Transcript of the Testimony of Nancy Morton

Date: November 14, 2013 Volume: I Case: In Re: Joplin Critical Investigation

Printed On: November 27, 2013

Holliday Reporting Service, Inc. Phone: 417-358-4078 Fax: 417-451-1114 Email:daholliday@hotmail.com Internet:

Nancy Morton

In Re:

Joplin Critical Investigation

Page 1

IN RE:

JOPLIN CRITICAL INVESTIGATION

SWORN STATEMENT OF

NANCY MORTON

Taken on Thursday, November 14, 2013, from 2:04 p.m. to 2:29 p.m., at the law offices of Juddson H. McPherson, LLC, 626 S. Byers, in the City of Joplin, County of Jasper, State of Missouri, before SHARON K. ROGERS, C.C.R.650, a Certified Court Reporter and a Notary Public within and for the County of Jasper, and State of Missouri.

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 2

APPEARANCES

MR. THOMAS E. LORAINE Loraine & Associates, LLC 4075 Osage Beach Pkwy., Suite 300 Osage Beach, MO 65065

tellaw@loraineandassociates.com

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 3

S T I P U L A T I O N

IT IS HEREBY STIPULATED AND AGREED that this Sworn Statement may be taken by steno-mask type recording by SHARON K. ROGERS, a Certified Court Reporter, and afterwards reduced into typewriting. It is further stipulated that the signature of the witness is hereby waived, and that said Sworn Statement of said witness shall be of the same force and effect as though said witness had read and signed Sworn Statement.

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 4 I N D E X Page/Line DIRECT EXAMINATION BY MR. LORAINE . . . 5-4

E X H I B I T S

Exhibit #A.

5-7

Advice of Rights

Note:

Exhibits in separate binder

(sic) - typed as spoken (ph.) - phonetic

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. NANCY MORTON Having been first duly sworn and examined, testified as follows: DIRECT EXAMINATION BY MR. LORAINE: Q. A. Q. May I call you Ms. Morton? You may call me Ms. Morton. Ms. Morton, I have Exhibit #A which you have signed for me, which is an Advice of Rights form. As I briefly told you it's not

particular germane to you, but for any City employee I can make them sign this, but in any case you consented to do this and Exhibit #A, does that have you signature on it? It does. And thank you. You are under oath and the

reason we're doing that is this is an official investigation. I've been appointed

by the City of Joplin and there are three tasks. One is to look into Bill Scearce's

alleged gambling ring conspiracy matter, the other one is to look into Mr. Woolston's alleged, he's a real estate agent and he's alleged to have used the influence of his office perhaps against ethical matters, and the third is that there was an item

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. supposedly stolen off of Mr. Rohr's desk by Bill Scearce and I have investigated that and that's concluded and it's not true. So I've Now

got those three things to investigate.

I've been told that you want to talk to me, and I don't know what it's about so I'm going to ask you concerning those three things or anything else that's particularly germane to those three issues or to the City Manager who is part of those three issues do you have something to say? I do, sir. Well, let's hear it. I was the Office Manager for Bill Scearce when he had the franchise, the Olsten Staffing Services. I don't have the dates.

I'm sure other investigations have provided the dates for when he did have that business. But I have known Bill Scearce socially, personally prior to being his Office Manager probably for ten to fifteen years. go way, way back. He and I

I have a great deal of I am

respect for Bill, have had in the past.

very disappointed in what is going on at City Hall at Council meetings that he is

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 responsible for. I was contacted because I

know a lot of people in town and a lot of people know me and knew I was his Office Manager and when he repeatedly either avoided interviews with the Joplin Globe or he lied I was contacted by the Globe and asked if I would comment. Well, I have known his

family, I've worked - we're all just - it's very important to me not to be the one blowing the whistle on him so I went to him and I talked to him and he said, okay, it's not against the law to lie to the Joplin Globe, Nancy, ha, ha, ha. And I said, Bill, You need to

this isn't really very funny. tell the truth.

And before I left he told me Well, he has

that he would tell the truth.

issued another statement to the Globe and I don't think it was - it's not that it was not true, he just left a lot out. But I am not

familiar with what is ethical and what isn't and as far as I'm concerned, this is just my personal opinion, Bill worked hard, he earned his money, he paid his taxes. Mr. Lovett had He

two different locations at our offices. paid his rent.

I know personally that Bill

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 was not gambling because before he hired me he and his wife and I sat down and he didn't owe me an explanation, but he told me that he felt like because we would be working with local businesses and the confidentiality of their payroll needs that he did not feel that he should be betting any longer. And I think

that's very professional of him and it was the right thing to go. But Mr. Lovett - Bill

was quoted in the Joplin Globe as saying his employees were advised not to have anything to do with Mr. Lovett. Kenny, we knew him.

