A notorious criminal who robbed a Mason City credit union two years ago and committed other crimes in Nebraska and across the western United States -may- be in custody. In 2012 and 2014, a man the FBI called the “AK-47 Bandit” robbed several banks, as well as shot and wounded a police officer in Chino, California. 39-year-old Richard Gathercole was arrested last week in Dawson County, Nebraska after allegedly firing shots from an AK-47 rifle at a Kansas state trooper.

FBI Los Angeles spokeswoman Laura Eimiller says numerous agencies are investigating whether evidence found in the search of a Roundup, Montana home is linked to the suspect. A jailhouse phone call transcript submitted to a judge by federal officials seeking a search warrant for the Montana home shows Gathercole asked his mother a few days after his arrest to clear his home of guns. Federal agents say homemade bombs were found at the home.

Court documents show that Gathercole is accused of stealing $126-thousand from the Iowa Heartland Credit Union in Mason City on July 28th, 2015 after informing tellers he had a “pressure bomb.”

(Radio Iowa)

Auditor of State Mary Mosiman today (Tuesday), released a report on a special investigation of the City of Harlan for the period July 1, 2004 through June 30, 2016. The special investigation was requested by City officials as a result of concerns regarding certain travel reimbursements issued to the former City Administrator, Terry Cox.

Mosiman reported the special investigation identified $144,872.32 of improper and unsupported disbursements. In addition, Mosiman reported the City frequently provided meals, snacks, and/or drinks for City Committee, City Council, or City employee meetings involving volunteers from the community. However, the City does not have a written policy addressing the public purpose of such disbursements. For the period June 1, 2011 through June 30, 2016, $5,703.61 of disbursements for food, drinks, snacks, decorations, and plastic dinnerware were identified for which there is no documentation of the public purpose served.

The $123,543.67 of improper disbursements identified includes $33,953.88 of payments issued to Mr. Cox for travel reimbursements primarily for excess mileage claimed, expenses reimbursed by third parties, expenses for events not attended or for events which provided no public benefit, expenses supported by altered documentation, and alcoholic beverages included on meal receipts.

In addition, Mosiman reported the improper disbursements identified include $35,197.60 of payroll checks issued to Mr. Cox for hours recorded on the payroll register which Mr. Cox did not work. The City incurred additional FICA and IPERS contributions for the improper payroll totaling $5,501.30.
The improper disbursements identified also include:
• a $9,457.60 vacation payout issued to Mr. Cox which he was not entitled to,
• $12,600.00 of payments issued to Mr. Cox for a monthly car allowance, which was previously discontinued,
• $1,315.88 of unauthorized salary issued to Mr. Cox,

• $15,364.72 of payments to vendors,
• $4,811.78 of purchases made on the City credit card issued to Mr. Cox,
• $1,792.48 of purchases made on another City credit card,
• $114.51 of fees including finance charges, late fees, and foreign transaction fees on City credit cards,
• $1,055.00 of payments issued on behalf of City employees for eyeglasses, which did not comply with the City’s policy, and
• $169.85 of payments issued to Harlan Municipal Utilities for the HBO Multiplex package for Mr. Cox’s office included with the cable television services provided at City Hall.

In addition, because the payments issued to Mr. Cox were processed through the City’s payroll system, the City incurred additional FICA and, in some cases, IPERS contributions for the improper payouts, car allowance, and salary totaling $1,788.06 and $112.40, respectively. Although limited records were available for the period prior to July 1, 2004, an additional $308.61 of improper disbursements for the period November 1, 1999 through June 29, 2001 were identified for improper purchases made on the City fuel card issued to Mr. Cox.

Mosiman reported the $21,328.65 of unsupported disbursements identified includes:
• $15,391.26 of reimbursements for Mr. Cox,
• $3,111.15 of purchases made on the City credit card issued to Mr. Cox, and
• $2,826.24 of purchases made on another City credit card.

In addition, Mosiman reported it was not possible to determine if additional amounts were improperly disbursed because adequate documentation was not available.
The report includes recommendations to strengthen the City’s internal controls, such as improvements to segregation of duties, performing independent review of utility billings, collections, and delinquencies, and ensuring all disbursements are properly supported, approved, and paid in a timely manner.

Copies of the report have been filed with the Iowa Division of Criminal Investigation, the Shelby County Attorney’s Office, and the Iowa Attorney General’s Office. A copy of the report is available for review in the Office of Auditor of State and on the Auditor of State’s web site at https://auditor.iowa.gov/reports/1620-0790-BE00.

Five people were arrested on separate charges over the past week, in Mills County. Sheriff’s officials say 32-year old Moo Gay, of Omaha, was arrested June 22nd, for Possession of a Controlled Substance. His bond was set at $1,000.

On Monday, June 26th, 40-year old Richard William Finn, of Pacific Junction, 26-year old Dylan Michael Frazier, of Malvern, and 37-year old Sara Alayne Johnson, of Glenwood, were each arrested for Driving Under Suspension. Their bonds were set at $300 each. And, 21-year old Kayla Shae Richardson, of Glenwood, was arrested Monday at the Mills County Sheriff’s Office, on a warrant for Failure to Appear in Court on an “other” Violation, or Chapter 321a of the Iowa Code (Motor Vehicle Financial responsibility). Her bond was set at $2,000.

The Page County Sheriff’s Office reports a man was arrested last week on an assault charge. 22-year old Travis Cole Sunderman, of Clarinda, was taken into custody the evening of June 22nd, on a Page County on a warrant for Domestic Abuse Assault/1st Offense.  Sunderman was transported to the Page County Jail. He posted a $300 bond the following day and was released pending further court proceedings.

Travis C. Sunderman

SIOUX CITY, Iowa (AP) – A longtime Sioux City transit bus driver has pleaded not guilty to a charge of operating under the influence. Court records say 64-year-old Howard Barrett entered the plea Monday. A pretrial conference is scheduled for Aug. 25.

Authorities say police stopped Barrett in a parking lot on June 15 while he was still on the clock for Sioux City Transit. Police say a preliminary breath test showed Barrett had a blood alcohol concentration over the limit of 0.08 percent.

City Attorney Nicole DuBois says Barrett submitted his retirement papers the following day. Barrett joined the city staff in 1983.