NG Articles on CUPHD, Palazzolo, Whistle-Blower

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This is old, but here are copies of last weekend's stories from the News-Gazette about the CUPHD. 

The first article is about Director Vito Palazzolo, who is on paid leave from the District:

It was allegations of financial impropriety with public funds that led to an emergency decision to place Champaign-Urbana Public Health District Executive Director Vito Palazzolo on paid leave nearly three months ago.

Since then, Palazzolo has been collecting more than $9,000 a month in salary.

"Sadly, we're paying him for doing nothing," said health district board member C. Pius Weibel.

The three-member health district board is scheduled to meet on Aug. 6 to decide not only whether to dismiss Palazzolo but also whether to refer misconduct allegations to criminal investigators for possible prosecution.

Board members have been loathe to release to the public details about their inquiry. But interviews with present and former health district officials and documents obtained by The News-Gazette indicate Palazzolo may have:

- Used his district-issued credit card for personal expenditures, including numerous meals at restaurants both in and out of state and frequent coffee outings to Cafe Kopi and Starbucks.

- Violated health district policy by purchasing high-end items without authorization from the district's board, including a pickup truck costing between $25,000 and $30,000 and a $619 tool kit at Lowe's that is not part of the district's inventory. Board members are investigating whether Palazzolo used the truck as a personal vehicle and kept it fueled with the district's credit card.

- Violated the district's nepotism policy by living with a female health district employee at a residence in Westville. The woman involved, Tamie Nagrodski, was hired and quickly promoted during Palazzolo's short tenure there.

- Indulged personal tastes by purchasing two big-screen, high-definition televisions for the conference room and his personal office at district offices.

The second article is about the whistle-blower being fired/resigning:

Shelley Scott feared she might be jeopardizing her job as director of finance at the Champaign-Urbana Public Health District when she blew the whistle on thousands of dollars in suspected financial improprieties by her boss.

She was right. Two weeks later, on May 11, Scott, a certified public accountant who had worked for the health district for roughly 18 months, was out of a job.

Versions differ between Scott and the three-member health district board about what happened. The health district contends she resigned. Scott, who lives in Mahomet and is married to a Champaign-based FBI agent, insists she was fired in retaliation for reporting misdeeds that prompted board members to place health district executive director Vito Palazzolo on paid leave while they investigated.

The health district board has scheduled an Aug. 6 meeting to discuss Palazzolo's future. The board also could request a criminal investigation of questionable spending decisions he made while heading the district from January 2006 to May 2007.

Palazzolo is collecting nearly $9,300 a month while on paid leave. Meanwhile, Scott recently was found eligible for unemployment compensation based on her claim of discharge. The health district board voted this week to appeal the state's decision to award Scott unemployment compensation.

The swirl of events has left Scott disappointed but philosophical about her decision to report the suspected misdeeds.

"I don't see that I had any alternative," she said.

But she also is concerned that the public will not receive a full accounting of what transpired during Palazzolo's tenure at the health district and is determined not to let that happen.

"Now what I think is that they still need to be held accountable," Scott said, referring to health district operations.

The health district board is made up of C. Pius Weibel, chairman of the Champaign County Board; Linda Abernathy, supervisor of the City of Champaign Township; and Carol Elliott, supervisor of Cunningham Township.

I normally wouldn't make articles available this way - I got them through the library's archive services, but for some inexplicable reason, the NG hasn't ever put these up on their website.  As a result, since they're not asking $2.95 per article, I'm sharing PDFs of them here.  I also think these two articles are an excellent example of the fantastic role that the NG and its reporters can play in reporting and publishing local news, rather than 48-hours-old AP wire stories.

Please read both articles and discuss.

UPDATE:  Link to second article now fixed.  Sorry!

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IP, Thought you might like to know the 'First article' and 'Second article' links are to the same article.  Would really like to know the rationale for firing a whistleblower or pressuring someone to resign.  Both incidents reflect poorly on the County.

IlliniPundit's picture

Link fixed now.  Sorry!

There is far more behind the story of the "whistleblower".  Jim Dey needs to speak to get the other side of the story.  What could have been incredible reporting has stopped short.  Get the rest of the story.  A true whistleblower does not participate in the corruption and let things accumulate for over a year and a half before doing anything.  In most companies and government jobs, it is the responsibility of the director of finance to stop such actions immediately.  This type of behavior should have been reported at the moment it was discovered....not saved up for when it suited her purposes.  Jim Dey needs to keep the story going.  There is much more.

RexBradfield's picture

Ghost,

The employee in question was the mom of oneof my campaign managers. She was just doing the correct thing and the article does not reflect the anguish she went through before she made her decision. Not everyone has such integrity.

Be careful CUPHD is not a county agency, but a private business. The County has its own Health District, but CUPHD is contracted by them to do much of the work.

To show you how dumb these people are, CUPHD also received Federal Government Grants and they are being so so so nasty to her. Her husband is a FBI Agent, and the FBI investigates misuse of Federal Funds including Grants.

