Arkansas legislative auditors release investigative report on Diamond City

Published: Mar. 2, 2020 at 6:15 PM CST
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Arkansas legislative auditors released an investigative report on February 27, finding the former Diamond City mayor abused community center funds.

The district prosecuting attorney asked auditors to step in after former Mayor Jan Hudson was arrested and charged with theft of property, a felony, in 2018.

The auditors found Hudson improperly paid $5,000 to herself, her husband and her brother.

There was also about $20,000 in community center funds with no documentation and no stated purpose.

The auditors also found the community center was getting funds from the city, even though the center was supposed to be a separate nonprofit organization.

The current mayor, Linda Miracle, told the legislative auditing committee she's working to fix the problems.

"Our only problem is I have taken the community center back, but we have some of the same players that caused the problem that we are in trouble with now," Miracle said. "And so I'm fighting them tooth and nail because they're trying to put it back like it originally was."

Hudson's trial is scheduled for this month.