8i;e Woolston- bro;er .or !ro "((- Inc.
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)im !ar;er=s deposition .urt*er supports t*e conclusion t*at 8r. Woolston and 8r. 9ue*n were complicit in ac@uiring real property .or t*e City directly or indirectly by ac@uiring it .or Wallace#5a??ali. 0e re.erred to t*e /asper County 5eacon website w*ic* lists *ome sales. 23everal pages o. t*is website are contained in t*e /oplin . Redevelopment Corporation Resolutions6. 0e learned .rom t*e website t*at 8r. Woolston *ad purc*ased :numerous properties around Carolina !lace ... F or , lots t*at *e boug*t over t*ere.: )im !ar;er )r. !F<L&&#&'- !,<Ll#%. 0e noticed later t*at t*e same properties were subse@uently sold to t*e City o. /oplin t*roug* t*e /oplin Redevelopment Corporation :.or about t*ree times t*eir appraised value.: )im !ar;er )r. !,<L"&#"F.
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5ased on t*e sworn testimony o. residents o. t*e city o. /oplin- as well as t*at o. t*e /oplin City Attorney and Councilman Woolston- and t*e e1*ibits re.erred to *erein- it is not an understatement to conclude t*at 3ection $'$.(F( R38o was not only violated but w*olly disregarded. )*e actions o. 8r. Woolston- 8r. 9ue*n- and Wallace#5a??ali are unet*ical since t*ey must be loo;ed at as conspiratorial under t*e totality M o. .acts. Furt*er investigations s*ould be engaged wit* complete .ee disclosure to t*e City Council. All business s*ould be stopped under t*e contracts between Wallace 5a??ali and t*e City o. /oplin. Furt*er investigations s*ould be considered. Assuming arguendo- t*at 8r. Woolston *as testi.ied *onestly t*at *e *as received no .ees on t*e transaction purc*ases by t*e /oplin Land Development Corporation- w*at legal and et*ical issues *as *e violatedI A very important aspect o. et*ical decisions is t*e appearance o. certain events to t*e public. In t*e case o. a Councilman li;e Woolston- wit* e1pertise in real estate matters- *is potential contribution to city government ;nowledge is a vast reservoir .or ot*er council members and t*e public to rely upon in t*eir decisions. )ransparencies are crucial w*en t*e city o..icials are *andling large sums o. public money in t*e redevelopment o. /oplin. One must e1amine 8r. Woolston=s actions care.ully to realiCe t*e .ull impact o. *is actions and non#actions in t*e transparency o. city government. A review o. Council votes reveal many abstentions on crucial votes on real estate matters by Councilman Woolston. 8r. Woolston readily admits t*is conduct in *is testimony 8i;e Woolston )r. "">F>&("$ !&&<LD#&' and +1*ibit D. )*is conveys t*e e1tent o. t*e collision between 8r. Woolston=s personal and business interests. February $- &("%
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)*is need .or abstentions s*ould place t*e public on notice t*at 8r. Woolston is involved in t*e matter personally and t*at t*e city cannot e1pect *is best e..orts because o. *is potential or real con.lict o. interest. )*is notice to be wary o. *is conduct in t*ese con.licted matters tells t*e public bluntly- :do not rely on my ?udgment because I cannot give you t*e .iduciary obligations o. my o..ice:. In ot*er words- :you cannot rely on me to be .air because I *ave personal interests t*at I must protect.: )*is conduct is destructive o. a trust relations*ip i. it is engaged in .re@uently. 8r. 3tinnett agrees<

