More McHenry County Blog

The Haneys have owned their property since 1977, which included their home, and an extra lot. The purchase of the property included the deeded rights to use 3 additional private parcels. 

In October 2010 a law suit was filed by the Haneys in McHenry County Circuit Court (10 CH 3178) against the Village of Johnsburg who since 2006 have maintained that there is a deeded public right away over this parcel.

The Haneys have been and currently are listed on the Tax Assessment of the parcel at issue. This court proceeding has not had a trial.

In January, February and March of 2011 the Village of Johnsburg Attorney Michael Smoron prepared eleven fraudulent deeds, listing eleven (11) heirs (who have no legal standing) as the Grantors and deeded the Haneys property to the Village of Johnsburg.

The Village Attorney, representing the Village of Johnsburg, created 11 false deeds and conveyed the Haneys property from heirs who do not own the property to his other client the Village of Johnsburg. On March 15, 2011 the Village of Johnsburg filed a PTAX-300 Application with not only the “fraudulent deeds” but also altered documents to obtain Tax Exempt Status on the Haneys property.

On May 13, 2011, an unidentified person took an unapproved check signed by Claudett Peters and the President Ed Hettermann and paid the Haneys property taxes at the McHenry County Treasurers Office without the advice and consent of the Board of Trustees.

It was this specific action outside of the boundaries of the law, segregation of duties according to the US Government Accounting Standards, and without the advice and consent of the Village of Johnsburg Board of Trustees that resulted in the Freedom of Information Investigation.

Additionally, on November 4, 2011 the McHenry County Board of Review signed and approved the Village of Johnsburg PTAX-300 Application containing the “fraudulent deeds” and altered documents and forwarded it to the Illinois Department of Revenue for approval without a proper hearing or notification of the Haneys.

Through the Freedom of Information Act the Haneys obtained a copy of the Application from the Illinois Department of Revenue containing the fraudulent deeds and altered documents and quickly submitted unaltered documents as well as the true and accurate copies of ownership of the parcel which resulted in a decision to either have the Village of Johnsburg withdraw the PTAX-300 Application or the Illinois Department of Revenue will deny the Application. (Request for Investigation and supporting documents are being submitted under separate cover)

This summary is prepared by an Illinois concerned citizen, based upon documents, reports and information received by and through the Freedom of Information Act.

These statements are based upon one person’s monopolizing all the “Segregation of Duties” as well as illegally maintaining the position of “Clerk” within the Village of Johnsburg.

Since the Village of Johnsburg does not have a treasurer, this same individual signs as the Treasurer when the Illinois Statutes require a Treasurer to report.

The Auditor for the Village of Johnsburg covering-up the lack of internal controls, as well as the Federal Funding received by the Village of Johnsburg from Grants and Earmarks that have never been reported to the OMB via an A-133 form (See Volume 1, OMB).

This summary will weave the steps of the illegal movements committed by Claudett Peters with supporting documentation tendered in the two (2) corresponding volumes of evidence.

The requests sent to the Village of Johnsburg, the McHenry County Clerk and the Illinois State Comptroller were submitted based upon a five (5) year glance but in order to focus on deliberate corrupt movements this summary focuses on two (2) fiscal years, fiscal year 2006 (May 1, 2005 to April 30, 2006) and the fiscal year 2007 (May 1, 2006 to April 30, 2007). Additional information is available upon request.

Segregation of Duties defined is “A fundamental element of internal control is the segregation of certain key duties. The Basic idea underlying segregation of duties is that no employees should be in a position both to perpetrate and to conceal errors or fraud in the normal course of their duties. In general, the principal incompatible duties to be segregated are:

As the Collector for the Village of Johnsburg, Claudett Peters has complete control of the “Custody of Assets”, simultaneously as the Director of Operations/ Administrator for the Village of Johnsburg,

Claudett Peters has complete “authorization or approval or related transactions affecting those assets”, and then Claudett Peters illegally usurps the position of “Treasurer” or “Assistant Treasurer” which gives Claudett Peters complete control of “Recording or reporting of related transactions” when necessary as she submits the Annual Reports to the McHenry County Clerk and the Illinois State Comptroller, and then places the publication of the annual “Treasurers” Report in the local newspaper. When Claudett Peters is required to submit monthly Treasurers Reports to the Board of Trustees, she submits Revenue and Expenditure Reports.

In (Volume 2 Exhibit 24, 25, 26, 27, 28) you can see that the audits collected for the Fiscal years 2006 (page 12), 2007 (page 11), 2008 (page 11), 2009 (page 11), and 2010 (page 11) clearly state from the Auditor, that indeed State and Federal Funds were received by the Village of Johnsburg for the fiscal year for certain projects.

