Case Review: A Small Town’s Path to Crisis

This summer, a small town faced a public leadership crisis when its top administrative official and a senior elected leader were arrested.

The charges included improper access to a law enforcement database, bid rigging, and commercial fraud against the government. Prosecutors alleged the senior elected leader influenced a consultant’s report on whether to dissolve the town’s police department and directed the consultant to recommend appointing him as chief of police if the department were retained.

The town’s top administrator was also charged in connection with the same consulting contract, facing allegations of bid rigging and conspiracy.

Earlier in the year, the senior elected leader had been dismissed from the town’s police department for alleged misconduct. Within days of his dismissal, the council voted to dissolve the department — a decision prosecutors later described as retaliatory and that was reversed soon afterward.

While the arrests were the most visible turning point, they reflected a longer pattern of governance breakdowns — including blurred boundaries, procedural missteps, and conflicts of interest that, according to residents and observers, eroded trust between elected officials, staff, and the public.

The breakdown did not happen overnight. It developed through a series of missed opportunities where stronger policies, clearer processes, and early intervention could have made a difference. The following areas illustrate where safeguards and consistent leadership practices could have prevented escalation.

1. Define and Enforce Leadership Standards

When leaders are allowed to shape processes to their personal advantage, or even appear to, credibility suffers.

Faro Point’s approach: We would help governing bodies put leadership standards in writing, make them specific and values-based, and design fair processes for evaluating leadership behavior. We would also create safe channels for peers, subordinates, and external partners to raise concerns without fear of retaliation.

2. Implement Safeguards Against Conflicts of Interest

Allowing someone with a personal stake in an outcome to influence decisions invites bias and undermines trust.

Faro Point’s approach: We would assist organizations in identifying where personal interests could influence decisions and put safeguards in place. This could include creating standard procedures for recusals, bringing in outside reviewers, and documenting every step so the reasoning is transparent to stakeholders.

3. Launch Assessments of Sensitive Systems and Procurement

The criminal charges in this case involved both improper system access and irregularities in contracting — areas where oversight is essential.

Faro Point’s approach: We would launch assessments of how sensitive systems and procurement processes are managed. These reviews examine who has access and why, evaluate transparency, and recommend verifiable controls. We would also advise on procurement practices to ensure they are open, competitive, and well-documented.

4. Intervene Early

The events leading up to the arrests included procedural disputes, leadership conflicts, and growing public controversy — most visibly, the council’s vote to dissolve the police department without public input. That decision drew sharp criticism from residents, led to recall efforts, and prompted a public statement of concern from law enforcement leadership. Each was a chance for early intervention.

Faro Point’s approach: Through independent fact-finding reviews, leadership coaching, targeted training, mediation, or process adjustments, we would help leaders recognize early warning signs and act before issues escalate. The goal is to resolve problems while they are still manageable, not after reputations and relationships suffer.

Key Takeaway

This crisis highlighted how the absence of strong guardrails, consistent oversight, and proactive intervention can allow governance challenges to escalate. Preventing this kind of breakdown requires structure, accountability, and the willingness to act early. At Faro Point Consulting, we help leaders put the right systems in place before problems escalate.