VIRGINIA BEACH -- An audit of the city's economic development department reveals new details about the spending habits of its former top leader and concludes he should reimburse the city $10,100 for improper expenses during a last-minute Las Vegas work trip as well as for time off that was not properly recorded.
The investigation comes on the heels of the departure of Chuck Rigney who resigned unexpectedly in July. The city audit reviewed more than $47,000 in credit card charges Rigney made since he began working for the city in 2023, according to a summary memo obtained by The Virginian-Pilot.
City Auditor Lyndon Remias' memo concludes that Rigney took more than 120 hours of paid time off without submitting proper paperwork and was paid $8,226 for hours not worked. After reviewing $9,800 in charges submitted by Rigney and a coworker for a two-day work conference in Las Vegas, the auditor concluded Rigney should also pay back $1,872 in "unnecessary" charges for airline upgrades and some meals.
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Rigney declined to comment on Friday, but disputed the auditor's findings through his attorney Kevin Martingayle.
2 sentenced in shooting of horse in Hanover in 2023
The charges all stemmed from an Oct. 17, 2023, incident where a 19-year-old American Paint horse named Jake was shot between the jaw and eye.
City Manager Patrick Duhaney requested the audit because Deputy City Manager Amanda Jarratt raised concerns that Rigney incurred questionable charges during a trip to Las Vegas, according to Remias, who noted that Rigney resigned in lieu of termination.
"Although the (economic development) Director had already resigned before our investigation, we agreed to investigate this matter to determine the extent of the situation and whether there were any other related issues," Remias said.
Rigney, 68, began working for the city in 2023 as a business attraction administrator, then as interim economic development director. He was named permanent director of economic development in February. He previously worked in economic developments for several Hampton Roads cities, including Hampton, Norfolk and Portsmouth.
In a statement on Rigney's behalf, which was attached to the memo sent to the City Council and city attorneys on Friday, Martingayle said Rigney consistently performed work remotely and during off-hours after receiving permission from his former boss, Deputy City Manager Taylor Adams, who resigned from the job last year.
Rigney's attorney also states that his client offered to reimburse the city for the upgraded airline tickets to Las Vegas but was told by Stacy Hawks, director of human resources, not to. Martingayle provided screenshots of a series of text messages between Rigney and Hawks in which Hawks wrote there was "no need to reimburse the upgrade amount."
At the time of Rigney's resignation, city officials didn't explicitly say what prompted the review. But in an exclusive interview with The Pilot in August, Rigney said he asked for a review by the auditor when he was confronted with concerns.
Performance and personnel issues ultimately led to Rigney's resignation, the auditor said based on what he was told by Jarratt; however, personnel matters were not investigated in the audit. Jarratt now serves in the interim economic development director role.
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The most costly issue for Rigney was taking time off without notifying the city and getting paid for those days.
"Based on our review of city records, time and attendance system (VBTime), and the (economic development) Director's Outlook calendar, we determined that he was out for many days and failed to submit leave taken, referred to as Paid Time Off (PTO)," the memo said.
Martingayle provided additional information about work calls or other business Rigney attended to on several of the days in question, noting Rigney "consistently performed work remotely and during off-hours in accordance with instructions and permission he received" from his then-supervisor.
Rigney's travel expenses also raised concern within city government. According to the auditor's memo, the city manager had instructed Rigney not to go on the Las Vegas trip.
Mayor Bobby Dyer credited the city's auditing methods for bringing the matter to light, but declined to comment on the wider issues that were raised.
"I'm glad we have a process that will catch these things," Dyer said.
The Pilot obtained copies of Rigney's city credit card charges, receipts and expense reimbursements spanning from when he began working for the city in March 2023 to the end of July, through a Freedom of Information Act request. Some of the biggest expenses outlined in 232 pages of receipts include airline travel for business trips to Germany, Brazil, Spain and Italy. Rigney took seven trips (five international and two domestic) during his tenure. Duhaney approved the five international trips. One of the domestic trips was to New York, and the other was to Las Vegas.
As the leader of the city's economic development, Rigney's role was to network with international companies interested in establishing in Virginia Beach. The department is a single point of contact for site location assistance, demographic reports, incentives and a variety of research, according to the city.
Receipts from the two-day International Council of Shopping Centers convention in Las Vegas, which Rigney took with a subordinate in his department in May, totaled $9,806.52. The cost included Rigney upgrading his airline ticket to first class and two Caesars Palace casino hotel rooms costing more than $800 per night. The total cost of food was $859, including more than $200 for alcohol, which was reimbursed to the city, according to the accounting detail in the memo.
The trip raised red flags in the city's Department of Finance, which reviews city directors' expenses. Rigney was asked to provide additional support for the transactions but failed to do so, according to the memo.
Remias notes that Rigney "went against the City Manager's instruction to not go on the Las Vegas trip. The (economic development) Director informed us that he made a business decision for the betterment of the city, and that's why he went on the trip despite being told not to do so."
The meals in Las Vegas, including 23 alcoholic drinks, were charged to Rigney's subordinate's credit card, which Remias concluded was in an effort to conceal the amount of alcohol purchased. The auditor's memo notes $220 in "questionable" alcohol charges have been reimbursed.
The auditor's memo notes that a full audit of all Economic Development Department credit card users will be conducted.
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