CASTLE ROCK, Colo. - The director of the Douglas County School District's Transportation Department resigned following a CALL7 Investigation into his department's spending.
Former director Paul Balon admitted to CALL7 Investigator John Ferrugia that district money had paid for a Sam's Club membership that listed 19 people. The list included Balon's wife and another non-employee who used the membership to purchase personal items.
Ferrugia asked Balon during a previous interview, "Why are you paying for their memberships?"
"Shouldn't have been," he said.
In addition to learning of Balon's departure from the district, Ferrugia has learned the district does not know how many district Sam's Club cards exist or if the cardholders paid taxes on the items they bought.
7NEWS reported last week that the district stopped all purchases on the memberships and sent a letter to Walmart asking their legal department to provide information about all membership cards listed under the district's tax-exempt ID number.
"We are requesting a detailed record for each of the primary cardholders that are associated with our tax exempt number and all memberships associated under the primary cardholder," the letter says.
It continues, "In the course of an investigation into the possible misuse of the district's tax exempt status for personal use, we have requested a detailed item summary for purchases made by each member, and if possible, to demonstrate whether sales tax was paid on the items purchased."
The letter mirrors the public records request Ferrugia made to the district.
With more than 80 schools in the district and several other departments, sources tell Ferrugia that the number of primary memberships could be over 100.