Executive With Nebraskan State-Tied Company Embezzles, Gambles Away $760K

Article by : Erik Gibbs Aug 10, 2023

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In a recent state audit in Nebraska, it was discovered that a former North Fork Area Transit Agency general manager misrepresented his time sheets. By doing so, the now-former general manager of the institution filed for a reimbursement which included items that were never delivered and struck as inconsistent. The total amount of embezzlement has been estimated at around $740,000.

According to the audit, Jeffrey Stewart spent a significant amount of time during working hours at two casinos in Iowa. He also made sizable wire transfers at the site and even managed to withdraw over $35,000 as part of the budget covering a paid family trip to Florida.

State Auditor Mike Foley reported that his auditors discovered outstanding and evident breaches of the law within the scope of any reasonable understanding of management best practices and codes.

While the team continues to build the case against the former manager, prosecutors will be provided with a forensic audit as part of the legal process. According to the audit report, Stewart might have also forged documents and misused public records. This all came to light right after the suspect was detained last month in Texas.

Yet, plans were already being executed by Stewart to flee the authorities. An investigation into alleged manipulation of the agency’s funds had already begun in early December. By that time, Stewart had left for Mexico.

According to the audit results, the total sum of the funds embezzled by Stewart has reached $740,000. According to various local sources, the missing funds led the transit agency to halt operations in January.

The organization was able to reopen this spring thanks to donations received from nearby communities. Some of the money collected during this period even came from the foundation of Norfolk native Johnny Carson.

The Nebraska Department of Transportation is the organization’s principal provider in terms of funding. However, Madison County and the City of Norfolk contribute money to sustain the agency’s operation.

What authorities still find amusing is how Stewart might have initially intended for his embezzlement to stick after a sustained period. With the audit, the details finally came to light, and they currently stand as firm evidence for what seems an unavoidable conviction.

One of the points that still shocks the auditors is the false time sheets. These were used to request reimbursement from the state, county, and municipal authorities requesting payment for services that had never been provided.