Former Grand Old Day organizers subject of criminal probe
Business group’s financial straits prompt spending probe
Go Deeper.
Create an account or log in to save stories.
Like this?
Thanks for liking this story! We have added it to a list of your favorite stories.
A criminal probe is underway into the past dealings of the sponsor of Grand Old Day, authorities confirmed Monday.
St. Paul police and federal authorities are looking into the finances of the Grand Avenue Business Association, the St. Paul business group that runs the annual street fair. The event was cancelled due to financial difficulties this spring following the abrupt resignations in April of the group’s president and the executive director.
A grassroots effort saved the June 2 festival at the last minute.
The association’s current president Bob Lawrence said St. Paul police inquired about the group’s finances this spring and launched an audit of the group’s books.
Turn Up Your Support
MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all.
“They said there was enough information that they felt they needed to look into things further, and at some point in that process it got handed over, taken over by the U.S. Attorney’s office,” Lawrence said.
He said the investigation involved financial impropriety.
“This is looking at the same records we all looked at and scratched our heads a little bit — that over the course of 2011 to 2017, they seemed to burn through about $170,000 in reserves,” Lawrence said.
A report from the St. Paul Police Department confirms that there is an ongoing criminal investigation of the matter. Federal authorities don’t discuss their activities in ongoing investigations.
KSTP-TV reported over the weekend that the association records included suspect expense charges to the organization’s bank accounts, including casino and entertainment bills.
Lawrence, an insurance agent, said he joined the board in January and was elected president of the association after the resignation of his predecessor. He says new board leadership has righted the business group’s financial situation, including a surplus generated by Grand Old Day, after the last minute reprieve that rescued the festival.