Feds charge former Lawrence Mayor Jeremy Farmer with embezzlement

Up to 10 years in prison and up to $250,000 in fines may await former Lawrence Mayor Jeremy Farmer, if he is convicted of a federal embezzlement charge filed against him Thursday.

Federal prosecutors on Thursday charged Farmer, 32, with one count of interstate travel of embezzled funds related to his time as the executive director of Just Food. The filing in Kansas’ U.S. District Court also states that prosecutors plan to go after Farmer’s personal assets to recover any ill-gotten gains, if necessary.

Farmer is alleged to have taken more than $55,000 in funds from the nonprofit agency from 2013 to August 2015, when Farmer resigned from Just Food and from his mayoral post under a cloud of controversy.

Will Katz, president of the nonprofit Just Food board, said the filing of the federal charge goes a long way in answering a major question in the community.

“One of the main complaints we have heard as a board is ‘Why hasn’t he been brought to justice?'” Katz said. “We have preached patience. It wasn’t our step to take. We’ve certainly cooperated and wanted the facts to come out.”

Farmer left both Just Food and his elected seat as Lawrence city commissioner in August 2015 after it was revealed he had not paid more than $50,000 in federal and state payroll taxes on behalf of Just Food. He said at the time it was an oversight that the taxes weren’t paid.

A month later, Just Food’s board of directors released results of its own investigation that alleged Farmer made unauthorized payments to himself of more than $52,000 in salary and benefits over a two-year period. On Thursday, Katz said the food bank believes the total is now closer to $56,000.

The court filing makes several allegations. They include:

• As executive director of Just Food, Farmer “made adjusting entries in the QuickBooks and financial statements provided to the board of directors for Just Food to conceal his actions and embezzlements.”

• After having committed the embezzlement, the court filing alleges that Farmer knowingly transported the stolen money across state lines, which is a violation of federal law. The Journal-World has previously reported that Farmer had been living in Missouri after he resigned his positions with Just Food and the city of Lawrence.

Jim Cross, public information officer for acting U.S. Attorney Tom Beall in the Federal District of Kansas, said that in situations similar to Farmer’s the suspect is generally not placed under arrest once charges are filed.

“Normally in a nonviolent crime — crime that is what most people call ‘white collar,’ no violence involved — the defendant is not jailed pending trial,” he said. “They just issue a summons and say you shall appear on this date.”

In a press release issued later on Thursday, the U.S. attorney’s office said Farmer could face up to 10 years in prison and a fine of up to $250,000, if convicted. Those penalties are maximums and could be less depending on Farmer’s criminal history and other circumstances.

An attempt to reach Farmer for comment Thursday afternoon was unsuccessful. The court filing does not list a defense attorney for Farmer.

The next step in the case is for Farmer to appear in court for an initial appearance, Cross said.

“He’ll hear the charges and the judge will inquire as to whether he needs a lawyer or whether he can provide his own,” he said.

That appearance has not yet been scheduled, Cross said.

The court filing holds out the possibility that Just Food could receive restitution from Farmer, but Katz said it was difficult to know whether that ever would happen. Katz said the board is not surprised that criminal charges ultimately were filed against Farmer.

“We just want to see the process play out the right way,” Katz said. “Personally, this is not a moment where I’m pumping my fist in the air and talking about people getting what they deserve. It is really just a sad tale of what can go wrong. It is a story of someone making some bad decisions.

“But there are consequences to actions. People are innocent until proven guilty, but there probably will be some consequences here.”

Katz said the Just Food organization largely has recovered from the damage done by Farmer. The organization raised about $60,000 from community members in the wake of the scandal to pay the past due payroll taxes.

The organization also has put several new controls in place to ensure more financial accountability. An audit conducted after the incident found that the Just Food board lacked several key financial controls that likely made it easier for Farmer to bilk the organization.

“It was shocking both personally and professionally in every way,” Katz said of the alleged embezzlement. “The lesson is you buckle down and try to do the right thing and trust the community to support a cause that is worth supporting.”

Katz said the most important internal control the organization has added is the board members now have regular contact with Just Food’s outside accountant. Before, dealing with the accountant was left primarily to the executive director. Just Food’s investigation alleges that Farmer fired the organization’s previous accounting firm and concealed that information from the board.

Thursday’s court filings held out the possibility that Farmer would be required to make restitution to Just Food, and that prosecutors could seek forfeiture of Farmer’s personal property to help make Just Food whole. Katz said it is difficult to know whether the nonprofit will ever get everything back it lost from the alleged crime. But Katz said the nonprofit is focusing on what it can control. Just Food is on pace this year to feed more people than it ever has this year, and Katz said the organization’s finances also are solid.

“I would say the community really has helped make us whole,” Katz said. “We were going through a tough time and the community really helped us through it.”