JEFFERSON CITY, Mo., (AP) — A former Missouri House speaker was sentenced Monday to 21 months in prison after pleading guilty to wire fraud for misusing federal COVID-19 relief funds for his personal benefit.
Former Republican House Speaker John Diehl received about $380,000 in federal loans for his law firm between 2020 and 2022 through a program intended to help cover operating expenses for businesses affected by the coronavirus pandemic.
But Diehl admitted in a September plea agreement that he instead used the money for personal expenses, including country club dues, swimming pool maintenance, his home mortgage and vehicle payments for a Tesla, Audi and Jeep. Prosecutors said he used more than half the money to fund his law firm’s defined benefit plan, of which he was the only participant, and also paid off a civil settlement related to his time as state House speaker.
Diehl
PAYROLL & HR CONTROLS (PREVENTING “GHOST” SCHEMES)
Payroll fraud is often the hardest to detect because it “looks” like a normal business expense.
- Segregation of Duties (SoD): The person who adds new employees to the system must not be the same person who approves the monthly pay run.
- Mandatory Vacation Policy: Require all financial and HR staff to take 5–10 consecutive days of leave annually. Fraud often surfaces when the perpetrator isn’t there to “hide” the trail.
- Ghost Employee Audit: Perform a quarterly “Headcount Reconciliation” where managers must physically verify every name on their payroll list exists.
- Self-Pay Blocking: Ensure the payroll software has a hard-coded block preventing administrators from editing their own salary or bank details.