$9,000 Severance Pay Triggers Audit

Diamondhead CC &POA Treasurer, Mike Schaefer

Diamondhead CC &POA Treasurer, Mike Schaefer

An unauthorized payment of nine thousand dollars ($9,000.00) to a former country club manager was the catalyst that prompted Diamondhead Country Club and Property Owners Association Treasurer, Mike Schaefer to begin looking into country club operations for possible other irregularities.  The payment was made to Liz Naples as a severance arrangement through the payroll system and was ordered by then DHCC&POA president, Elton Kyger in April 2014.

Sources inside the Diamondhead Country Club and Property Owners Association have stated that Naples had threatened to initiate a sexual harassment  complaint against the Mississippi non profit corporation (The DCC&POA is not a Federally  recognized 501c non profit) prior to the payment being made.  Naples was also known as the girl friend of then DHCC&POA general manager, Scott Irwin.

No record of a board of director’s vote exists to authorize the payment and the bylaws of the corporation does not allow the president to authorize unilaterally, any payments without board approval.  They payment was made through the DHCC&POA payroll contractor by order of Kyger.

POA Ex-Officio Elton Kyger

POA Ex-Officio Elton Kyger

Kyger’s tenure as president ended in June 2015 and despite a conviction of assaulting an ederly  DHCC&POA member he remains on the board as “ex-officio”.

The “severance package” was the first and only such arrangement ever made by the DHCC&POA to any employee in their history.

Liz Naples worked for the Diamondhead Country Club and Property Owners Association for eighty nine (89) days.

About the Author

T. R. Alfonso
Editor and Publisher of the the Diamondhead News Online

5 Comments on "$9,000 Severance Pay Triggers Audit"

  1. Perhaps “Only The Beginning”?

  2. So, wait. I’m trying to understand this. In Diamondhead, it’s Marshall Kyger who gets to decide what’s appropriate for board members to do? So in 2014 he decides it’s appropriate to pay off, a.k.a. bribe, an employee to avoid a sexual harassment suit against someone in the POA, but in 2015 he decides it’s “totally inappropriate” for the treasurer to start an investigation into major POA losses of property owners’ money and questionable decisions by himself and others? And other board members just blandly accept this behavior? I feel like Alice after falling down the rabbit hole. What kind of weirdness goes on here?

  3. Just checked back through the POA open meeting minutes and it appears there was weirdness about the hiring of Ms. Naples as well. From the minutes of Dec. 5, 2013, online at the POA site:

    Member Questions –
    J. Yarbrough began the section by explaining the hiring of L. Naples as a temporary employee, reporting to D. Flink to assist with transition until D. Flink can be replaced. Position search is in process. L. Naples helping assess processes and problems. No changes in personnel have been made.
    1. Club changes – A communication problem occurred as Board was not aware of temporary hiring despite appropriate approval by Board President. J. Menker reported that a motion to continue the employment of L. Naples as temporary employee for 90 days reporting to Club Director, and reporting findings to the Board at 90 days with continued employment to be reevaluated. The motion was seconded by J. Menker and passed with J. Yarbrough, N. Sislow, B. Marshall, D. Crosby, K. Johnson, J. Menker, C. Perry, J. Peppenger and M. Feola in favor. Also J, Menker reported a motion to revise the HR policy, “Hiring of Relatives” to include fiancé and live-in companion in the list of those not to be hired, with
    exceptions to be approved by the Board was made by J. Menker and seconded by C. Perry. The motion passed with Yarbrough, Marshall, Sislow, Crosby, Johnson, Menker, Perry and Feola in favor, Peppenger opposed.

  4. squaredeal1 | October 5, 2015 at 11:45 am |

    Does everyone remember the “Break in at the CC whereby 3,000 came up missing on Kygers shift, but it seems to have been placed on the back burner?The Sheriff’s office could find NOTHING..Hmmm, sure does sound suspicious to me.

  5. squaredeal1 | October 5, 2015 at 12:08 pm |

    Sorry, didn’t finish my comment..this was in the same time frame as the sexual harassment threat made by Liz, and the same time the 9,000 was awarded her by Kyger..just to clarify things..Imagine if the two incidents are linked.It would most definitely call for criminal charges, and someone should get in touch with this lady that was given the money.She could give credence to all this happenings .

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