By PHYLLIS ZORN

Staff writer

Peabody City Council members on Monday hired a permanent city clerk to replace an interim clerk found dead Aug. 18 after more than two weeks missing.

Jonathan Clayton, appointed interim city clerk during a rash of firings and resignations, was promoted from dogcatcher after Jylle Wilson was fired June 3.

He went missing Aug. 3 while state being investigated for his handling of COVID-19 grant funds in both Peabody and Mullinville. He was found dead more than two weeks later in his wrecked pickup.

Council members transferred treasurer Rayna Crawford to the clerk position.

They also hired Diana Baker as city treasurer and Eric Barnes as public works superintendent.

Before Clayton’s disappearance, he was aware Kansas Department of Commerce was investigating how COVID-19 grants given to Peabody Main Street Association and Mullinville Community Foundation were handled — or possibly mishandled — by him.

Commerce canceled a $1.5 million Main Street grant July 25 for failure to provide required documentation, then demanded return of $740,000 in grant money already extended.

Commerce later gave Main Street more time to gather documentation to show how funds had been handled.

Commerce spokesman Pat Lowry said the investigation was launched after the department became aware of allegations of misconduct by Clayton.

Clayton disappeared Aug. 3 and was found dead in his wrecked pickup Aug. 18. At the time, he also was under separate investigation for alleged theft from Mullinville Community Foundation and a cemetery district.

On Aug. 6, Commerce gave Main Street until Aug. 21 to return $740,000 already given to the organization.

Commerce extended the deadline until Sept. 4. On Sept. 4, it extended the deadline again, this time to Sept. 18.

Lowry said Commerce was pleased with how documents were being produced by board members and was working with them to produce what was needed.

Nevertheless, a lawsuit Commerce filed Aug. 7 against Mullinville Community Foundation continues.

In that lawsuit, Commerce demanded return of $425,398 in grant money, of which it believed $211,251.67 was not expended.

Clayton was responsible for sending Commerce reports about that grant.

A restraining order was issued Aug. 12 on Haviland State Bank and Mullinville Community Foundation to prevent withdrawals, payments, transfers, or other access of any funds in a Haviland State Bank account owned by Clayton. Business records for that account were subpoenaed Aug. 29.