An independent investigation has concluded that Delray Beach did not substantively violate laws or city policies while it worked with bond issue underwriting companies that employed Kevin McCarty, husband of former County Commissioner Mary McCarty.
Law firm Brown, Garganese, Weiss & D’Agresta, P.A. was hired to conduct the probe after the McCartys were charged with violating honest-services law, said the report submitted March 23 by attorney Usher L. Brown.
The city was concerned because during her service to the county, Mary McCarty gave discretionary funds to Delray Beach while her husband was employed by firms that were underwriters on several of the city’s bond transactions, the report said.
The investigation did not reveal evidence that the McCartys received inside information on bond issues that gave Kevin McCarty an unfair advantage.
The report also found that Mary McCarty’s distributions of funds to Delray Beach were neither improper nor disproportionate to other cities in her district.
However, the city practice of using one underwriting firm, and of following one person as he moved from one underwriting firm to the next because of his longtime relationship with Delray Beach, doesn’t follow best practices established by the Government Finance Officers Association, the report said.
It recommended the city revise procedures to follow best practices.
— Margie Plunkett