From the Federal oversight OMB the federal funds sent to the Village of Johnsburg have never been reported as required by the A-133 form. The Auditor for the Village of Johnsburg is required to attach an A-133 form and send the A-133 form to the cognizant agency for appropriate oversight.

If the Auditor for the Village of Johnsburg does not identify the obvious, non-existent internal controls and then ignores the Federal requirements of attaching the A-133 to the annual audit of the recipient of Federal Funds then one of two assumptions present itself, one is that the auditor does not know about the mandate associated with the acceptance of federal funds or two, that the auditor is covering up the misuse of those funds.

The author of this report states through information and belief that the Auditor, Evans, Marshall & Pease, P.C. indeed has full knowledge of the mandated requirements associated with the acceptance of federal funds because the same Auditor, Evans, Marshall & Pease, P.C. submits the mandated A-133 for the Woodland School District as evidenced in (Volume 1).

The references on each of the Village of Johnsburg’s Audit refer to millions being collected by the Village of Johnsburg each year, the standard base amount for the tendering of an A-133 is for the base line $500,000.

If the Auditor cannot identify the basic internal controls that are ignored in the Village of Johnsburg and also refuses to attach the A-133 form to each corresponding audit then the presumption is that the auditor is covering up the misuse of funds and therefore the auditors criminal role must be included in the Financial Crimes being committed by the Village of Johnsburg.

The Village of Johnsburg’s financial crimes must be investigated and prosecuted to the fullest.

The “we didn’t know” excuse can not be allowed due to the fact that these crimes are willfully being committed by people who know what they’re doing and are going to great extents to cover-up, conceal, and continue these crimes.

This “sleepy” little town is not just committing crimes with local, county and state monies; they have received “millions” of federal dollars annually making every Citizen in the United States a victim of these financial crimes being committed in Johnsburg.

FOIA sent on June 10, 2011 (Exhibit 1) this was a request regarding Administrative positions and their corresponding salaries since April 2005, response received from the Village of Johnsburg on June 16, 2011. (Exhibit 2) This response clearly shows that Claudett Peters is the Clerk, Administrator and Comptroller. (Exhibit 22)

*Documents received: Policies and Procedures, spreadsheet (Exhibit 22) and statement from the Village of Johnsburg that “Additionally, there is no document responsive to your June 10, 2011 request related to the position of Treasurer as there is no such position”. That statement confirms that since April 2005, the Village of Johnsburg has not had an appointed or elected Treasurer.

CONCLUSION:

There is only one person in the Village of Johnsburg that controls all three duties mandated according to the US Government Accounting Standards.Claudett Peters is the Administrator, the Comptroller, and she assumes the role as Treasurer even though according to the Village of Johnsburg FOIA response sent on June 16, 2011 “There is no such position as Treasurer”.

NO INTERNAL CONTROLS INSIDE THE VILLAGE OF JOHNSBURG

Claudett Peters is the Comptroller/Collector of the Village of Johnsburg (Exhibit 22 & 23)

65 ILCS 5/3.1-35-125 mandate a “Collector Report” between the 1^st and the 10^th of April each year the Collector is to present a Collector Report. FOIA sent on October 3, 2011 (Exhibit 3) requested a copy of the aforementioned report, response from the Village of Johnsburg sent on October 11, 2011 (Exhibit 4) state that “No documents exist”.

Claudett Peters in her role as the Comptroller/Collector for the Village of Johnsburg is in violation of every Illinois Statutes for Comptrollers or Collectors.

AUTHORIZATION OR APPROVAL OF RELATED TRANSACTIONS

Claudett Peters is the Director of Operations/Administrator of the Village of Johnsburg (Exhibit 22) in this role for the Village of Johnsburg she is responsible for the administrating of the Village Assets.

As evidenced in the following extractions, Claudett Peters signed a check prior to board approval gave the unapproved check to an unidentified person to expend, then the question can be raised, in her role as the Director of Operations/ Administrator how many other checks are being signed outside of the Boards knowledge. This is one clear case of Official Misconduct in her capacity as the Director of Operations/Administrator.

CONCLUSION:

Claudett Peters in her role as the Director of Operations/Administrator for the Village of Johnsburg is committing Official Misconduct by signing a check, giving that check to someone outside of the Village of Johnsburg to disburse the funds prior to Board approval.

