Dayton Mayor, City Manager comment on new round of federal indictments

Local News

DAYTON, Ohio (WDTN) – City leaders in Dayton are reacting to Tuesday’s FBI and Department of Justice press conference in which three more individuals were indicted in connection with the Dayton corruption scandal.

Steve Rauch, 64 of Germantown; Joyce Cameron, 71 of Trotwood and James Cameron, 80 of Trotwood were indicted on federal charges of fraud and conspiracy on Tuesday at U.S. District Court in Dayton.

Joyce Cameron is a former mayor of Trotwood.

Rauch and the Camerons were each indicted on six counts of mail fraud and one count of conspiracy to commit mail fraud. Glassman said his office was in communications with attorneys for the Camerons to appear in court.

“We are disappointed in the alleged activities of these individuals to purposefully and knowingly take advantage of the city for personal gain,” said City Manager Shelley Dickstein. “When individuals make the choice to commit fraud and line their pockets with taxpayer dollars, there are many victims including those who are rightly entitled to these opportunities, such as the truly disadvantaged businesses that these programs are so thoughtfully designed to assist.”

She stressed U.S. Attorney Benjamin Glassman’s statement Tuesday, clarifying that the City of Dayton’s processes in awarding contracts are not part of the ongoing investigation.

“When bad individuals intend to break the law, no amount of checks and balances can be put in place to prevent the unethical behavior,” she said.

Mayor Whaley echoed this thought, saying, “You’re going to have that happen no matter what kind of systems are in place. Surely we’re going to look and make sure that we have everything in place we can to prevent fraud.”

Since May, Dickstein says the City has added an additional layer of review to the Human Relations Council (HRC) award process for any contract being recommended above the lowest bid contract.

A whistleblower program was implemented in August of 2019 that allows for an independent, confidential, 24-hour mechanism for employees to report complaints or concerns regarding wrongdoings in the organization.

Officials have also implemented the Procurement Process Review Task Force. Six areas of procurement activity are being reviewed: construction, HRC (Affirmative Action Assurance Program and Procurement Enhancement Program), demolition, RFP activity, professional services contracts, and purchase orders.

The results of that review are anticipated to be delivered by the end of the year.

Mayor Whaley added that the City takes fraud very seriously and that she and other city officials are doing whatever they can to assist in the investigation.

“This is an indictment of alleged activity. We take fraud very seriously. We put efforts in place before this happened in May. The whistleblower activity was being done prior to that. We’re always trying to think of ways that we can stop fraud and make sure that taxpayer dollars are being protected,” she said.

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