Baltimore Lost More Than $480K To Auction Company, According To New OIG Report

3 years ago 389

BALTIMORE (WJZ) — Baltimore mislaid retired connected $480,000 from a institution that auctioned vehicles for the metropolis aft the vendor failed to taxable each the gross it collected, according to a caller study from the Office of the Inspector General.

The institution was awarded a municipal declaration successful 2012 but continued to auction disconnected vehicles for the Department of Transportation and Department of General Services aft the statement expired and was not renewed by the Board of Estimates, the study said.

In 2019, the Law Department filed a suit against the institution for $575,299 successful missing gross from 4 auctions the twelvemonth anterior and received a bid of “good faith” payments totaling $70,000. After delays, the metropolis past May agreed to judge $25,000 to disregard the lawsuit.

City Solicitor James L. Shea, successful a effect letter, said the metropolis took the smaller colony aft the proprietor of the company, who lives retired of state, threatened to state bankruptcy successful Virginia.

The study elaborate a “lack of controls” implicit the statement with the auction company, specified arsenic letting the concern cod and deposit bids–mostly paid successful cash–without metropolis oversight and missing records connected some the portion of the auctioneer and metropolis agencies.

The auction company, which goes unnamed successful the report, besides deposited proceeds into its ain account, alternatively than a metropolis account, the study said.

According to the report, the politician appoints members to the three-person Auction Advisory Board to interrogation applicants and o.k. licenses to behaviour auctions successful the city. The committee tin besides analyse immoderate auctioneers who violates metropolis code.

But erstwhile Baltimore City agencies requested a proceeding to revoke the licence of the auction institution successful question, the committee did not person 3 members, and the “de facto chairperson” was a mentor to the proprietor of the auction institution and erstwhile employee.

With his licence inactive intact, the proprietor of the auction institution continued to clasp backstage auctions successful the city, the study said.

Shea agreed successful his missive that the metropolis needs to amended oversight of contracts to auction metropolis spot and said caller Auction Advisory Board members indispensable beryllium appointed by the politician and approved by the metropolis council.

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He besides suggested raising the interest for an auction licence to $500,000.