A former longtime president of Shakopee's Derby Days Inc. pleaded guilty this month to two counts of fraud.
Jack McGovern, 52, pleaded guilty Aug. 18 to one count of financial transaction card fraud, a felony, and one count of theft by swindle, a gross misdemeanor. He used $776 in organization funds to pay his cable bill and buy gas.
McGovern resigned as president last summer after 18 years as head of the nonprofit organization that runs the annual community festival.
The festival's cancellation was announced in February, prompting an investigation and leading to the filing in May of charges against McGovern.
Investigators said they were hampered by statute of limitations restrictions and businesses' reluctance to comply with subpoenas. Police could only search records within the last two to three years because of legal restrictions, according to Capt. Craig Robson.
"We felt there were some improprieties before that, but we weren't able to use them in the criminal case," he said.
Robson added: "Some of the record keeping was not well-established, and that also hampered the investigation. There was a lot of handling of cash, and they didn't have very well-established records of cash."
McGovern's sentencing is scheduled for Oct. 31 in Scott County District Court in Shakopee.