Ex-health district director indicted on 7 counts

URBANA – The former executive director of the Champaign-Urbana Public Health District has been indicted by a Champaign County grand jury on seven felony counts stemming from his behavior while in office in 2006 and 2007.

State's Attorney Julia Rietz was attending a conference Friday and could not be reached for comment, but Champaign police detective Pat Kelly, who has investigated Vito Palazzolo for more than two years, said Rietz planned to make a statement Monday about the charges against Palazzolo, 53, who was fired in August 2007.

The indictment returned Thursday charges Palazzolo with:

– Theft of governmental property, a Class 4 felony, alleging that between March 7 and Nov. 13, 2006, he charged less than $300 worth of property on a health district credit card in a series of five transactions.

– Official misconduct, a Class 3 felony, alleging that on Nov. 13, 2006, he used a health district credit card to buy a personal meal.

– False entries, a Class 3 felony, alleging that on Nov. 13, 2006, he made a false entry into a health district statement in that he recorded a credit card receipt as having the purpose of a meeting with a local businessman.

– Theft of governmental property, a Class 4 felony, alleging that on Jan. 17, 2007, he obtained wooden cabinets from 217 N. Broadway Ave., U, to permanently deprive the district of them.

– Official misconduct, a Class 3 felony, alleging that on Jan. 17, 2007, he took the wooden cabinets from 217 N. Broadway Ave., U, "while acting in his official capacity with the intent to obtain a personal advantage for himself."

– Misapplication of funds, a Class 3 felony, alleging that on Dec. 15, 2006, he misapplied district funds by entering into an agreement to repay a student loan for a dentist hired by the district after being told the agreement was not authorized.

– Theft of governmental property, a Class 4 felony, alleging that on Aug. 14, 2006, he obtained control over credit on a Visa credit card issued to the health district.

A Class 3 felony carries penalties on conviction ranging from probation to two to five years in prison; a Class 4 felony carries penalties ranging from probation to one to three years in prison.

Judge Heidi Ladd issued a warrant for Palazzolo's arrest on Thursday with a bond of $10,000.

Kelly said it was his understanding that Palazzolo, who lived in Idaho after leaving Champaign, has an attorney who has been in contact with local prosecutors, but he did not know that attorney's name nor where Palazzolo was living.

Palazzolo's 17-month stint at the helm of the local health district, which has its office at 201 Kenyon Road, C, was characterized by allegations that he routinely abused public resources totaling in the thousands of dollars.

Records indicate he used district credit cards to make purchases such as coffee, tools, big-screen televisions for his personal office and a conference room, and a pickup truck.

The district's finance director, Shelley Scott, reported the misdeeds to the board in April 2007 and was subsequently dismissed. Palazzolo was placed on paid leave in May 2007, being paid about $9,300 a month until he was fired in August 2007.

Palazzolo joined the district in January 2006 at a salary of $91,059. He came here from Ottawa County, Mich.

At the time he was fired, he was earning $111,264. The three-member health board that dismissed him consisted of Pius Weibel, chairman of the Champaign County Board; Linda Abernathy, supervisor of the City of Champaign Township; and Carol Elliott, supervisor of Cunningham Township.

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