McKEE, Ky. (WKYT) - The Jackson County Fiscal Court and the Sheriff's Office are at odds.
"It's obvious that something's not operating as it should," said Judge-Executive William Smith.
When asked if there was anything improper going on under his command, Sheriff Denny Peyman had a short answer, "No, sir!"
But the Fiscal Court is so concerned they formed a new Jackson County Police Department made up of three of Peyman's four deputies. Fiscal court officials say one didn't pass a drug test. Peyman is still the sheriff. They say his office owes the fiscal court more than $278,000 in payroll assistance from when he took office in January 2011 until this past August.
"There are a number of reimbursements that he receives that somehow didn't make their way to the fiscal court," said Judge-Executive Smith.
"I haven't heard it," he said when asked if the sheriff had given a reason. Sheriff Peyman told WKYT his office has been doing more law enforcement and that costs more money.
"If you want to talk dollar amounts, when it comes back, I think you'll be surprised at what it is. It's not what they say it is," said Sheriff Peyman.
Judge-Executive William Smith wants the state auditor or attorney general to investigate Peyman. He said everyone needs to be investigated.
"I was the one that called the FBI in. I was the one that called for the audit to come back. I say if we're going to expose it, we're going to expose it all. There are criminal charges we're looking at after talking with the FBI and with the attorney general's office, so they've asked me not to say much about that," said Peyman.
"Within your department?" asked WKYT reporter, Sean Moody.
"Within the whole system here. The local government, some in my own department," said Peyman.
The fiscal court also filed a claim against the sheriff's public official bond, which he must have to hold office. They also said all calls to Jackson County dispatch will now go to the new Jackson County Police Department.