When we first opened the office he was located over in a car lot right next door to our office and very frankly I didn't know he was a bookie. I thought he was selling cars.

Well, then that car lot I believe got sold and there was a little metal building adjacent to our offices that Bill leased, rented to him from month to month where evidently he conducted his bookie business, whatever that was. I thought it was rather But later

funny because it was a tool shed.

Bill built - our business was very, very successful from day one.

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. A. Q. A. Q. Q. A. A. Q. A. Yours was some sort of an -It's temporary staffing. Q. Temporary staffing? And it We ran Temporary staffing.

Yes, we had many clients in Joplin. is, basically what it is is payroll. the payroll.

But it wasn't personal, it was

not Mr. Scearce's personal payroll, that money came from New York. for that money. Who did? Mr. Scearce did. Every month he would get He paid 55 percent

his commissions based on the hours that the people had worked, but the payroll was paid out of the Olsten office. That was some international link? Right. You're not talking about any kind of bookie money? Absolutely not. You're talking about payroll money? Yes. And he got paid out of New York? Yes, he did. Okay. I'm with you. We made a lot

He did very well from day one.

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. of money. But when we built the new offices we needed more space. Well, the executive offices on the north side of the building Bill had a very large executive office and down the hallway was an office for a sales person and then an office for myself as Office Manager, then we had an empty office. And there was a door right there. Well, Kenny was invited to move into that and he did his business there. I lived in a condominium

catty corner so I was there often evenings because of course when the phones are ringing you don't get any work done. And all the

time that I'm aware of it the only people that ever came by to visit Kenny - I mean you didn't see people coming in and out, it was just like his friends, you know, friends would just come by and have a cigarette with him, because I could hear them. But as far It

as Bill gambling, no, that didn't happen. didn't happen. I don't know why he doesn't

just tell the whole story. What is the whole story that you're -I mean that whole story is he said that he was out in a little shed, when in fact, he

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. Q. A. Q. Q. A. Q. Q. Q. A. Q. A. Q. A. was in these palatial offices. He was in a shed at one time -Yeah. -- and then moved into the office? Yeah, then he had his own personal office. And it had a separate entrance? It had a separate entrance. And that's where

I parked my car and that's where I came in and out. Did you know Mr. Lovett when he was with you? A. By then, yes, I knew he was a bookie.

And Bill knew he was a bookie? Bill has always known he was a bookie. When he first started renting him the little tool shed are you telling me that Bill knew he was a bookie at the first rent time? Yes. So you dispute that he did not know at first? A. Yes.

And Bill has admitted as I understand in the paper that he knew he was a bookie subsequent, but not at first. you're telling me is wrong? (Nodding head) That was a yes? That's what

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. Q. Q. Q. A. A. Q. A. Yes. I'm sorry.

Sometimes our record doesn't get that. Yes, it's hard - a nod is not - yes, he was aware. Because for five to seven years --

Did he ever get - go ahead. Well, I just wanted to give you a little more background because I told you that I knew he and Penny socially before I went to work for him. When he owned Shank's, which was an

Army/Navy surplus store it was the 5:00 o'clock - at 5:00 o'clock we all met at a bar and had a drink and it was at the Kitchen Pass at that time and there was a lot of betting going on there. Lovett. We all know Kenny It's just

I mean he's a nice man.

unfortunate. Let me ask you this question. anything else concerning -No. So that's it? Yes. So you're just taking issue with that one point, that he didn't know him it first? He's always known he was a bookie. Even before because of the prior -Is there

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Q. A. A. A. Q. A. Q. Yes, the social relation. Let's talk about for a minute, do you have any knowledge or belief that Bill ever involved himself in the gambling itself? No, I don't believe he did. Do you know if he ever received money other than the rent? No, sir, there would be no reason. I mean

I've heard from other people that he got into some type of financial situation. This was

after I had left and opened my own office, Olsten office in Arkansas. When I worked for

him the money was literally flowing in, and I know because the way his family works -You're talking about Bill Scearce? Bill, yes, the way his family works, their family trust, his wife is from a very wealthy family, that their taxes, I mean all of that is above board and it's done right. And

today Penny's father is still alive, but I will tell you that Mr. Leffen, and that is Bill's father-in-law, I mean he just made sure everything was done the way it was supposed to be done. So Bill Scearce is above board on everything

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. A. A. Q. A. Q. except the one issue that he knew Mr. Lovett was a bookie before he rented that tool shed to him? That's exactly right. That's the only issue? That's the only issue. Now who has asked you to come in to talk to me? I had talked to several of the Councilmen because everyone was urging me. Mike

