DODGE CENTER, Minn. (KTTC) – Following a nearly two-month fraud investigation into the alleged misuse of Dodge Center American Legion funds, authorities have arrested a Dodge Center man.
Dodge County authorities report the investigation began in August 2026 after legion representatives discovered records indicating its former treasurer and commander Rich Klindworth, 52, has used more than $16,000 for personal expenses.
Further digging by authorities revealed more than $75,000 in suspected unauthorized spending online and in person dating back to 2024.
The Dodge County Sheriff’s Office executed a search warrant at a rural Dodge Center home Wednesday morning. During the search, investigators found multiple items including firearms in Klindworth’s home that appear to have been purchased with legion funds.
Klindworth made his first court appearance Thursday morning and is charged with one…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.