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Furt*er- t*e .re@uency o. saying :I *ave a .inancial interest:- but *e doesn=t e1plain w*at t*e .inancial interest is ... :" *ave voiced my opinion to all o. t*em- t*at i. you=re going to abstain you s*ould ma;e it very clear to t*e public as to w*y N: !*il 3tinnett )r. !IO<L",#&%. :... and w*en money is involved it always brings out t*e bad side o. everybody.: O*il 3tinnett )r. !ll<L%#'. In addition- t*e public trust is deprived o. any e1pertise 8r. Woolston=s *as ac@uired .rom past e1periences. )*e ;nowledge *e possesses was .or many- a good reason to vote .or *im. )*ese observations coupled wit* t*e .ollowing .acts leads to t*e inevitable conclusion t*at Councilman Woolston *as stepped over t*e boundary line o. et*ical standards. # 8r. Woolston admitted in *is testimony t*at *e is a business associate o. C*arles 9ue*n in real estate and development matters. 8r. 9ue*n was as;ed to testi.y by t*e undersigned. C*arles 9ue*n )r. !F<Lll#&" 2see in.ra6. 8r. 9ue*n was given a second opportunity a.ter consulting wit* *is personal Attorney to state *is position since t*e Council *ad re@uested me speci.ically to in@uire as to t*is relations*ip wit* 8r. Woolston. 0e re.used to testi.y a second time. Additionally- 8r. Woolston and 8r. 5o1 *ad signi.icant participation in per.orming t*e due diligence in t*e initial *iring o. t*e Wallace 5a??ali .irm. Aary 5o1 )r. !"&<L$#,- !"'<L$#""7 5en?amin Rosenberg )r. !&'<L&#"". Bow- Aary 5o1 is t*e pro?ect manager .or t*e /oplin o..ice o. t*e Wallace 5a??ali Firm. Aary 5o1 )r. !,<LE#"%. )wo re@uests were made by t*e investigator to @uestion 8r. Wallace. 5ot* resulted in cancellations. One at my o..ice since 8r. Wallace was in /e..erson City and agreed to meet at Osage 5eac*. )*e second appointment sc*eduled in /oplin also resulted in no interview. 8r. Woolston *as admitted to regular participation in t*e Coning application process c*anging Coning .rom residential to commercial< February $- &("% !age "$

8i;e Woolston )r.ll>F>&("$ !&D<Ll#D. !&D<L&"#&'. !&E<L"

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H. And o. course as I understand your city- i. you as an alderman tal; wit* somebody in t*e Poning Department trying to .avorably impress t*em to ma;e a decision you could be impeac*ed .or t*atI
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A. I probably could. I tal; wit* t*em .re@uently on C*arlie=s pro?ects and ot*er pro?ects- but typically w*at I re@uest is so t*at I understand w*at t*ey need or understand t*e process. It=s never to lobby .or w*at *e=s doing. And .re@uently w*en I go down t*ere I=ll let t*em ;now t*at I=m t*ere as a private member o. t*e community as opposed to a Council member re@uesting in.ormation.

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H. 5ut it also identi.ies to t*ose Coning people or t*ose people in t*e City t*at t*is is a pro?ect t*at you mig*t be involved wit* and maybe t*ey=re going to treat it more gingerlyI
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. A. Obviously t*ey ;now t*at I=m a Council member and I worry about t*at on occasion because I=m sure t*at we as Council members get treated a little di..erently t*an any ot*er private citiCen w*en we go in ma;ing essentially t*e same re@uest. Do t*e employees at t*e Poning 5oard notice t*at a Councilman w*o pays t*em *as :some interest: in certain applications be.ore t*emI W*at possible city purpose does t*is conduct serve by t*e CouncilmanI )*ere *as been ample testimony .rom ot*ers t*at 8r. Woolston wor;s very *ard to ac@uire certain properties. Dana and William !ar;er )r. !"&<LE#",7 /im West )r. !,<L&(#&'7 Alis*a and Dusting 5rigance )r. !"&<L%# ""7 )im !ar;er )r. "&>",>&("$ !,<L"#"(- !F<L&&#&'7 5en Rosenberg )r. !"&<L$#"(. 8r. CorteC *as been approac*ed .our times by 8r. Woolston. /im West )r. !D<L%#&'- !E<L"#'7 /enni.er 8c9eoug* )r. !F<L"$#&(. :I=m ?ust saying t*at *e put *imsel. in a position w*ere t*ere is @uestioning about all o. t*ose activities and t*e perception and t*e .act t*at *e recuses *imsel. .re@uently .rom voting is leading t*e public t*in;ing t*at t*ere is somet*ing t*ere.: :I don=t ;now i. t*ere is or not- and t*at casts a s*adow over t*e w*ole Council.: !*il 3tinnett )r. !E<L"(#&&. 8r. !*il 3tinnett testi.ied t*at as a .ormer councilmember and 8ayor- Woolston was operating contrary to con.lict o. interest laws. February $-&("% !age "%

