Investigation Concludes: No Evidence Lambi Benefited From City Funds

A new report out from Wentzville City Attorney Paul Rost clears of allegations that he personally benefited from city funds paid to Westplex Sports & Entertainment LOC in 2007.

The report, which will be discussed at Wednesday’s Board of Aldermen meeting, concludes Lambi’s connections to Westplex, and his failure to disclose those connections, “certainly created an actual or possible appearance of impropriety. Further, the lack of documentation as to the allocation of ownership interests in Westplex, coupled with the Mayor’s known connections with Westplex, prevents this investigation from conclusively determining whether the Mayor may have violated any relevant laws.”

During a Feb. 8 executive session meeting, Alderman Chris Gard said the check had been found with no contract for documentation, meaning the city had no idea what services it got in return for the money.

Lambi served as one of 47 advisors to Westplex, Rost’s report says, while his personal website lists him as founder of the organization. Lambi first mentioned Westplex to the board in August 2007 and invited the board to a kick-off event for the organization that September. 

The board then passed a resolution on Sept. 12, 2007, that appropriated funds, "in a spirit of cooperation." The check was issued the next day and at the kick-off the City of Wentzville was announced as the event's major sponsor.

Lambi's tax returns for 2007 and 2008 reported no income from Westplex, Rost’s report says.

Initially, Westplex promoted the creation of a Velodrome — an arena for track cycling — in Wentzville, but dropped the idea when the annual Tour of Missouri was canceled for 2009.

Although Westplex is still listed by the Missouri Secretary of State as "active," there is no documentation that the organization has done any further planning or pursuing of events.

Recommendations

The report concludes that the timing of the check raised some concerns about Lambi's involvement, as it seemed that Westplex not only expected the payment from Wentzville, but was counting on it—before it was authorized.

The report also concludes that although board members may have been aware of Lambi's involvement with the organization, no evidence showed he made a formal notification to the board of his connection with Westplex. Also, although no record exists of any payment to Lambi by Westplex, there was also no record of any promise or intent to pay.

From the report:

"In this situation, the prudent and appropriate—although not necessarily legally mandated—course of action would have been for the Mayor to fully disclose in the record his involvement with and any interest in Westplex, and then to recuse himself from any discussions related to Westplex."

The report went on to recommend a "when in doubt, disclose" policy and that:

 . . . while there is no evidence that the Mayor personally received any City funds or directly benefited financially from the funds in question, the Mayor's direct connections to an entity receiving City funds, and his failure to disclose those connections, certainly created an actual or possible appearance of impropriety.