Transportation official’s movie rental with city credit card was fraud, audit finds

Acting on a request they received last August, members of the Office of the City Auditor’s investigative team uncovered a trail of fraudulent behavior by Transportation and Public Works Department superintendent Michael Collier. In an audit report released last week, they said Collier falsified records related to his use of a city credit card.

As a superintendent in street and drainage operations, Collier used a city-issued credit card to purchase items for which the city had no contract, such as small tools and office supplies. Auditors noted that Collier previously had another city-issued credit card, which was “suspended because he failed to comply with the city’s credit card policies,” but they did not offer any further details.

Every month, employees with city-issued credit cards must provide receipts for their purchases through the city’s credit card system. The city does not pay sales tax in most instances, and so other employees are required to investigate whenever it appears that the city has been charged sales tax. That’s what caught the attention of someone reviewing Collier’s purchases.

Collier’s illegal purchase was a small one, for the rental of an action movie in the “John Wick” series, starring Keanu Reeves. The cost of that rental was just $5.99 and the tax was $0.49, for a total of $6.48.

In order to cover up the purchase, Collier printed out the receipt with the title of the movie blacked out. However, auditors noted that he did not remove the names of the director and actors. Collier described the movie as “Safety reminders for crew during the HOT season.” This did not convince the department’s accounts payable employee, whose job was to review credit card documentation. That employee asked Collier for another copy of the receipt without the blacked-out portion, auditors noted in their report.

In his second receipt, Collier altered the title to read “Work Place Shooter Safety Awareness.” He also altered several other entries on the receipt, changing prices for the item amount, subtotal and sales tax. Auditors noted that this made the receipt appear to show that there was no sales tax. He attached an email to the accounts payable employee, explaining that the video was needed because “employees had experienced violence in the streets and one driver was held up by a citizen.”

Auditors said that when they spoke to Collier he at first denied that he had used the city-issued credit card to purchase the “John Wick” movie. His next defense was that a family member had purchased the movie. He eventually admitted that the family member did not have access to the city’s credit card.

Later in a conversation with auditors, Collier admitted altering the first receipt and told auditors that he did so because he was “embarrassed and planned to contact the online retailer about the transaction. When discussing the alteration of the second receipt, Collier initially denied altering any information and then, after admitting to changing the purchase title, denied that he changed the prices.” After being presented further evidence, Collier admitted to making all of the alterations, according to the audit.

“Collier said he continued to withhold information from the financial staff because he had since repaid the city for the cost of the movie and hoped the issue would go away,” auditors wrote.

The issue obviously did not go away. And auditors were called in to investigate what they determined to be misuse of city resources, misappropriation of funds and intentional improper reporting of money or a financial transaction.

In his response to the audit, Collier was extremely apologetic. He wrote, “I am writing to express my sincere apologies for the recent incident involving the misuse, error, fraud, mistake, with a Pro-Card purchasing credit card.

“I take full responsibility for the $5.99 that was repaid and understand the seriousness of the situation. It was not my intention to cause any harm or convenience to anyone. I tried to make this right before the panic ensued.”

He noted that he no longer has access to the city’s credit card, adding, “I will use this experience to help others with direction if they run into this problem.”

Richard Mendoza, director of TPW, wrote in his response that the department “takes matters of fraud seriously and agrees with the findings stated in the report. TPW will take appropriate disciplinary action based on the findings.”

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