Galveston City Administrator Brian Maxwell’s memo sheds light on the length and lack of cooperation in the Parks Department’s fraud investigation

GALVESTON, Texas (KTRK) – ABC13 obtained new documents showing that the Galveston Police Chief fears that a parks department employee’s lack of cooperation may have led to significantly more money being stolen.

Concerns related to the investigation of a Parks Department employee

The flood isn’t the only thing approaching Galveston Island. An investigation into potentially stolen private and public funds is growing more serious.

Last week, 13 Investigates learned that a Galveston Park Board employee was accused of stealing from the Galveston Lifeguard Association, Inc. and possibly misusing city funds.

The committee told ABC13 the discovery was made a month ago. Galveston police also told ABC13 a report was filed more than seven months ago.

New details from a memo obtained by ABC13 show that officials want more access, which could explain why no arrests have been made.

“I’m surprised there isn’t a lot of cheating in Galveston,” said city resident Terry Mcauliffe.

Was more money stolen due to a lack of cooperation?

The memo was sent on May 30 by City Manager Brian Maxwell to Galveston Park Board CEO Kimberly Danesi.

The city manager said the police chief had informed him “that the initial investigation had stalled due to a lack of cooperation and that as a result it appears that the amount stolen has increased significantly and may now involve both public and private funds. He is concerned that further delays will hamper the investigation and potentially result in further losses.”

The city manager added that they wanted to send a detective to the parks department, but Galveston Beach Patrol Chief Peter Davis turned him down.

“(Galveston Police Chief Doug Balli) offered to have Det. Larson contact the Park Department to begin investigating the theft of public funds. However, the offer was declined. Police Chief Davis advised that he would follow up with Police Chief Balli regarding the offer and that the Park Department was not yet ready to submit an official report,” the memo states.

The city manager said the police chief raised concerns about whether the parks department planned to inform the city council about the possible misuse of public funds.

“Chief Davis did not elaborate on whether the Parks Department intended to notify the city. However, he expressed concern that for some reason we should know by now,” Maxwell wrote.

The full memo below:

What 13 Investigates knows about the alleged theft

The park administration announced that the Galveston Lifeguard Association had lost $40,000. The money disappeared from ATMs in Galveston, Lake Charles, Oklahoma and Las Vegas.

When the parks department found out, they placed the person on unpaid leave. Since then, they have been notified of possible misuse of a city credit card.

It is unclear how much city money may have been misused.

ABC13 asked Davis if the employee had access to the lifeguard association’s credit card after the investigation began in December. ABC13 also asked why it took six months for park management to be notified.

There is no response yet from Eyewitness News.

“It’s kind of unbelievable,” Mcauliffe said. “This is a tourist town, and with the lifeguards, everyone seems to have everything under control.”

So far, the authorities have not arrested anyone.

The parks department sent ABC13 a statement from Danesi, CEO of the Galveston Parks Department:

“On May 15, Galveston Park Board leadership was made aware of suspected credit card fraud by a Beach Patrol employee using a card from Galveston Lifeguarding, Incorporated, a nonprofit corporation. The Park Board took immediate action and placed the employee allegedly involved on unpaid administrative leave. Although we are a separate organization, we decided to review our financial records to ensure all funds were properly accounted for. In doing so, we discovered that the same employee may have misused a Beach Patrol credit card. We immediately suspended the card to ensure it is not used again. We are conducting our own internal investigation and will share all relevant information with the Galveston Police Department.”

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READ MORE: $40,000 missing from Galveston lifeguard group, sparking multiple investigations