The insurance company for Peoria’s public television station is suing two former WTVP personnel in an attempt to recoup money paid out on a claim of embezzlement, fraud and conspiracy.
Legal representatives of the Cincinnati Insurance Company filed a lawsuit in Peoria County Circuit Court last week, naming the Estate of Lesley Matuszak, former WTVP CEO, and former WTVP Director of Finance and Human Resources Linda McLaughlin as defendants.
The suit seeks at least $250,000 in payment from McLaughlin and the Matuszak Estate, in addition to attorneys’ fees and the costs associated with the insurance company’s investigation to decide whether they would pay out the claim.
The number comes from the amount the Cincinnati Insurance Company paid out to the Illinois Valley Public Telecommunications Corporation, WTVP’s parent company. The $250,000 is the maximum coverage limit the company could pay out on the claim. The suit says losses from the alleged fraud climbed upward of $375,000.
The practice of insurance companies suing an at-fault party to attempt to recover costs paid out for a claim is a common legal maneuver called “subrogation.”
In 2023, Lesley Matuszak, a community figure and former leader of the Boys & Girls Club of Greater Peoria, resigned from her position at WTVP. She died a day after her resignation. Later, Peoria County Coroner Jamie Harwood ruled Matuszak died by suicide.
A police report obtained by WCBU in 2024 shows the Peoria Police Department had evidence to support charging Matuszak with forgery and embezzlement prior to her death. All other names in the report were redacted.
McLaughlin never faced charges related to the alleged fraud. The Cincinnati Insurance Company suit is the first document to name her as a co-conspirator.
The suit alleges Matuszak and McLaughlin used company credit cards on improper and luxury goods. It further states the pair forged documents, misrepresented the station’s financial standing to the board of directors, and liquidated $320,000 from WTVP’s investment account to “conceal the theft of company funds.”
Following Matuszak’s death and the discovery of financial disarray at the station, WTVP made significant efforts to improve their financial standing and restore public confidence.
The station replaced their CEO and financial director, slashed its budget by 30% and saw an unprecedented overhaul of the board of directors with resignations from 11 members.
The station continues to work with the federal Corporation for Public Broadcasting after the organization held up federal funding to make way for extensive audits.
A case management conference for the Cincinnati Insurance Company lawsuit is scheduled for Aug. 22.
