By J.B. Smith

Tribune-Herald staff writer

Waco police are wrapping up an investigation of alleged misappropriation of funds at Downtown Waco Inc., an inquiry that has lasted more than four months, Police Chief Alberto Melis said Thursday.

Melis said detectives have sorted through several years’ worth of financial records from numerous banks, including records obtained only two weeks ago through a subpoena.

“We’re now going through it, and we expect to have a resolution in the near future,” he told the Tribune-Herald. “Once we have finished going through the paperwork, we are going to have the investigation reviewed by a third-party forensic accountant, and then we will present it to the district attorney.”

The downtown development agency lost its $386,138 annual funding from the city of Waco and closed its doors after the financial scandal became public late last summer. The Downtown Waco Inc. board’s own inquiry last fall pointed to more than $500,000 in questionable expenses since 2002 by former executive director Margaret Mills.

Records showed that Mills wrote large checks to cash, used secret credit and debit cards, and even deposited some members’ dues into her personal bank account.

Mills, 65, was making nearly $64,000 a year at the time of her resignation. She has been credited with revitalizing downtown Waco and had been widely respected for her devotion to the city.

Melis said two detectives have been on the case full time since October. He said he has heard many questions about when it will conclude and whether police are participating in a cover-up.

“People don’t realize that this type of case usually involves a lot of paperwork,” he said. “You have to follow any trail that might be open, and that’s not just a matter of days or weeks.”

Mark Boyd, vice president of the Downtown Waco Inc. board, said he was “delighted” to hear that police were close to the end of their investigation.

“The board is just as anxious as everyone to find out what happened,” he said. “We support the investigation. I think you’ll hear a huge collective sigh of relief all over town when board members learn the investigation is nearing its conclusion.”

Boyd said conspiracy theories have sprouted in the absence of new public information about the case.

“From time to time, I will be approached by someone who will ask, ‘Is this a big cover-up?’ ” he said. “All I can do is respond that I know it’s not being swept under the rug, that it’s under active investigation.”

jbsmith@wacotrib.com

757-5752