Advertisement
YOU ARE HERE: KY3 HomeCollectionsNixa

Auction of embezzlers' property raised $56,000 for City of Nixa

February 09, 2011|by KY3 News | newsalerts@ky3.com

NIXA, Mo. -- An auction on Jan. 29 of property seized from Larry and and Paula Covington raised $60,621.  The Covingtons are two of the three people who are serving federal prison terms for embezzling about $750,000 from the City of Nixa.

The city sold the Covingtons' property to recoup some of its losses.  The auction company collected $4,574 for its commission and expenses, leaving the city with $56,046.

In a news release, the City of Nixa said its Public Works Department is using some of the items that were seized from the Covingtons.  Those include a battery charger, an electric grinder, an electric welder, a tool box, a folding ladder, and some other tools and hardware.  The value of those items is about $2,800.

Nixa has also received about $52,000 from Larry Covington's retirement account.  That means the total amount of restitution credited to the Covingtons is $112,293.  Parts of the embezzlers' sentences are to make restitution of the full $750,000.  The Covingtons' co-defendant, David Griggs, has paid $1,320 in restitution. 

Advertisement

The city also received a $100,000 insurance settlement for its losses.  It anticipates receiving more restitution from bank accounts that were seized and the sale of some more property that was seized. 

Larry Covington was the city's street department director before the scheme was uncovered.  Griggs worked for Covington in the street department.  Paula Covington helped with the scheme, which involved fake invoices for goods and services never delivered to the city.  Larry Covington okayed payments to the fictional companies on the invoices.  The three of them pleaded guilty to the crimes last year in U.S. District Court in Springfield.

----

Photo gallery of the auctioned items

KY3 Articles
|
|
|