A special investigation by the state auditor’s office indicates a former part-timer who worked for the Webster City Chamber of Commerce was responsible for $263,000 worth of payments that were either improper or lacked proper documentation.

Leah Mulholland was a financial and administrative assistant for the Webster City Chamber of Commerce. Auditors report she overpaid herself by about $190,000 over a four-and-a-half year period. Auditors flagged another $35,000 worth of spending to cover things like what auditors believe to be Mulholland’s personal cell phone bill, the purchase of a sex toy and $2,700 worth of hotel bills in Webster City.

The auditor’s report also mentions improper spending at a Webster City hair salon and for food and meals at restaurants.

According to the auditors’ report, Webster City Chamber of Commerce officials “did not provide sufficient oversight of the Chamber’s financial transactions.” The chamber’s board of directors has released a written statement, indicating “all recommendations” outlined in the auditors’ report already “have been implemented.”

The statement refers to an “ongoing criminal case” and goes on to say the “chamber board and staff are supporting and cooperating with the county attorney, the Iowa Division of Criminal Investigation, and Iowa attorney general’s office.”