NO INTERNAL CONTROLS INSIDE THE VILLAGE OF JOHNSBURG

FOIA sent on June 8, 2011, response received by the Village of Johnsburg on June 14, 2011

*Documents received: Check #106522, fund disbursements, and May 17, 2011 Board minutes. See Volume 1 for a copy of the Check, fund disbursements and May 17, 2011 Board minutes.

*Additional supporting documents:

1. “Duplicate” Real Estate Tax Bill from the Office of William LeFew with hand written note, property taxes were paid on May 13, 2011.

2. Front and back of check #106522.

3. Tax Exempt letter from the Illinois Department of Revenue issuing Tax Exempt Number for the Village of Johnsburg.

Expenditure of check #106522 on Friday May 13, 2011 and the Village Board approved the expenditure on May 17, 2011. Signatures on the unapproved check # 106522 were Claudett Peters (the Village of Johnsburg Director of Operations) and Ed Hettermann (the President of the Village of Johnsburg)

NO INTERNAL CONTROLS INSIDE THE VILLAGE OF JOHNSBURG

*Claudett Peters as the Director of Operations/Administrator violated laws by signing a check prior to board approval.

FOIA sent on , requesting name of individual agent from the Village of Johnsburg that took the “unapproved” check #106522 and paid the property taxes as well as the original receipt from the Property tax payment, response received by the Village of Johnsburg on June 14, 2011.

* “Village of Johnsburg denied request”

Requesters submitted a Request for Review by and through the Office of the Public Access Counselors Office and the receipt was tendered to the Illinois Attorney General’s Office. In (Volume 1) is the July 12, 2011 Letter from the Freedom of Information Officer, Claudett Peters to the Illinois Attorney General’s Office that “In follow up to our telephone conversations and your letters of July 8, 2011, please be advised that at the time of the FOIA request I did not have a copy of a receipt for property taxes paid by the Village. Since that time, my office has received a copy of a receipt that I believe is responsive to the request. I have enclosed it for your review.”

CONCLUSION:

In her role as the Administrator, Claudett Peters gave a signed unapproved check dated May 13, 2011 to someone “outside” of the Village to pay the personal property taxes of a resident.

NO INTERNAL CONTROLS INSIDE THE VILLAGE OF JOHNSBURG

*Claudett Peters as the Director of Operations/Administrator violated laws by giving a signed check without board approval to unidentified person to expend the check.

On June 10, 2011 a Freedom of Information Request was sent to the Village of Johnsburg regarding certain Administrative Positions, including the Treasurer. In the response from the Village of Johnsburg to the Administrative position of Treasurer and corresponding salary, the Village FOIA Officer, Claudett Peters responded that there is no Treasurer from the Village of Johnsburg. The specific requirements set forth by the Illinois Statutes regarding taxing bodies and monies they report or record rest in the Office of the Treasurer. (See Financial Spreadsheets 1, 2, and 3 in Volume 1)

**This section is included in the Financial Crimes Summary for the purpose of identifying the statutory non-compliance with regard to financial reporting as well as clear and convincing proof of how these Financial Crimes have gone unchecked, unnoticed and uncontested.

Claudett Peters is appointed to the position of Clerk (Exhibit 22). This position according to the Illinois Statutes is an elected position. Once the population of a municipality reaches the population of 5000 the position is to be placed on the ballot during the election cycle with the President and Board of Trustees. As the Clerk (Local Election Authority) this position may be appointed by the Boards approval of a “Special Acts” Ordinance designating the position of clerk as appointed rather than elected. The population of Johnsburg reached 5000 in the year 2000 as evidenced by the 2000 Census. Claudett Peters as the Local Election Authority refuses to place the position on the ballot for the Voters in Johnsburg to elect a clerk. It is from this position that she attains all of the duties controlling all of the Village of Johnsburg’s assets. By and through her refusal to follow the Election Codes and her willful Election Fraud by not allowing the voters of Johnsburg to a free and open election process, her Financial Crimes in the Village of Johnsburg cannot be stopped without outside intervention.

FOIA sent on June 9, 2011 regarding the Village of Johnsburg’s adoption of an Ordinance or Resolution of “Special Acts” identifying the position of Clerk as appointed rather than elected. The response from the Village of Johnsburg was inconclusive and was submitted to the Illinois Attorney General’s Office by and through the Public Access Counselor’s Office for review and it is determined that there is no “Special Acts” ordinance or resolution therefore since the population reached 5000 as certified by the 2000 Census the position of Clerk was and is to be placed on the ballot in the Election cycle and as the Local Election Authority, Claudett Peters is holding that position hostage from the voters of Johnsburg.

