A summer jobs program for disadvantaged East St. Louis Township
youths was fleeced by two township officials to cover township bills and illegal
credit card payments.
Former township supervisor Oliver Hamilton and his sister June Hamilton Dean, a
former township financial consultant, diverted nearly $1 million in funds
intended for the program. At least $200,000 came in the form of fraudulent
loans, according to a Belleville News-Democrat investigation.
Records examined by the Belleville News-Democrat show that between 2013-2014,
the Illinois Department of Natural Resources, or IDNR, awarded East St. Louis
Township $634,800 in grants for a youth employment program. However, the
investigation discovered that only around $232,600 found its way to the program.
Although these funds were intended for the program, most were transferred to the
township’s general operating fund and used to pay for township expenses such as
payroll and employer taxes, the investigation found.
A 2016 Belleville News-Democrat investigation found that Hamilton had spent more
than $230,000 over a four-year period using a township American Express card.
The investigation revealed that Hamilton had spent township dollars on
“questionable purchases” such as trips to Las Vegas, supplies for his business,
gasoline, car washes, and donations to friends.
Hamilton is currently serving a five-year prison sentence for wire fraud.
Hamilton Dean was charged with felony bank fraud in October 2017. Both were
among seven Metro East public officials arrested in December 2016 on corruption
charges.
Weeks before receiving the first state grant payment, Hamilton and Hamilton Dean
took out a $200,000 loan from First Illinois Bank in 2013, fabricating the
township board’s authorization. Using the loan, the former officials created the
Township Summer Youth Employment Fund, over which the two had exclusive access,
according to the Belleville News-Democrat’s investigation. In 2014, an
additional $100,000 was transferred to the account from a township certificate
of deposit without the township’s knowledge.
According to the township, board officials were unaware of the account for the
full duration of the two-year program, during which funds were routinely
funneled from the account to the township’s general fund, often to cover illegal
credit card purchases.
Ultimately, Hamilton and Hamilton Dean gained access to nearly $1 million,
according to the Belleville News-Democrat.
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Transferring money from the Township Summer Youth
Employment Fund account into the township’s fund was often as simple
as making a single phone call to First Illinois Bank, according to
the Belleville News-Democrat.
The Illinois Youth Recreation Corps, or IYRC, was established in
2012 with the aim of supporting summer jobs for underprivileged
Illinois youths. Overseen by the IDNR, the program offered seasonal
jobs with a focus on conservation and recreation.
But for program participants in East St. Louis
Township, a number of the jobs assigned under the purview of the
IYRC were instead performed either in the township office or for a
private company owned by Hamilton. Despite a contractual provision
barring township officials from personally benefitting from the
program, 31 youths were assigned work at Hamilton Construction and
Hamilton Learning Center, owned by Hamilton and Hamilton Dean,
respectively.
The program also barred administrators from financially benefiting
from the IYRC program. But Hamilton Dean received two personal
checks throughout the course of the two-year program. She received a
$2,500 check from the 2013 grant as a “grant writer” in 2013, and a
check for more than $6,900 from the township general fund with
“youth grant 2014” written in the memo line in 2014, according to
the Belleville News-Democrat.
The state and the township agreed to a monthly installment plan to
repay unused funds in March 2015, after the state discontinued the
program. The township has repaid a portion of the IDNR grants, as
well as Hamilton and Hamilton Dean’s initial $200,000 loan,
according to the Belleville News-Democrat. However, the township,
and therefore East St. Louis Township taxpayers, still owe the state
roughly $120,000.
More than 40 percent of the township’s residents live below the
poverty line, according to the Belleville News-Democrat. That two
public officials plundered funds devoted to youth job preparation
from a community that could especially use it only heightens the
scandal.
The St. Clair County State’s Attorney is currently pursuing a
criminal investigation against the township’s mismanagement of the
IYRC program. The attorney’s findings will have to wait, but
transparency and accountability in local government ought to be
delivered with urgency.
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