Additionally, former Go Lake Havasu employee Regan Ross filed a complaint against the organization seeking $250,000 after being fired from her job.

Mr. Smith was hired as Go Lake Havasu's new CEO in October and assumed his role on December 4th. In August, she was placed on leave from her job in Visit Bastrop, Texas, a small city located about 30 miles southeast of Austin.

The internal investigation began with complaints about Mr. Smith's financial management of his tourism marketing agency, according to public records.

Smith said in an email that he began searching for new employment opportunities after a change in leadership at both the City Manager and City Council levels in Bastrop.

“The Board of Directors and I have reached a mutual decision to resign from Visit Bastrop without cause. My contract states that 'without cause' means 'willful misconduct, sexual harassment, fraud, or fraud. “is defined as something that has not been documented or proven,” she said.

Go Lake Havasu Executive Committee Chair Heather Petaiszyski said the board has the full support of Smith and is confident she will excel in her role.

“The ongoing issues regarding Susan's employment prior to Go Lake Havasu are private matters for Susan to manage,” Petaiszyski said.

He also said the board followed a thorough process to screen candidates, including background checks and witness interviews, with all tests yielding positive results.

Bastrop Investigation

The Bastrop City Council authorized the investigation in August after receiving verbal and written complaints from four employees, according to public records provided by the city.

In September, the Bastrop City Council unanimously voted to cut Visit Bastrop's budget by 15% while the investigation is still ongoing. Visit Bastrop staff declined to comment for this story.

On December 18, less than two weeks after Smith arrived in Havasu, the Bastrop City Council heard the initial results of the investigation.

According to the report, “From 2021 to 2023, approximately $70,000 in public funds from the City of Bastrop was used on Visit Bastrop credit cards without receipt statements or other required documentation, and the CEO It turned out to be approved by Smith.

Smith said Visit Bastrop's contract with the city of Bastrop allows the town to audit the agency's finances at any time.

“During my tenure, all of Visit Bastrop's financial policies were followed, with the Chairman of the Board and CFO approving all expenditures. Annually, a third-party auditor reviews the financials and the City of Bastrop's Chief Financial Officer The person in charge will approve it,” Smith said.

The report also said Smith spent public funds and that “the city remains actively investigating the total amount of public funds.”

Meanwhile, a Go Lake Havasu employee who was fired shortly before Smith was hired filed a complaint against the organization and the City of Lake Havasu.

Regan Ross, who worked as destination development director for Go Lake Havasu, was placed on administrative leave on Sept. 28 and fired the next day.

Mr. Ross has now filed a notice of claim against the city and a claim for wrongful termination with the Go Lake Havasu Board of Directors.

Ross claims he was fired after conducting his own investigation into CEO candidates. Mr. Ross and several other Go Lake Havasu employees applied for the CEO position, but the board chose to consider only external candidates, according to the notice of claim. Mr. Ross then spoke with a Texas contact familiar with one of the candidates to vet their suitability.

“I feel there should be extensive scrutiny and transparency when hiring CEOs, especially CEOs who manage taxpayer funds,” Ross said. “I do not understand why the Executive Committee of the Go Lake Havasu Board of Directors does not do its due diligence when vetting CEO candidates.”

Her demand letter to Go Lake Havasu said the organization had failed to “put the organization's interests first,” resulting in a “breach of the trust and fairness owed to her as an employee.”

Through her lawyer, Ross is demanding $250,000 and an apology from Go Lake Havasu.

Go Lake Havasu operates under a $1.6 million annual contract with the city to provide tourism marketing services, which is funded by the city's hotel and restaurant taxes.

Last June, the City Council voted to approve a six-year extension to the organization's contract. Former Go Lake Havasu CEO Terrence Concannon resigned last June, eight days after extending his contract with the city.

The Lake Havasu City Council does not have direct oversight of Go Lake Havasu, but City Manager Jess Knudson has a vote on the executive committee, and Councilman David Lane serves as the council's liaison. as a non-voting committee member.

The Board of Directors consists of 11 other voting members and 4 ex-officio non-voting members. Voting members include business executives and tourism-related people.

Knudson said the board did its research before hiring Smith and that the process was intentional.

“My focus is on what Go Lake Havasu and its employees are doing to promote tourism and business in Go Lake Havasu City, because that is what matters. '' Knudson said. “I have been impressed with what Susan has achieved in recent months and feel great about the future.”

Mayor Cal Sheehy said the city council has no control or control over the organization's operations and hiring decisions are made by the board, but the city was consulted during the hiring process.

“In this particular instance, the board did rely on the city's human resources department for process expertise, but it was done to support the organization, not for the organization.” Mr. Sheehy said.

Sheehy said the city will continue to work with the organization as long as Go Lake Havasu meets its contractual obligations.

“Tourism is one of the economic drivers within our community, and it is important that we invest in economic development and tourism,” Sheehy said. “We will continue to make these investments to keep our economy strong.”

Smith also said he was thrilled to be selected for the Go Lake Havasu team and looks forward to continuing to serve the community.

“When the recruiting team asked me why I was interested in pursuing an opportunity at Go Lake Havasu, I knew I wanted to take my career to the next level, share my expertise in destination management, and join the tourism industry. The industry has communicated a desire to improve the economic impact of our company and community,” Smith said. “That’s as true as ever.”