Claudett Peters as the Clerk of the Village of Johnsburg according to the Illinois Statutes is to draft an Affidavit when the Treasurer files the Annual Treasurers Report 65 ILCS 5/3.1-35-65(a). FOIA sent on October 3, 2011 requested a copy of the Affidavit of the Clerk “A True and correct copy of this Annual Treasurers Report was filed with the clerk and published in the newspaper” and the Village of Johnsburg sent a response that stated “NO DOCUMENTS EXIST RESPONSIVE TO THIS REQUEST” (Exhibit 3 & 4) SEE FINANCIAL REPORTS SPREADSHEET PART ONE

***FOIA sent on August 8, 2011 (Exhibit 29) requesting the Financial Reports from the Village of Johnsburg was responded to by the Freedom of Information Officer, Claudette Peters on August 17, 2011 (Exhibit 30) with the requested documents but the FOIA Officer stated that no documents exist for items 2,4,6,8,10,12,14,16,18,20,22,24,26,28. The items denied were the certified board minutes for the statutorily mandated Financial Reports for the Village of Johnsburg. Claudett Peters as the Clerk and or the Village of Director of Operations/Administrator does not have any minutes approving the Annual Reports tendered to the Illinois Comptroller, Annual Audits, and the Monthly Treasurer’s Report. The denial of the existence of minutes approving the statutorily mandated Reports for a taxing body has been sent to the Illinois Attorney General’s Office by and through the Public Access Counselor’s Office for initiation of Investigation as well as the Secretary of State’s Office of Local Records. The communication sent to Gloria Huston as an agent for the Archivist resulted in a letter informing the Haney’s (the Requesters of the FOIA’s) that the information should be turned over to the McHenry County States Attorney’s Office because it is a Class 4 Felony to tamper or destroy permanent records. (See Volume 1 Request for Investigation to McHenry County States Attorney)

Similarly, a FOIA was sent on October 3, 2011 (Exhibit 3) requesting the Financial Reports and Publications of the Collectors and the Treasurer along with a Certified copy of the Board minutes. The Freedom of Information Officer, Claudett Peters responded on behalf of the Village of Johnsburg with the publications but denied items 1 & 4 (item five was resubmitted and reworded). Item 2 was omitted which was the request for the Annual Treasurers Report. Items 1 & 4 were the Collectors Report and the subsequent Affidavit of the Collector.

Claudett Peters, as the Clerk of the Village of Johnsburg and the Freedom of Information Officer has committed a Class Four Felony by concealing, tampering and or disposing of the minutes according to the Local Records Act. (Exhibits 29 & 30)

CONCLUSION:

Claudett Peters as the Clerk of the Village of Johnsburg assumes that role as a pivot point to assume the other roles as the Comptroller/Collector, Director of Operations/Administrator, and the Treasurer which allows her to have complete control of all duties regarding the financial assets of the Village of Johnsburg. The “Clerk” position being withheld from the voters in Johnsburg is willfully being withheld by this “local election authority” so no one else can have access to the position. The Village of Johnsburg voters cannot remove Claudett Peters from office by the election process that is why intervention by the FBI and the US Attorneys Office is necessary. Claudette Peters as the Clerk of the Village of Johnsburg has violated the Illinois Statutes with regards to the accepting of the Annual Treasurer’s Report as well as the non-existing minutes or the concealed minutes according to Exhibits 29 & 30

For a clear snapshot of the corrupt movements, the author of this report focuses on the Annual Financial Report that is required to be sent to the Illinois State Comptroller as well as the corresponding County. Johnsburg Illinois is located within the County of McHenry. Freedom of Information Requests were sent to the Village of Johnsburg, the McHenry County Clerk and the Illinois State Comptroller’s office. All three requests were sent requesting the same information to verify that the identical data was being reported.

The McHenry County Clerk cannot locate an Annual Financial Report from the Village of Johnsburg for the 2008 Fiscal year (Volume 2 Exhibit 15). The difficulty in tracking the Financial Reporting of the Village of Johnsburg is due to the fact that deadlines are not met, corresponding minutes of Board Approval are non-existent and Fiscal years run into each other causing an erratic path of reporting.

