TOWN REPORTS RECOVERED DRUG MONEY MISSPENT

Mooresville says youths traveled to 9-11 site in NYC, but rules
prohibit such expenses.

Mooresville has notified the U.S. Attorney's Office and the State
Bureau of Investigation that money recovered in drug investigations
may have been misspent by the Police Department's Cops for Kids
program. Town officials announced Friday that $4,862 had been used in
2002 to transport 37 youth and 21 chaperones to New York City to tour
the site of the 9-11 terrorist attacks.

The money isn't supposed to be used on travel, Town Attorney Steve
Gambill told the Observer.

An undisclosed amount of additional money paid for similar travel, an
ongoing inquiry has found, town officials said.

Town staff and an auditor hired by the town discovered the problem
while reviewing a financial spreadsheet in the Police Department,
Gambill said. Police Chief John Crone was suspended and later fired
this summer during the inquiry. Crone has maintained that he did
nothing wrong and that the matter may involve only sloppy
bookkeeping.

Under Crone, Cops for Kids accepted donations, held fundraisers and
sponsored educational field trips, a Christmas party with Santa and
other events to improve relations between police and young people in
the community. It was registered in 2001 as a nonprofit corporation
with the N.C. Department of the Secretary of State.

Maia Setzer, the town's director of administration and finance, has
supervised and directed the internal inquiry into Cops for Kids and
will continue to cooperate with the SBI as the agency continues its
investigation, Town Manager Steve Husemann said.

The town also has contracted with an accounting firm for a secondary
financial investigation. That audit will likely be completed in late
October, Husemann said.