Correction: At the time aired, Channel 6 incorrectly stated that the Coryell County Sheriffs Office is looking into the matter. The Lampasas County Sheriff's Office is the investigating agency.
Lampasas District Clerk Cody Reed was accused of using an unauthorized Lampasas County credit card by Lampasas County Treasurer Nelda DeRiso two weeks ago. DeRiso said the Lampasas County Commissioners Court decided to cancel the card at a meeting on Monday, February 12th.
Despite that decision, Cody Reed's attorney, James Stapler, told Channel 6 Saturday, Feb. 17, that it was a personal card Reed opened with his own social security number and not a county card.
How is that possible?
It turns out, Reed was able to obtain a card connected to Lampasas County by using the county's tax ID number. Documents Channel 6 News obtained with an Open Records Request prove Reed obtained a business card backed by county credit from First State Bank Central Texas. The billing statements went to Reed's office, not the county auditors office where official county card statements are kept.
Treasurer Nelda DeRiso said Lampasas County only found out about the card after getting an interest charge from the bank associated with Reed's card. DeRiso provided Channel 6 with the documents and an explanation of what happened on Friday, Feb/ 23. Channel 6 had also contacted Lampasas County about the issue on Feb. 16, but DeRiso was not available and County Auditor Chris Munn refused to answer questions related to Reed's card.
Cody Reed's Attorney, James Stapler, told Channel 6 on Saturday, Feb. 17 the card was connected to Reeds social security number. When Channel 6 later confronted Stapler with the documents showing the card was connected to the county tax ID, Stapler claimed the bank made the error.
"The bank filled out the application. He [Reed] provided his social security number to secure the card. I believe the bank inserted county ID. It was not an issue at the time," Stapler said.
Stapler said Reed still signed the application with the county tax ID. Channel 6 News Legal Analyst Liz Mitchell said using a county tax ID for a personal card, without any authorization from the county, may not be illegal but should be a violation of county procedure.
"If they are unable to pinpoint any law that has been broken, I would say this is kind of a failure of procedure in checks and balances. A county official shouldn't be able to secure a card on their own accord without going through proper channels when using taxpayer dollars for purchases," Mitchell said. "Personal information and funds are being commingled with information from the county... the tax ID number and filing for a nonprofit card."
While the card did not connect to taxpayer dollars directly, it did make the county liable for late fees and interest charges. Treasurer Nelda DeRiso told Channel 6 last week the card was canceled on February 16th due to the fact that county procedures were not followed. When Channel 6 asked Stapler about the card being canceled, he did not claim to know otherwise.
"I don’t know what the current status of the card is. They may have been able to cancel it or remove county liability," Stapler said.
The Lampasas County Sheriff's Office is currently looking into the matter.
Given that Lampasas County District Clerk Cody Reed signed for a card connected to the county tax ID, and made the county liable for charges, without any consent from Lampasas County, and given that the lack of procedure contributed to the card's termination, Channel 6 News can verify that Cody Reed misused the Lampasas County tax ID number.
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