St. Louis tow lot federal investigation reveals systemic ‘corruption within the city’ and $5 million worth of missing vehicles — here’s why the story was ‘swept under the rug’ for years

Audit report on the tow lot

A city audit was quietly released in March of this year, finding that 568 of 1,133 vehicles (that’s 50%) were missing from the inventory — accounting for nearly $5 million in missing city revenue. The audit also found that more than $80,000 in cash was unaccounted for, and 33% of tow tickets were missing, incomplete or had incorrect amounts listed for vehicle sales or value.

Newly-elected Mayor Cara Spencer responded to the situation, stating, "This audit … should not have been swept under the rug."

"A lot of the employees was taking the cars and benefiting for themselves," said George Hooker, another longtime city employee who previously worked as the auctioneer for the tow lot.

In spite of the fact that Hooker signed paperwork that he would be protected as a government whistleblower, he still faced consequences.

"They promised me that I was protected under it, but I still got moved," he said. "Betherny is the one that transferred me. She transferred me because I was complaining to her about what was going on down here."

Former Streets Director Betherny Williams transferred Hooker to the city’s refuse division, and he claims Williams buried him in difficult work assignments as a retaliation.

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Systemic corruption

"Once I started ruffling feathers, they got me out of there pretty quickly," said James Mundy, another city employee who briefly served as commissioner of the tow lot. He was also transferred for trying to speak up to his superiors about what he saw.

Speaking to KSDK in 2021, Lynette Petruska, Angelica Woods’ attorney, said, "What the city is really doing here is they're sending a message loud and clear. We've got this whistleblower protection on paper, but don't do the right thing and don't blow the whistle because if you blow the whistle, you're going to pay.”

The city’s audit from March recommends that payments at the tow lot be converted to online systems instead of the current cash payments — a recommendation that seems long overdue in 2025. The audit also recommends implementing a digital system to track all records, which also raises questions about why city staff have been using paper-based methods for so long. The city’s Comptroller Donna Baringer forwarded the audit findings and additional evidence collected to the federal prosecutors investigating the case.

Impact on St. Louisans

KSDK reported in 2021 that a special audit from that time found up to 150 cars appeared to leave the tow lot for free between 2018 and that year, a figure that did not include stolen cars that were released to their owners. Almost $78,000 in tow and storage fees were also waived for no reason.

However, a number of citizens came forward after the news station broke the story and claimed that their stolen cars were not retrievable from the tow lot for free — despite a city ordinance that allows owners to collect their stolen vehicles without a charge within a 72-hour time frame.

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Protection for whistleblowers

According to the U.S. Government Accountability Office, the federal government alone loses an estimated $233 to $521 billion to fraud each year. These numbers are based on an assessment covering 2018 to 2022, and the GAO reported that “no area of the federal government is immune to fraud.”

However, no matter which level of government a civil servant works for, the US has laws in place to protect whistleblowers. Both government employees and private sector employees can find the info they need on whistleblowers.gov to file a complaint and understand their rights.

When whistleblowers file a complaint, the government site recommends keeping a paper trail of related communication with your employer, including emails, meeting notes, etc. The Office of the Inspector General also maintains a hotline where federal employees can report corruption. City and state-level OIGs are also the first line of defense if you have evidence of bribery, conflicts of interest, or other criminal activity.

Finally, if you are aware of a dangerous situation in your workplace, such as an employee who is retaliating against others using physical violence or threats of violence, be sure to call the police right away to report the crime.