Money taken in fraud scheme being recouped via variety of measures.

http://www.news-leader.com/article/20110210/NEWS01/102100363/Nixa-working-recover-stolen-funds?odyssey=mod%7Cnewswell%7Ctext%7COzarks%20News%7Cs

Nixa -- The city of Nixa is beginning to refill a hole left in its budget after former city employees defrauded the city of more than $757,000.

Nixa Police Chief James Bacon said the city has used a variety of measures to recoup $213,613 of the stolen funds.

Larry Covington, who was Nixa's street department supervisor from 2004-2009, and former city utility worker David Griggs last year admitted writing fraudulent invoices from fake companies to the city, then pocketing the money.

Covington pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, theft from an organization receiving federal funds and mail fraud. He was sentenced to nine years in federal prison without parole and ordered to pay more than $750,000 in restitution to the city.

His wife, Paula Covington, pleaded guilty to money laundering and was sentenced to one year and one day in prison.

Griggs pleaded guilty to conspiracy to commit mail fraud and money laundering and theft from an organization receiving federal funds. He was sentenced to two years and eight months in prison and ordered to pay $272,718 in restitution.

The city has been able to collect the money through a $100,000 insurance settlement, $60,000 in seized property, Covington's retirement fund and an auction, Bacon said.

Last month, the city auctioned off items from Larry and Paula Covington's estate, which included guns, ammunition, four-wheelers, commercial kitchen equipment and tools.

Bacon said the city made $56,046 from the auction, which will be reported to the court as part of Larry Covington's restitution.

The city also received $1,320 in restitution payments from Griggs before he went to prison, Bacon said.

Mayor Sam Clifton said he was happy with any amount the city will be able to recoup.

"We're fortunate for what we got at this point," Clifton said. "But I don't think we're going to get much more out of it."

Bacon said the city will see more restitution collected soon. A couple of bank accounts were seized, but paperwork on the action has not been completed yet, he said.

There's also other property in the custody of the U.S. Marshals Service that will be sold and reported to the city, Bacon said.

Clifton said he doesn't see the city collecting much more, but any little bit will help.

The money that is collected will go back into the street department fund, he said. However, it won't be a significant amount that will make a big difference.

"Maybe we'll be able to patch a few more potholes this year, but it's not going to build us a street," he said.