The organization that runs St. Paul's Grand Old Day is under criminal investigation, according to police.
Officials say federal investigators are looking into several years of finances after an audit by St. Paul police initially found some irregularities.
Last summer, festival organizers abruptly canceled the event due to lack of money, only to have it saved by a handful of business owners who were able to raise more $100,000.
Bob Lawrence became president of the Grand Avenue Business Association after the period of alleged financial irregularities occurred. There are about 80 businesses included in the association.
“If in fact there was money that was taken from the organization, we should take it back and hold that person responsible,” Lawrence told News Talk 830 WCCO. “We’ve been cleaning up and reducing costs and I am confident that no one on the board now is responsible for anything.”
In the wake of the cancellation of the event last year, a former marketing director for GABA, James Farnsworth, told KSTP that he had resigned due to concerns over how the organization was being run, both financially and otherwise.
Farnsworth, who is now the interim executive director of the Highland Business Association, reacted to the news of the investigation today, telling the Star Tribune that “"It was clear that something was going on” and that “When something looks funny, it usually is."
