KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar BluffPulaski Co. businessman arrested for misusing gov. money

Pulaski Co. businessman arrested for misusing gov. money

By Carly O'Keefe - bio | email

MOUNDS, IL (KFVS) - A Pulaski County businessman faces federal charges for allegedly using government funds inappropriately and lying to investigators.

Federal agents arrested Zachary T. Hannan early Thursday morning at his business in Mounds.

Pulaski County Sheriff Randy Kern said his department was not involved in the arrest, but he knows the story behind the investigation.

According to Kern, his department received federal grant money for meth enforcement back in 2007 and turned to a local company called Prime Distribution to buy equipment and supplies with that grant money.

According to the sheriff, the company, owned by Hannan, agreed to fill the order, but not everything ordered came in and the money wasn't returned.

According to Kern, because it was federal grant money, the sheriff's department reported the discrepancy to the FBI. That launched an investigation into where that equipment and/or money went.

Now, according to federal court documents, a grand jury has charged Hannan with one count of misapplication of property under the care, custody and control of a local government that receives federal funds and an additional charge of making false statements to the Department of Justice Office of Inspector General.

That charge, according to court documents, is because Hannan agreed to pay restitution for the missing money, and told federal agents he had $90,000 in a personal trust account to pay for that but really only had $50 in the account.

Hannan made his first court appearance in the United States District Court for the Southern District of Illinois in Benton Thursday afternoon.

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