*The 2006 Fiscal year presents the clear and convincing evidence that the Village of Johnsburg received Federal funds because they report it on their Annual Reports and in the Audit. The following discrepancies exist:

1. Fiscal year ends April 30, 2006

2. Due date for Annual Report, October 30, 2006

3. Report tendered to the Illinois State Comptroller on May 25, 2007

4. Report tendered to the McHenry County Clerk on June, 7, 2007

5. Reports sent to the Illinois State Comptroller and the McHenry County Clerk by Claudett Peters the Clerk/Treasurer

*The 2007 Fiscal year presents clear and convincing evidence that the Village of Johnsburg is not reporting accurately or factually because not only do the Annual Reports and the Audit differ but the following discrepancies exist:

The serious crimes that have been committed by the Village of Johnsburg identified by an Illinois citizen cannot be ignored or glossed over. These crimes continue as more State and Federal Funds are being sought after by the Village of Johnsburg. (See Volume 1, Village Board Report October 2011) If the Attorney for the Village of Johnsburg, the Auditor, the County of McHenry, and the OMB on the Federal level do not monitor these blatant acts then it is up to the Illinois State Comptroller, the Federal Bureau of Investigation and the United States Attorney to intervene on behalf of every citizen in the United States. The office of the State of Illinois Comptroller must initiate a Forensic Audit, take immediate steps to end this Financial Corruption, and work with the FBI and the US Attorney’s Office for the appropriate prosecutions.

The time frame for the Freedom of Information Requests was June through November of 2011. During that time, I had the occasion to speak to the Office of the State Comptroller. In the conversation I was informed that on July 27, 2011, an agent for the Village of Johnsburg had contacted the Office of the State Comptroller and requested that the Village have the opportunity to change the 2006 and 2007 Annual Financial Reports. I find it highly coincidental that it is those two (2) years (2006 and 2007) that show a clear picture of the Financial Crimes that the Village of Johnsburg has committed.

If this investigation and supporting documentation does not fit the definition of “Theft of Honest Services”, with the evidence of corruption, fiscal mismanagement and cover-up I do not know what case would.

If additional information is requested regarding the Illinois Attorney General’s Office, please contact John Schmidt, Senior Assistant Attorney General, 100 W. Randolph Street, Chicago Illinois 60601. If additional information is requested regarding the Secretary of State, please contact Gloria Huston, Archival Program Administration, Illinois State Archives, Margaret Cross Norton Building, 62756 Springfield Illinois. If additional information is requested regarding the Illinois Department of Revenue, please contact Loren Stouffe, Office of Local Government Services, Exemption Section Mail Code-3-520, 101 Jefferson Street, Springfield Illinois 62702.

The Local Records Act places ownership of the documents in the State of Illinois in the hands of every citizen. The guardianship of those documents rest in the elected officials during their term of office. These elected, appointed and hired officials from the Village of Johnsburg have proven that they are not good stewards with the public documents and finances and need to be prosecuted.

If a citizen in the State of Illinois can identify the obvious lack of internal controls, the Federal Fund Form A-133 missing from the Audit yet millions of dollars of Federal Funds mentioned in the Audit, and the numerous violations in the statutes, then certainly a licensed CPA in the State of Illinois should be able to obtain the same information. Therefore, this licensed CPA firm must be prosecuted to the fullest, there will be no “culture of corruption” if true and accurate reporting is achieved in the Audits of taxing bodies.

If the Volumes of evidence and summary have been compiled for a time frame of a few years, then the investigation must include a complete audit of the time frame that this one employee of the Village of Johnsburg has had access to public monies.

In closing, the recent adoption of Ordinance 11-12-13 is included in Volume 1. This Ordinance was adopted on October 18, 2011 for the purpose of authorizing a promissory note for $122,000. The Village of Johnsburg is a municipal corporation that is borrowing $122,000.00 from a resident to purchase property. (See Volume 1 Ordinance 11-12-13)

This information is being submitted to Congressman Joe Walsh, Cory Jobe, Deputy Chief of Staff, Illinois State Comptroller, Robert Grant, FBI and Patrick Fitzgerald, US Attorney. The contact information for the aforementioned recipients is as follows:

Congressman Joe Walsh Illinois State Comptroller

Attention Will Cronin Attention Cory Jobe

432 Cannon House Office Building Deputy Chief of Staff

Washington DC 20515 Comptroller Judy Barr Topinka

202-225-3711 201 Statehouse

202-225-7830 (fax) Springfield Illinois 62706

217-782-2478

217-524-3229 (fax)

Federal Bureau of Investigation US Attorney

Intake, Public Corruption Patrick Fitzgerald

2111 W. Roosevelt Road United States Attorney Office

Chicago Illinois 60608 Northern District of Illinois, Eastern Division

312-829-5732 (fax) Chicago Illinois 60604

312-829-5738 (fax) 312-353-5300

Charlene Bliss-Beyer

815-354-2267