Seibert, Mike Woolston, Morris Glaze were just encouraging me to tell what I knew. Well, rather than tell what I know to the Globe I just went to Bill and I said, you know, you need to step up and do the right thing. I was with him for two hours. Well,

subsequently after he admitted that, yeah, he'd lied a little bit - and of course like I said I had no idea if any of this is even unethical. If the FBI found anything illegal

he would have been charged. Exactly. So this is just going to the ethics of it. Is it unethical for him to - he's decided that he's entrenching himself and he is going

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. A. Q. Q. to stick this out, but -Do you feel that the fact that he lied to the Globe that he didn't know he was a bookie ahead of time, are you telling me that you believe there's something unethical about that? I don't know. And that's what Bill told you, it wasn't illegal to lie to the Globe? Which as a joke, you know, I mean like ha, ha. He was trying to make light of it. He

was so nervous, you know.

It was like we're

friends, Bill, I'm not here for any reason except I want to talk to you, the Globe wants to talk to me. Who was it at the Globe that wanted to talk to you? Carol Stark and Debbie Woodin. talked to them. And I have

We have stayed in contact

through this whole thing and finally Debbie said that it was the consensus of the Globe that so many people in this town know about the bookie operation that they did not feel like they needed to use me for a quote regarding that because there's too many other

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. people out there and that would not be fair to me. And I appreciate that. I'm chair of

the Historic Preservation Commission, I'm chair of the Design Review, I'm on several committees, volunteer committees. I do is volunteer now. Everything

But that's important

to me and I don't want to - I mean I love Penny, his wife. We grew up together. I'm

sorry this mess has happened. own up to it.

Bill needs to

If he's done something

unethical he needs to step down. That's where I'm at. What is unethical? Who

has told you something he has done is unethical is where I'm at? Nobody has told me anything. The only

comment that was made to me by Mike Seibert, and I've known Mike for a long time because he is a pharmaceutical manager and he inherited, so to speak, my father's territory, so I've known Mike for years and years. But Mike made the statement to me

when we were talking about it that he felt like it went against his character that he even would consider having a bookie in his office. Well, at that point in time I have

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. Q. A. Q. Q. A. Q. A. Q. A. to say everybody has their own opinion, but is that unethical? I don't know. And it's

my business as a citizen, but more importantly we need to get this mess taken care of. We have so much work to do.

Have you talked with Mr. Rohr about this? Yes. What's Mr. Rohr told you? He knows through Ron Richard and myself. Ronnie and I are very good friends, too. Tell me who Ron Richard is. Ron Richard is a senator from Joplin. in Jefferson City. really good friends. with Ron. He's

He and Bill used to be I spend a lot of time We

I'm very involved in politics.

just have kind of bandied around the fact that what is going on with Bill because this is not the Bill that we used to know. Mr. Rohr's first name is Mark? Mark. So you have talked with Mark Rohr about Bill's gambling issue? No, I see Mark enough that we talk about a lot of things because we're on -You're on boards with Mark Rohr?

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. A. Q. Q. A. A. Yes, and I go up to the Council meetings, and it's like after Council meetings where Bill I'm sorry, I know this is on the record - but when he has shown his ass. Bill? Scearce. And if the Mayor would use Roberts

Rules of Order we would not have all of this going on up on the dais. But she doesn't and

these men, they just - they embarrass themselves and they embarrass the citizens. I'm sorry. So I'll say something.

When you say somebody you're talking about all the Council members? I'm talking about Benji Rosenberg, I'm talking about Bill Scearce. I sit on boards

that if people were to speak to somebody else in the manner that they speak they would be excused from the meeting until they could get it together. There is yelling. And Bill

told me this, Bill Scearce told me this, I said, Bill, how can we fix this? want? He says I want him gone. What do you

Who is him? Mark. And I said why? And he said I don't And I said,

like the way he does business.

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. Q. Q. A. A. Q. Bill, you're one of nine people. He is very

- I don't know if you've met Bill yet, but he is just very adamant. I will tell you that

he has family history of Alzheimer's and some of the things that I have witnessed I'm thinking, Bill, you're losing it. Because

his dad used to come to our office and we would be responsible for Mr. Scearce. These people that are elected officials, have you considered running for any of them? I have. office. again? Tom. Tom. What happens, Tom, is that when you run In fact, I was asked to run for But what happens - is your name John

for office and if you are successful you no longer can sit on your boards. Historic

Preservation is very, very important to me. I have talked to other people on the commission and the City liaison and that job to me is more important than being on the Council. Who appoints you to that job? The Council. The Council as all of them?