Talk about tugging on Superman's Cape.!!!!! WOW!!!!

To that end, I am, and shall always remain;
Rex Bradfield

Suited what purpose?  Getting fired?

I'll trust the word of a respected reporter over an anonymous poster spreading falsehoods any day.

Reminds me of a commander-in-chief who thinks he can do anything and break any law and punish whoever stands against him.

I say "you go girl," and thank you for doing the right thing!  What goes around comes around and their wrongdoing will come back to them in one fashion or another, if not here, then in the hereafter.  God doesn't like ugly and seems to repay those who prey upon the poor and meek.  Especially those who do their evil deeds in His name like "the decider" over in Washington.

It may be painful for those of us who try to do right and get slapped down, but trust, what some may call Karma, is truth, and it sets us free and catches the wrongdoer in their own nets!!

 

RexBradfield's picture

06:28 PM, Anonymous

"it is the responsibility of the director of finance to stop such actions immediately. This type of behavior should have been reported at the moment it was discovered....not saved up for when it suited her purposes. Jim Dey needs to keep the story going. There is much more."

Surely you jest. You are attempting to put her in the same fraud boat as Vito, as Kidd said, what purpose? What would you suggest, something strange shows up on his card and she should immediately go to the Board? Well certainly,

Remember, when someone is committing fraud they are hidding the fraud to the best of their ability and the entire picture does not become obvious until many of these uncertainties begin to have direction. Let's say she suspects something early and goes to Vito, he realized he made a mistake, covers it and goes on.

Fraud must be proven completely, especially in cases where the responsible person is in a position to control the situation. But your wishes will come true, much to Vito's dismay. If you are a Vito supporter, it might be a better idea to just remain silent, than to suggest further investigation and I am sure he would concur. I agree with you, just keep investigating, and I believe I would focus on the guy with the truck first and foremost.

I am absolutely appalled at your suggestion of her "sitting on information" for personal gain. You left out the word you were looking for.......blackmail. Good grief.

To that end, I am, and shall always remain;
Rex Bradfield

B is for Business's picture

How can someone resign and then just report back to work?   If an employee quits, they can just change their mind?   From what I read, she absolutely did the right thing in exposing this nonsense.   Of course, it doesn't appear we're going to get off that easy.   I'm a bit concerned that her heroic whisteblowing will save us thousands from shady directors, but her lawsuit will cost us taxpayers a few hundred thousand.

RexBradfield's picture

B

"How can someone resign and then just report back to work?"

She did not, she submitted her resignation with all the reasons and set the time frame for that resignation to be immediately, the reasons were many, but first and foremost she believed she would be attacked by others including Vito and that would reduce the effectiveness of the Organization.

The officer to whom she submitted the letter, reviewed the letter, its contents and told her she was not accepting the resignation until the Board had reviewed the matter. She then instructed her to return to work.

Correspondence (electronic) clearly indicated the management not only knew she was at work but assigned her tasks. It was the correspondence that caused the State to award unemployment compensation to her. (You cannot receive unemployment compensation if you quit, you can only receive it if you resign, or are fired, or the company goes out of business.)

Incidently, again and for obvious reasons, our State does not protect whistle blowers at the municipal level and CUPHD is claiming soverign rights accordingly. The States Attorney's Office has suggested the City of Champaign Police Department investigate this matter and that makes NO sense. This organization works in Champaign, Urbana, Rantoul and is NOT a municipal body. The investigation should be at the County Sheriff Level.

To that end, I am, and shall always remain;
Rex Bradfield

"You cannot receive unemployment compensation if you quit, you can only receive it if you resign, or are fired, or the company goes out of business."

Rex,

Are you saying that when someone resigns voluntarily from a job they are eligible to receive unemployment compensation? If that is the case, what is the difference between quitting and resigning, so I can make sure to "resign from" and not "quit" my job?

RexBradfield's picture

Ed,

Thank you for pointing out a typo on my post. The correct statement is:

You can receive unemployment benefits if you are fired or laid off or the company goes out of business.

You cannot receive unemployment benefits if you quit or resign AND the resignation is formally accepted.

Thanks a lot for catching that, it was a serious faux pas on my behalf and I apologize for the error.

GEEZ what a dope I am.

To that end, I am, and shall always remain;
Rex Bradfield

B is for Business's picture

Rex, thanks for the update.  It still seems a bit confusing why she would submit a super-conditional resignation.   This definately has the making for a big lawsuit.   I just hope it doesn't cost the taxpayers too much.

RexBradfield's picture

B

Her resignation did not contain any conditions and she was prepared to just resign and get on with it. It was the CUPHD conduct in handling (or not handling) her resume' that creates the problem.

She was just ready to walk away, but her work ethic made her a valuable employee that would be difficult to replace so they wanted to try to keep her, then things really went south.

What I really have problems with is Vito's conduct. What on earth would possess him to use his card in that manner and also the vehicle and gas? For crying out loud.

To that end, I am, and shall always remain;
Rex Bradfield