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A Missouri State Auditor’s Office investigation into a tiny village near Kansas City found credible conflicts of interest between the village’s elected board and a prominent developer, marking the latest findings in a scandal that resulted in the arrests of the town’s elected officials.

An investigative report released Monday by state Auditor Scott Fitzpatrick, a Republican, mirrored a 2023 investigation by The Star into River Bend, a small village in northern Jackson County.

Every member of the village’s elected board was connected professionally or through family to Jack Mitchell, an influential marijuana businessman who pursued a weed-based entertainment district called the Smokey River Entertainment District, The Star previously revealed.

“Our review found concerns about trustee relationships with a developer are credible, and the village did incur significant expenses related to the development project,” the report from Fitzpatrick’s office concluded, acknowledging that Mitchell has since scrapped the project and the elected officials at the center of the controversy had been arrested.

The report marks the culmination of a yearslong saga that upended the tiny village north of the Missouri River. Home to various industrial businesses, the sparsely populated village has long confounded local and state officials and business owners.

River Bend is classified as a village — instead of a city or other municipality — under Missouri law due to its small population size. Its exact population has been disputed, with estimates ranging from three people to 11.

State investigators also detailed the financial fallout of the controversy in Monday’s report, showing that the village’s spending skyrocketed in 2023 related to the failed development project. The village, the report said, has recouped only a small portion from Mitchell.

The report found that the village’s legal expenses jumped 1,100% from roughly $10,000 in 2022 to $120,000 in 2023. A large portion of the spending — $113,000 — related to Mitchell’s proposed entertainment district.

“The village entered into an agreement with the developer to reimburse up to $100,000 of these expenses,” the report said. “However, the village has only received approximately $42,000 in reimbursement.”

Fitzpatrick’s office also found that the village had not submitted its required 2024 financial statement to the state. Monday’s report referenced the village’s clerk, who said her predecessor “failed to retain records, making it difficult to create” the statement. The village submitted that statement last December.

State officials began investigating the village in 2024 after receiving a whistleblower complaint alleging nepotism and conflicts of interest. Monday’s investigative report marked the formal end of that investigation.

“We will issue a closure letter recommending the Board of Trustees ensure it refrains from creating conflicts of interest or the appearance of conflicts of interest with village projects, seek reimbursement for the remainder of legal fees in accordance with the village’s agreement, submit financial statements timely, and develop policy to maintain all records as required by law,” the report said.

Mitchell, in several text messages to The Star, said he had “a lot of opinions” about the report.

“We had very expensive attorneys who told us everything was being done legally and without conflict,” Mitchell said. “We would definitely have them review any findings that are contrary to that.”

Brandon Decker, who owns a trucking business in River Bend and has long opposed Mitchell’s influence in the village, expressed disappointment at the state investigation’s findings in a statement to The Star on Monday.

“I was hoping their investigation was more than just a do better in the future type outcome,” said Decker, who added that he believes Mitchell still owes the village thousands of dollars. “There are still different entities, law firms and different firms reaching out to the village for past due invoices estimated at 30K-50K that are all from Jack Mitchell’s development plan.”

River Bend, founded in 1993, has for years fostered a loose, business-friendly culture that attracted industrial warehouses and businesses.

The little-known municipality’s problems began soon after the proposed development from Mitchell, a businessman, attorney and former board member of MoCannTrade, the state’s powerful marijuana industry group.

In late 2022, Mitchell announced his ambitious plans for the Smokey River Entertainment District, which called for an amphitheater and food and drink spots.

The area was also used as festival grounds and hosted celebrities such as Ric Flair, Wiz Khalifa and Mike Tyson. One man overdosed at one of the festivals after taking “Molly” — a common nickname for MDMA — and later died, The Star previously found.

In 2023, The Star spoke with village business owners and stakeholders who alleged Mitchell had effectively taken control of the municipality through his ties to the board. They worried about conflicts between the board’s decisions and Mitchell’s business and whether the officials had lived there long enough to be on the board.

Mitchell pulled his plans for the entertainment district days after The Star inquired about his connections to the village board. The village’s head of zoning resigned a day after the newspaper published the story about those connections.

In the months that followed, every member of the village’s five-person elected board was arrested on election-related offenses, alleging they did not live in the village long enough to serve on the board. Three have since pleaded guilty to misdemeanor offenses, while two others entered into diversion agreements with the Jackson County Prosecutor’s Office.