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VI. Legal Issues and Council Options A. 3cearce

Is t*ere a legal basis .or censure o. Councilman 3cearceI 5ased on investigative .acts governed during t*e critical investigation t*ere is no .actual basis in .act .or discipline o. Councilman 3cearce. )*ere is no present evidence to support any illegal or unet*ical activity on 8r. 3cearce.

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)*e evidence supports 8r. 3cearce=s position and t*e allegation against *im *as been none1istent by testimony< )*e +ditor o. t*e /oplin Alobe *as re.used to ma;e a statement concerning ;nowledge s*e purportedly *ad about 8r. 3cearce acting wit* any gambling activities. 3imilarly- people t*at *ad inside in.ormation about t*e F5I @uestioning o. 8r. 3cearce- to wit< !olice C*ie. Lane Roberts and .ormer City /oplin !oliceman- /ames Altic- w*o is now C*ie. o. City o. 3eneca- *ave re.used to give any details o. an alleged F5I report t*at lead to an indictment and conviction o. /oplin ==boo;ma;er== Lovett. W*en o..ered to reveal .acts t*at would support wrong doing by 8r. 3cearce- bot* Lane Roberts and /ames Altic re.used. Roberts allegedly swore secrecy re@uired by t*e F5I. Any continuing investigation against Councilman 3cearce was clearly disavowed by t*e Aeneral Counsel o. F5I 9.C. Division. W*en I as;ed 8r. 3cearce to re@uest t*e original $(& report o. *is @uestioning- about 8r. Lovett- 3cearce agreed to re@uest any record. 0e *as done so in writing t*roug* 8r. Aenisio in@uiring to t*e F5I. 3ee attac*ment attac*ed *ereto as Attac*ment C. A.ter consulting wit* t*e F5I Aeneral Counsel- I .ind no credibility in a t*eory o. a continuing investigation on 8r. 3cearce. I. t*e Council o. /oplin wis*es to .orce Lane Roberts to testi.y or .ace disc*arge- I will pursue t*is matter. In lig*t o. t*e statement o. F5I Aeneral Counsel and t*e passage o. time wit*out indictment- I believe 5ill 3cearce to be innocent o. participating in gambling activities wit* 8r. Lovett. Bancy 8orton )r. !IO<L"E#&"7 William 3cearce )r. !"$<LD#"(. I also do not .ind any et*ical violations *ave occurred in subse@uent newspaper developments on t*is :non#story:. 8r. 3tinnett s*ares t*is opinion. !*il 3tinnett )r. !F<LIO#&&. !*il 3tinnett was a .ormer Councilman .rom "EED to &("( and .ormer 8ayor .rom &((%#&((F .or t*e City o. /oplin. 0e testi.ied t*at t*e allegations on 8r. 3cearce :I do not believe t*at causes an et*ics violation .or *im at t*is point in time.: !*il 3tinnett )r. !,<L&#"%. Legal Conclusion< A public .igure may sue .or de.amation w*en t*ere is actual 8alice under t*e .ormer case o. 3ullivan vs. Bew Gor; )imes. N.Y. Times Co. v. Sullivan, $,F U.S. &'% 2"EF%6.

