YUKON, OKLAHOMA — The City of Yukon has initiated legal action in Canadian County District Court to recover public funds that were misdirected from their intended municipal purposes, following a comprehensive third-party forensic audit that brought the issues to light in January of this year.
The audit, conducted by North American Forensic Accounting LLC (NAFA) and completed in January 2025, identified significant internal control deficiencies, governance failures, and improper financial transactions, including the diversion of $185,000 in public funds to the Yukon Community Support Foundation (YCSF). Additionally, NAFA's investigation concluded that the Foundation never reimbursed the City for a $263,719 public building project it had formally committed to fund.
"The diverted funds, donations, as well as other money transferred by the City to YCSF over the years, were not subject to the City's policies, ordinances, or statutes," the NAFA report stated. "If necessary, the City should also explore a legal remedy to recover funds that were improperly transferred" [NAFA Report, p.15].
These transactions, NAFA found, were authorized by individuals who simultaneously held roles in both City leadership and the Foundation, raising concerns about conflicts of interest and the bypassing of formal City oversight processes. According to NAFA, the Foundation's use of City resources — including land, personnel, and taxpayer-funded equipment — operated largely outside the public's view and beyond the reach of internal financial controls.
Following unsuccessful efforts to resolve these issues amicably, the City has now filed for both injunctive relief and monetary recovery from YCSF to restore the diverted public funds and prevent further unauthorized use.
"This legal action is not just about recovering money — it is about reestablishing public trust and ensuring financial transparency," Mayor Brian Pillmore stated. "We are acting on the findings of an independent, credentialed forensic accounting firm, and doing what is required to protect the interests of our city and taxpayers."
The legal complaint seeks to enforce fiduciary duties, uphold the City Charter, and reinforce proper governance standards for any entities interfacing with City funds.
Yukon's elected leadership remains committed to restoring confidence in its financial practices and to ensuring that all public funds are used in accordance with the law and in full view of the citizens they serve.
For media inquiries, contact: Jenna Roberson, (405) 350-3938, jroberson@yukonok.gov