Idaho police chief investigated, accused of misusing tax dollars. What the prosecutor found

BOISE – An outside prosecutor tapped to investigate allegations that the Caldwell Police Department misused public funds said he won’t pursue criminal charges against Police Chief Rex Ingram.

This is the second time Idaho State Police opened an investigation into allegations against the chief. Based on an analysis of the evidence and state law, Boise County Prosecuting Attorney Alex Sosa concluded that Ingram either didn’t violate the law by misusing taxpayer money, or that the evidence was insufficient to prove he did, he wrote in a seven-page letter on his findings to state police.

Sosa wrote in the March 26 letter, which he provided to the Idaho Statesman upon request, that the city made a policy decision to grant the Caldwell Police Department and Ingram “more discretion” in determining which expenditures benefit the agency, which means the chief has the authority to determine how the money should be spent.

After the initial investigation began, former employee Nathan Douthit sued the police agency, alleging that its leaders misused public funds and fired him “because he dared question” the chief’s conduct.

Idaho State Police was tasked with investigating the allegations after an anonymous letter was sent to the Canyon County Prosecutor’s Office in March, claiming that trainings Ingram attended were actually “extravagant vacations” funded with taxpayer dollars, according to the letter, which the Statesman obtained through a public records request. Douthit’s attorney told the Statesman that Douthit didn’t write the letter.

Months later, in July, after Sosa reviewed the state police investigation, he concluded Ingram did not violate state law and that the city authorized the spending after a thorough approval process. But a new allegation that Ingram contributed to a political candidate with city money – which is illegal – reopened the investigation in October.

Caldwell Mayor Jarom Wagoner said state police reopened the investigation after Ingram spent $600 of the city’s money in September 2023 to participate in Ada County Sheriff Matt Clifford’s annual golf tournament, which benefited his re-election campaign.

He said the donation was an “unfortunate error” that city officials have since rectified.

Investigative records obtained by the Statesman, which included Sosa’s letter, confirmed that the campaign contribution triggered the renewal of the investigation.

Idaho State Police reports, which were acquired through a record request, showed that once investigators received a tip about the donation, they interviewed Caldwell Police Officer Allison Butler in November about the allegations.

Butler, who is on administrative leave, has since sued Ingram, accusing him of sexual harassment, violating her civil rights by creating a hostile work environment, discriminating and retaliating against her when she reported the concerns. Her attorney, Erika Birch, told the Statesman by phone that Butler wasn’t the one to inform state police about the contribution, and declined to comment further.

While evidence confirmed that city money was used for a campaign contribution, it was promptly remedied, according to Sosa’s letter, and the payment was likely made by Ingram’s then-executive assistant, and not the chief.

Sosa added that state law requires specific intent by the public employee to knowingly misuse public funds. (A receipt of the expense listed Ingram’s assistant’s email under the contact information.)

“Due to the expenditure being made by someone other than Chief Ingram, as well as the inadvertent nature of such an expense which was repaid,” he wrote, “there was no requisite specific intent to use such moneys, so there has been no violation of Idaho law.”

In a statement Wednesday, Ingram thanked Idaho State Police and the Boise County Prosecuting Attorney for “fully investigating this matter, yet again,” adding that public trust is crucial in maintaining the rule of law.

“This is exactly the outcome I expected, and I am not surprised by these findings,” he told the Statesman.

“I will continue to lead the Caldwell Police Department to the best of my ability, within the law, and will continue to meet or exceed industry best practices.”

Ingram’s spending is ‘policy decision,’ Sosa concludes

Ingram’s spending choices come down to an “inherent policy decision,” Sosa wrote in his letter. He said the city’s use of a multilevel approval process permits Ingram to make purchases that are used for the Police Department’s benefit.

“The city of Caldwell’s determination that an expenditure is for the use or benefit of the government entity is an inherent policy decision that must be made by the governing board,” he wrote in the letter. “The city of Caldwell is essentially delegating that policy decision to an individual such as Chief Ingram, or the department is a policy decision.”

Sosa’s determination falls in line with the city’s sentiments.

Wagoner, in an in-person interview in December, said that while the City Council approves police spending, city leaders, like Ingram, should also be trusted to govern themselves.

