By Julie Snyder
C & G Staff Writer

ST. CLAIR SHORES — The St. Clair Shores Police Department will be leading the investigation into $19,000 in missing city funds.

City officials learned late last month that former Department of Public Works Director Curt Dumas violated city policy when he failed to record $19,143 in revenue received during a two-year period through scrap metal sales.

On Jan. 26, Mike Smith, St. Clair Shores’ human resources director and assistant city manager, said that during his investigation of the allegations, Dumas admitted that he continued to take cash for scrap metal from a Detroit area dealer even after the city in July 2007 closed a city account designated for such funds.

The revenue was kept in an envelope in Dumas’ office, and at the time of his formal resignation on Jan. 25, only $950 remained.

Dumas was placed on administrative leave just days prior to submitting a resignation letter, apologized and said he would pay back the city.

A report filed Jan. 26 with the Macomb County Probate Court Mental Division by two St. Clair Shores Police Detectives requested Dumas be hospitalized for psychiatric evaluation after he made threatening comments to City Councilwoman Beverly McFadyen.

According to the report, during a telephone conversation with McFadyen, Dumas said he was distraught over his resignation and the investigation. He said he has been unable to sleep or eat and didn’t know if he should “kill himself or someone,” the report states.

The probate court denied hospitalization as requested by police, but the report said Dumas should have outside help from a psychologist or psychiatrist.

Dumas, a resident of Richmond, was mayor of St. Clair Shores from 1995 until stepping down to take the position as DPW director in 2005.

He remains unavailable for comment.

In 1999, St. Clair Shores established a policy for the handling of revenues received from the sale of scrap metal and used oil dropped off at the Public Works building at Pleasant and Industrial streets. Included in this policy was the establishment of an account for “staff training/support that us approved by the (DPW) superintendent,” and from March 2000 to July 2007, approximately $24,000 was deposited into this account, Smith reported.

However, of that amount, $6,000 was spent on parties or other personal items.

Determining that those public funds should not be spent in such a manner, the account was closed. Those monies were instead to be deposited into the city’s miscellaneous revenue account of the Utility Fund. No record of scrap metal deposits had been made to the account since July 2007.

Smith had sought aid in the investigation of possible criminal charges from both the Michigan State Police and the Federal Bureau of Investigations to avoid claims of a favoritism should the investigation be done by local police.

St. Clair Shores Police Detective Lt. Michael Walleman said on Feb. 3 that his department will conduct the investigation, and said no stone will be left unturned in the investigation.

“We are a professional police organization and we investigate any criminal activity that takes place in the city of St. Clair Shores,” Walleman said.

“I can guarantee that any investigation will be done with the utmost integrity and as in-depth as possible.”

The city was notified of the missing money by a city employee. During a special meeting held Jan. 26, City Manager Ken Podolski encouraged his employees to notify him of anything questionable going on in their departments. He said last week that no employee should fear retribution.