Prosecutor: No criminal wrongdoing in Blytheville tax issue

BLYTHEVILLE, AR (KAIT) - An investigation into the tax withholdings that were not paid by the City of Blytheville has been closed.

According to Prosecuting Attorney Scott Ellington, the investigation was closed because there was no evidence of criminal wrongdoing.

In a news release Friday, Ellington said he started the Arkansas State Police probe last year following numerous requests into the matter by the citizens of Blytheville. The criminal investigation looked into the Cityof Blytheville's failure to pay $2 million in payroll tax withholdings. Those withholdings resulted in more than $1 million in interest and penalties assessed by the IRS.

In a letter to Arkansas State Police, Ellington said further investigation into city finances surrounding the tax issue showed no criminal wrongdoing on vendors or city officials.

The prosecutor concluded the matter was a "case of poor management by city officials with control of city expenditures, rather than criminal wrongdoing".

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