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Commission amends minutes to clarify bank‑fraud recoveries after staff outlines recoupment and insurance payout
Summary
After discussion, the commission amended June 9 minutes to clarify that the city 'recouped' — not fully 'recovered' — funds from a $1.76 million bank fraud, detailing that investigators and insurance actions recouped roughly 98% and left an unrecovered balance addressed through insurance and deductibles.
The Pittsburg City Commission on June 23 voted to amend minutes from its June 9 meeting to clarify wording about a prior bank‑fraud loss, following a detailed staff explanation of recoveries, insurance payments and remaining shortfalls.
A commissioner requested the item be pulled so the minutes would more accurately reflect what transpired. City staff walked commissioners through the accounting: the initial fraudulent transfers totaled about $1.76 million, early recoveries and account freezes produced roughly $1,495,986.07 recouped, and an insurance interaction resulted in calculations that left a net reimbursable loss figure of about $214,504. The city had an insurance policy payment and a deductible/credit sequence that ultimately left a deductible adjustment and a final return to the insurer; staff summarized the net outcome as having recouped roughly 98% of the total loss when combining recoveries and insurance proceeds.
"We recouped roughly 98% of it between the hard work of investigators getting our money back and the insurance policy," one staff member explained, and commissioners agreed the minutes should use "recoup" rather than "recover" to avoid overstating the outcome.
Commissioners also requested a clearer breakdown of amounts paid, recovered, and any remaining differences; staff indicated an outstanding insurance accounting detail of roughly $14,000 had been reconciled in communications with the insurer and with staff. The commission approved the amended minutes by roll call vote.
