Police reports reveal evidence of embezzlement by former WTVP CEO Lesley Matuszak

The Peoria Police Department would have had probable cause to arrest the former CEO of Peoria's PBS affiliate on embezzlement charges had she not killed herself, according to a recently completed investigation.

Police reports obtained by the Journal Star indicate that both police and the Peoria County State's Attorney's Office agreed that there would have been probable cause to arrest Lesley Matuszak, who served as CEO for WTVP from 2019 to her resignation in September 2023, on charges of embezzling hundreds of thousands of dollars from the station's coffers over a two-year period from 2022-2023.

Matuszak committed suicide on Sept. 28, 2023, just one day after her resignation. It soon became clear that under Matuszak's leadership, the station had been hemorrhaging money and needed lines of credit in order to survive just before her death.

More: WTVP is at the center of a financial crisis. Here's what we know so far

WTVP investigation reveals embezzlement, luxury purchases

The police reports paint the picture of a woman using station funds in order to benefit herself, through purchases of clothing, jewelry and golf items on the station's credit cards, reimbursing herself for Peoria Country Club bills, using a "luxury auction" to hide various purchases of luxury items, and transferring money out of the station's investment account.

Members of WTVP's board and the station's executive council were interviewed in November 2023 regarding an audit that had been conducted into the station's finances before Matuszak's death. At first, the board suspected lazy bookkeeping, but found that $320,000 had been taken out the investment account, something that requires board approval. Detectives were informed that no approval for the withdrawal had been given.

Later, one board member found a credit card statement that had purchases from places like Saks Fifth Avenue , which led to a meeting where Matuszak was confronted with the charges.

While they admitted that some items could have been purchased for legitimate company reasons, they found four distinct ways in which Matuszak had been embezzling from the station.

One way was her credit card expenses, which included: the large purchases of clothing and jewelry from places such as Saks, Potter & Anderson Jewelers and Fine Gifts and Bergdorf Goodman ; travel expenses such as expensive golf outings; large gas purchases, car washes and repairs; and unauthorized Medicare payments.

The second option was reimbursements, with $500,000 being reimbursed to her since she was hired as CEO in 2019. Among the reimbursements were the country club bill, with dues included alongside lunches and dinners.

The third way was the luxury auction items that included tennis bracelets up to $16,000 and one item that sold for $30,000. The board told detectives that Matuszak would tell them that they bought the items on consignment and sold it for the same price, even though no revenues were coming in. She also told the board that bidders had been invoiced for the items, only for no tax letters to be sent out for the purchases.

The board suspected that the "luxury auction" was in place to hide her previous purchases of those items.

More: An in-depth look at WTVP's future and criminal investigation

The final way was the transfers out of the investment account, which included a $100,000 line of credit from PNC Bank and $320,000 from the investment account to cover for a low cash balance. Those transfers were not approved by the board and weren't known until the station's July financial statements were reviewed.

Police also received over 4,000 pages of credit card statements, receipts and emails provided by Matuszak for reimbursement purposes. Only 335 pages were reviewed by detectives, and 31 of them contained "conspicuous" expenses not related to station business. Among the expenses included the country club bills, health insurance payments and charitable donations.

One donation was sent to Rep. Ryan Spain, R-Peoria, with $7,000 being put into his coffers. In November 2023, Spain sent the money back to the station after news of the improprieties was uncovered. Non-profits such as WTVP are not allowed to make political contributions.

Also included was her credit card statement from June 2023 that was entirely made up of personal expenses and $88,000 worth of luxury items for the "auctions." Detectives contacted the largest donors of the auctions, all of whom had not received any sort of luxury items, with one saying that she had no recollection of purchasing something and another saying that their signature had been forged by Matuszak on a $100,000 check.

Long-lasting effects on WTVP

The reports also detail the relationship between Matuszak and the station's former finance and human resources director, whose name is redacted in the reports. Lin McLaughlin was in the position during that period of time and resigned at the same time as Matuszak.

Board members informed detectives that the finance director had been approving many of the purchases, suspecting either incompetence on her part or a need for financial gain.

Police could not establish probable cause for McLaughlin's arrest. Because Matuszak had committed suicide, detectives recommended that the case be closed.

The impact of Matuszak's alleged embezzlement has run deep through the venerable PBS affiliate, first established in 1971. Weeks after her death, the station's budget for 2024 was reduced by $1.5 million, laying off nine people after the financial improprieties were revealed .

In October, publication of Peoria Magazine — purchased by the station in 2021 — was suspended and investigations by the Illinois Attorney General's Office and Peoria police commenced shortly thereafter. The Corporation for Public Broadcasting withheld 2024 funding from the station and asked their Office of the Inspector General to open their own investigation. The results of that investigation have not yet been released.

The station confirmed in December that Matuszak and the station's former finance director were suspected of approving the improper spending, with members of the community asking for the entire board to resign at a tense monthly meeting.

Then-board chairman Andrew Rand said in a statement, "The board has spent the last ten weeks reviewing multiple options to ensure the future financial viability of WTVP. After the unexpected resignations of the Director of Finance/Human Resources and the CEO, the board found itself facing an uncertain financial future with evidence of improper, unauthorized, or questionable expenses which appear to have been approved by the former CEO and Director of Finance/Human Resources."

Eventually, 11 board members resigned , with eight others replacing them immediately and eight more joining in February.

The station did note improving financial numbers early in 2024 and looked to turn the page on the tumult through the leadership of new CEO Jenn Gordon , a Peoria native and former executive director of ArtsPartners of Central Illinois. In addition, their insurance company provided $250,000 in damages due to the misuse of funds.

John Wieland, the station's new board chairman, said in June that expectations are for the station to return to solvency by the end of the year.

This article originally appeared on Journal Star: Police reports reveal evidence of embezzlement by former WTVP CEO Lesley Matuszak