Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Transportation

Special Review

Employee Theft of Equipment

Objectives

We conducted a special review of an allegation that equipment was stolen from the Department of Transportation's Electrical Services Section.

We initiated our review of alleged improprieties upon receiving information from the Department of Transportation. Our review addressed the following questions:

• Were traffic controllers stolen from the Mn/DOT Electrical Services Section? If so, was there evidence indicating who perpetrated the theft?
• How did ACT Electronics, Inc. acquire the traffic controllers? If the traffic controllers were stolen from Mn/DOT, was there evidence that ACT Electronics had knowledge of the theft?

Conclusions

We found that James Heurung, while a Mn/DOT employee, stole equipment from the Electrical Services Section.

The evidence shows that Mr. Heurung stole four traffic controllers, valued at about $3,500 and at least 1,200 terminal blocks worth about $5,000. Mr. Heurung sold much of this equipment to ACT Electronics, Inc. We did not find evidence, however, that the president of ACT Electronics, Inc., who had negotiated the purchases from Mr. Heurung, was aware the equipment was stolen.

On September 29, 1993, we filed a complaint with the Hennepin County District Court for possible criminal prosecution.

Pursuant to Minn. Stat. Section 3.975, this report shall be referred to the Attorney General for resolution.