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An investigation by the Missouri state auditor’s office in a small village near Kansas City found a credible conflict of interest between the village’s elected board and a major developer, marking the latest findings in a scandal that has resulted in the arrest of the town’s elected officials.
An investigative report released Monday by State Auditor Scott Fitzpatrick, a Republican, reflects a 2023 investigation by The Star in River Bend, a small village in northern Jackson County.
Every member of the village’s elected board was connected either professionally or through family to Jack Mitchell, an influential marijuana businessman who was behind a weed-based recreation district called the Smoky River Recreation District, The Star previously revealed.
“Our review found that the concerns about the trustee’s relationship with the developer are credible, and that the village has incurred significant costs associated with the development project,” the report from Fitzpatrick’s office concluded, acknowledging that Mitchell canceled the project and arrested the elected officials at the center of the controversy.
The report marks the culmination of a years-long saga of uplifting the small village north of the Missouri River. Home to a variety of industrial businesses, the sparsely populated village has long puzzled local and state officials and business owners.
River Bend is classified as a village — rather than a city or other municipality — under Missouri law because of its small population size. Its exact population is disputed, with estimates ranging from three to 11 individuals.
State investigators also detailed the financial consequences of the dispute in Monday’s report, showing increased village costs in 2023 related to the failed development project. According to the report, the village received only a small portion back from Mitchell.
The report found the village’s legal expenses increased 1,100% from about $10,000 in 2022 to $120,000 in 2023. The bulk of the spending — $113,000 — is related to Mitchell’s proposed recreation district.
“The village has contracted with the developer to reimburse up to $100,000 of these expenses,” the report said. “However, the village has only received about $42,000 in reimbursements.”
Fitzpatrick’s office also found that the village had not submitted its required 2024 financial statements to the state. Monday’s report cited the village clerk, who said her predecessor “failed to keep records, making it difficult to create.” The village submitted the statement last December.
State officials began investigating the village in 2024 after receiving whistleblower complaints alleging nepotism and conflicts of interest. Monday’s investigative report marked the formal end of that investigation.
“We will issue a closure letter recommending that the board of trustees develop a policy to prevent conflicts of interest or conflicts of interest in village projects, refund the remaining amount of legal fees in accordance with the village agreement, submit financial statements on time and keep all records in accordance with the law,” the report said.
Mitchell told The Star in several text messages that he had “a lot of opinions” about the report.
“We had very expensive lawyers who told us everything was being done legally and without controversy,” Mitchell said. “We certainly want them to review any findings that are contrary to that.”
Brandon Decker, the owner of a trucking business in River Bend, who has long opposed Mitchell’s influence in the village, expressed disappointment with the state investigation’s findings in a statement to The Star on Monday.
“I was hoping that their investigation would not only do a better job in future types of outcomes,” said Decker, who believes Mitchell still owes the village thousands of dollars. “There are still various organizations, law firms and various firms approaching the village for past invoices estimated at 30K-50K which are all from Jack Mitchell’s development plan.”
Inside the village
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 troubles began after a 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 Smoky River Entertainment District, which called for an amphitheater and food and beverage venues.
The area was also used as a festival arena and hosted celebrities such as Ric Flair, Wiz Khalifa and Mike Tyson. A 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 that Mitchell effectively took control of the municipality through his relationship with the board. They were concerned about conflicts between the board’s decisions and Mitchell’s business, and whether the executives were 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 zoning chief resigned after the newspaper published stories about those connections.
In the months that followed, each of the village’s five elected board members were arrested on election-related charges, alleging that they had not lived in the village long enough to serve on the board. Three have since pleaded guilty to misdemeanor charges, while two entered into plea agreements with the Jackson County Prosecutor’s Office.