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. Q. A. Q. A. Q. A. A. A. Q. A. Q. Yes, they vote. Is Mark Rohr on that board with you? He is on the Design Review Board. Oh, yes, the Design, okay. Is Historic

Preservation part of the Design Review Board? No, actually the Design Review Board falls under us because under our ordinance there is no such thing as a Design Review Board. a quasi board that's been kind of put together. And that's just Mark and -It's Mark. We have a representative from the It's

Downtown Joplin Association, we have representatives, we have two property owners, we have City liaison. We have a really good

cross section of people and it's mostly to supervise what's going on in our City. That's an unpaid board? Yes. Appointed by the City? Right, it's just to supervise what's being done in our historic commercial district. Does that help you? Yes. It works with the Historic Preservation

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Q. A. A. Q. A. Q. A. Q. Q. Commission so that we're all working together with the property owners to enforce standards. Did you have a conversation with Carol Stark about this issue? No. Has she talked to you recently? No. Has Mark talked with you about it recently? No. Has Bill talked with you other than that about this issue? No. No one really has? No, Debbie Woodin is the only one because when this suggestion of hiring an investigator, it's like, well, it's done now, Nancy. And I also see Debbie at City Council I go to City Council meetings a

meetings.

lot. I go to the pre-meetings, the planning meetings, but I've just gotten so disgusted. The three people that are on the Council that have talked with you about being here are whom again? About coming to see you?

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. A. Q. Q. A. Q. A. Q. Yes. Was just Mike Seibert. He called me. I think

I haven't talked to Mr. Seibert yet.

he's scheduled for today, in fact, so I'll be talking to him. And I'll be talking to

Morris Glaze. You also mentioned him. Well, I did talk to him because Mike wanted me to talk to Morris about what I knew as an employee of Bill's. Okay. Now you said obviously Bill was not

indicted? Right. And it's an old matter. So from your

standpoint what you're saying -I was shocked. It's like this was - you

know, the three guys are doing their time. And I remember reading what Bill had to say because they interviewed, the FBI interviewed him, and some of that was published in the Globe. I remember all of that and it's like

why is this coming out now? So other than really Mike Seibert and Morris Glaze suggesting that you come you're here to point out that Bill has lied about knowing -That's it.

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. Q. A. A. Q. A. Q. A. Q. A. Q. That's it really. He has lied about Lovett. Okay. Is that unethical? Well, that's the question, I guess that's the ultimate question that I have to view and I mean it certainly didn't occur while he was on the Council. I guess being asked, I don't

know if being asked by the Globe has any impact. I don't know. I don't think he had

even talked with the Globe, but in any case I don't know. looking at. three issues. That's one of the issues I'm As I told you we started at Now do you know anything about

Mr. Woolston and using his -No, I don't really. Nothing about that? No. And the note, I don't even understand. I don't know.

I mean I would understand if someone went in there and stole it off of Mark's desk. That's what Mark was saying. I mean he is such a professional. Who? Mark. He is totally professional and I think

it just has gotten to the point where he just

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (SWORN STATEMENT CONCLUDED) Q. A. Q. Q. A. has taken it and taken it and taken it and he finally said, gentlemen, I'm not taking it anymore. And I respect him for that. And

whatever it is, if it's the note, if that's going to be the ball breaker, you know, good. I don't know anything about it. Well, I know all about it. Well, good. Well, Scearce, I'm at his office

and he's like, oh, there's a big story behind that and I'm like, Bill, I don't care. I

care that you need to get this truth out. That's what I care about. I appreciate you coming in here and swearing under oath and talking with me, and I'm sorry to have been running behind schedule. That's all right. running behind. Whatever. A. I'm used to attorneys You do your best work.

Thank you very much for coming by.

You're very welcome.

Holliday Reporting Service, Inc. 417-358-4078

Nancy Morton

In Re:

Joplin Critical Investigation

Page 25 REPORTER'S CERTIFICATE

STATE OF MISSOURI ss. COUNTY OF JASPER I, SHARON K. ROGERS, Certified Court Reporter in the State of Missouri, do certify that pursuant to the foregoing Stipulation the witness came before me on the 14th day of November, 2013, was duly sworn by me, and was examined. That examination was then taken by me by

steno-mask recording and afterwards transcribed; said Sworn Statement is subscribed by the witness as hereinbefore set out on the day in that behalf aforesaid and is herewith returned. I further certify that I am not counsel, attorney, or relative of either party, or clerk, or stenographer of either party or of the attorney of either party, or otherwise interested in the event of this suit.

_________________________ SHARON K. ROGERS, CCR-650

Holliday Reporting Service, Inc. 417-358-4078