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.
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.