For taxpayers, Wagoner said, the city takes spending “very seriously” and is constantly adjusting its polices. He also said the city was transitioning to purchasing cards, also known as P-cards, for employees so that the city can have “greater control” on spending and allow for more transparency on purchases.

“I support the chief 100%. I know the council does as well,” he said, later adding that “the police chief is police chief for a reason, and should be able to make those decisions on his own accord.”

In recent months, Ingram, who took over the Police Department’s top job in 2022, has been embroiled in allegations. He’s facing two lawsuits between Butler and Douthit. A third lawsuit involving Ingram was filed against the city by former Human Resources Director Shelli Boggie, and was settled for $400,000.

Boggie alleged that the city retaliated against her for a recommendation concerning Ingram’s employment. Boggie in her lawsuit said she was tasked to investigate Butler’s complaint against Ingram in January 2024, and had asked for an outside law firm to conduct an independent investigation

Idaho Counties Risk Management Program, which provides liability and property insurance to local government agencies, also paid $150,000 to settle a claim filed by Ingram’s former executive assistant, Gabriela Gudino.

When state police interviewed Butler, she raised concerns about other times when she believed Ingram was misusing public funds.

According to the police reports, Butler also alleged that Ingram went beyond the department’s annual uniform allowance of $1,000, made purchases on his city credit card that went outside the department’s per diem policy and received rewards, like for hotels or airlines, when making purchases.

Sosa concluded Ingram wasn’t restricted by the city’s per diem rates or uniform allowance as an executive. He said that based on the city’s policies, it’s up to them to determine whether Ingram expends too much, and until then, it’s not a violation of the law.

Ingram’s attorney: ‘false and defamatory statements’

Concerns over the city’s support of Ingram and development projects have boiled over in recent weeks, with dozens of residents signing petitions to recall Wagoner and four of the city’s six council members.

Voters who signed Wagoner’s petition also took aim at him for not following Boggie’s recommendation, and raised concerns about the city’s decision to publicly support Ingram at a news conference hours after Butler’s lawsuit was publicized.

Wagoner urged the public during the brief February news conference to “avoid drawing any conclusions” while also saying, “We are confident in Chief Ingram’s leadership and professionalism, and firmly stand behind him during the legal process.”

Ingram previously alluded to the sexual harassment allegations during an unrelated interview regarding the spending concerns, and said he’d been cleared of any wrongdoing. He told the Statesman during that in-person interview in August that the allegations contain “a lot of defamatory information” about him that’s “completely salacious” and false.

“Those were investigated, and I was cleared of those as well,” Ingram said. “I don’t have any sustained sexual harassment complaints against me. I am not a sexual harasser. I despise and hate bosses that do that to their employees, specifically male bosses with female employees.”

Andrea Rosholt, an attorney retained by Ingram, in a letter to Douthit’s attorney asked him to request his client immediately stop making “false and defamatory statements” about Ingram. Rosholt also warned the attorney about statements he’d made about Ingram.

“To the extent that Mr. Douthit has conspired with third persons to defame Mr. Ingram, we intend to discover that information as well as to hold all parties responsible for their malicious and reckless actions,” Rosholt wrote in the August letter. Douthit’s attorney, Kevin Dinius, provided the letter to the Statesman.

“As I am sure you appreciate, these are very serious accusations that can impact both Chief Ingram’s reputation in the community and within the Police Department and, potentially, his livelihood,” she continued. She threatened to sue over defamation of character if the statements don’t stop.

Dinius declined to comment Thursday.

Ingram said he was hired to “completely change the culture” at the Caldwell Police Department. In the past two years, with the increase of the department’s budget by millions, he said he’s helped bring the agency into the 21st century through needed training, conferences and events.

Ingram said those changes upset some. That, coupled with his bold approach as a younger police chief from California, he said, has made him an easy target.

He compared the internal complaints to a child being frustrated that a parent is taking away their Xbox.

“No one wants Daddy to take the Xbox away. That’s really what it comes down to,” Ingram told the Statesman. “So I’m kind of the stepdad that came in, and now I’m telling them, ‘No, you can’t go there.’ ‘Oh, but I’ve always gone with Johnny to soccer practice.’ ‘Well, not under my watch. You’re not doing that,’ right?

“So we’re dealing with adults, but ultimately, they’re used to a certain way, and that’s been the culture here.”