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W*en a ;nown .alse*ood is ;nowingly perpetrated a libel suit may be broug*t by a public .igure against a person t*at continues to perpetrate a .alse*ood. In t*e opinion o. t*e undersigned- continued pursuit o. t*is issue wit*out some proo. against 8r. 3cearce is to invite a de.amation lawsuit. I can .ind no evidence t*at 8r. 3cearce *as committed crime or an et*ical violation o. *is o..icial duties as a City 8ember. W*en t*e $(& F5I report arrives- I believe t*ere will be no continuing investigations o. 8r. 3cearce. 8r. 3cearce by re@uesting t*e @uestioning to w*ic* *e was e1posed- *e certainly does not believe t*e investigation centered on *imsel.. 3imilarly- t*ere is no evidence to support 8r. 3cearce *ad any involvement in stealing t*e :stic;y note: o.. o. 8r. Ro*r=s des; or .rom *is o..ice. 5. Woolston- Wallace. 9ue*n )*ere are several options t*e Council must consider regarding t*e results o. t*e investigation. )*ese are divided into two groups. )*e .irst group are t*ose options surrounding t*e actions involving councilman Woolston. )*e second group are t*ose surrounding t*e Consultant Wallace and 8r. 9ue*n. # Councilman Woolston must divest *is interests or resign .rom t*e Council. )*e contract wit* Wallace 5a??ali is very compre*ensive in scope and e1istence. )*e City will need all o. its e1pertise to watc* and guard t*e public trust .or t*e .oreseeable .uture. A close and t*oroug* monitoring o. all aspects o. t*e redevelopment o. t*e City o. /oplin will be a daunting tas;. A commitment o. t*e entire sta..t*e City Council and t*e public will *ave to wor; to monitor t*e proposals o. t*e consulting developers to insure a proper balance o. t*e type pro?ects t*at will be a .ruit.ul and prudent investment to bring t*e best to t*e /oplin community. )*e public and private sector must complement eac* ot*er to ma1imiCe t*e return. 8r. Woolston *as great e1pertise to o..er- *owever *e cannot gain personally or appear to gain .rom *is own decisions wit* inside in.ormation. 8r. Woolston s*ould register- as s*ould 8r. 9ue*n- as a local lobbyist under 8o. Rev. 3tat. wit* t*e +t*ics Commission. )*e law re@uires t*is disclosure to t*e public so all decisions are made in t*e lig*t o. day. 3ee 3ections "('.%,( and "('.%,$ R38o. Beit*er o. t*ese gentlemen is presently registered as local lobbyists. February $-&("%
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"ebr#ar$ 3, 2014 8r. Woolston s*ould voluntarily step down or s*ould be .orced to be removed .rom t*e City Council. )*e 8issouri +t*ics Commission s*ould be advised o. t*ese past appearances o. improprieties to cleanse t*e City o. suspicion by its public. A t*ird option is to investigate more .ully t*e vast opportunity to receive e1orbitant .ees under t*e Wallace 5a??ali contracts wit* t*e City o. /oplin. !er*aps .urt*er investigations could .orce a :clean slate: so business can resume. Wit* t*e lac; o. participation by 8r. Wallace or 8r. 9ue*n in t*e present investigation- no conclusions can be made i. wrongdoings *ave occurred or w*et*er t*ey are li;ely to occur. 0ow can proper decisions be made as to continuing t*e relations*ip wit* Wallace 5a??ali=s .irm wit*out e1tensive disclosures as to .ees generated t*us .ar. !ublic demand re@uires t*is open debate. !resently all communications between any department o. t*e City and Wallace employees goes only t*roug* t*e City 8anager e1clusively. )*e City Attorney and t*e Council are :as needed only:. Bo procedural sa.eguards e1ist to monitor t*ese private contracts. )*is is not in t*e public interest to privatiCe t*ese communications. Bo legitimate public interest is served by t*is secrecy. !rotocols s*ould be placed in writing .or all .uture communications and voted in place by t*e City Council.
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