Karen Lakey, former Motorsports Hall of Fame Commission accounts manager, allegedly stole $236,610 from the commission, according to a recent audit.
The theft was revealed in an audit released by the Alabama Department of Public Examiners on Friday that detailed numerous improprieties and is being investigated by the Attorney General's Office.
"Fortunately for us the examiners came in when they did or I don't know when we would have caught her. We had all kinds of stop gap measures in place to keep that from happening such as it took two signatures on the check if it's over a certain amount," Former State Sen. Gerald Dial, Motorsports Hall of Fame board chairman, told 1819 News on Friday. "She was just smarter than we were. She electronically transferred money to herself. She wrote smaller checks and she circumvented the system and thanks to the examiners she's caught and they'll prosecute her."
He continued, "It looks bad on the commission. The commission basically trusted someone who we thought could do the job and do it well for us and it didn't work that way. We've already made changes based on the examiners. We've gone back to hiring a full-time state employee, our executive director went on board October 1, Adam Stocks. He's well on his way to correcting everyone of the commission's (report findings)."
"The attorney general will deal with the lady. It's just unfortunate," Dial added. "I apologize to the people of the state of Alabama. I take a lot of responsibility as the chairman of the board and let me assure them that all of these shortfalls are being corrected and we'll be stronger and better afterwards."
Other findings from the report include a former Motorsports Hall of Fame executive director purchasing a 1968 Camaro Convertible pace car from the commission for $15,000 in April 2023. The Commission indicated to auditors that the vehicle was advertised for bid, and the former executive director was the only individual who bid on the vehicle. The Commission provided an advertisement in a local newspaper that advertising bids were being accepted for a "1968 Chevrolet." The advertisement provided no additional information regarding the car, including the model, according to the audit.
The advertisement appeared in a newspaper in December 2021, and 16 months later, the former executive director paid for the automobile. Subsequent to the advertisement and prior to the former executive director's payment, repairs to the vehicle were completed, totaling $27,917.72. Of this amount, $22,917.72 was verified as having been paid from commission funds, according to the audit.
The spouse of the former executive director also purchased a 1998 Ford F-150 truck from the Commission for $1,000.00 in March 2024. The Commission indicated the vehicle was advertised for bid, and the spouse of the former executive director was the only individual who bid on the vehicle. Documentation that the truck was advertised was provided by the Commission. However, the advertisement did not include any information on the truck other than that bids were being taken for a "1998 Ford Truck, as is."
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.
