The Kansas Department of Commerce hired a man convicted of multiple financial felony crimes to oversee millions in federal pandemic aid. He then worked as an interim city clerk in a small Kansas town.
Now he’s missing.
Jonathan L. Clayton was last seen Aug. 3. The 42-year-old had been working for Peabody, population 937, first as dogcatcher and more recently as interim city clerk after serving as the director of economic recovery for the Kansas Department of Commerce. He disappeared more than two weeks ago as his criminal history was becoming more widely known locally and his handling of American Rescue Plan Act, or ARPA, funds came under increased scrutiny.
Since he disappeared, his work for various Kansas government agencies and nonprofit organizations — including the Kansas Department of Commerce, the city of Peabody, a downtown Peabody association and an obscure cemetery district in Mullinville— has been examined internally and has drawn the attention of law enforcement. He also sent out a cryptic email accusing Kansas officials of wrongdoing and hinting that he is dead.
Clayton’s husband, Christopher King, said in an interview on Monday that Clayton is under investigation for his handling of money for the state of Kansas and while serving multiple board positions in his hometown of Mullinville, a small town west of Greensburg. The Kansas Department of Commerce said it’s assisting state and federal law enforcement.
Clayton previously pleaded guilty to theft and forgery in Pennsylvania stemming from his misuse of an employer’s credit cards to bolster his and his partner’s fledgling theater company. He was sentenced in 2018 to five years probation and was ordered to pay $210,000 in restitution.
Less than a week after he was reported missing, Clayton claimed in an email purporting to be from him that his disappearance was related to his role in a “scheme” to steer pandemic aid toward pre-selected awardees at the direction of Lt. Gov. David Toland, a Democrat who is also the Kansas secretary of commerce.
Clayton alleged that Toland ordered him to be on the board of directors for the Iola Theatre Association, which Toland also served on until last year, and to fundraise for the restoration of the historic theater in Toland’s hometown during work hours at the Commerce Department. Records show that Clayton and Toland did serve together on the board.
Asked about Clayton’s allegations against Toland and other Commerce officials, a Department of Commerce spokesman did not directly answer the question and said in a statement that the agency “has been made aware of allegations of misconduct against a former employee in connection to activity that occurred after they left state employment.”
“We are reviewing the matter to determine what, if any, impact the alleged activity may have to the agency or community partners,” Commerce spokesman Patrick Lowry said.
He added that due to the ongoing investigation, “we will have no further comments at this time.”
‘Working hard to find him’
Clayton’s email came amid the growing focus on his past and new allegations of misconduct related to his time in Peabody and Mullinville.
“The only thing I have to say is that we’re continuously, every single day, working hard to find him,” said King, who sits on the Peabody City Council. “And there are lots of things that will come out later that I’m not at liberty to speak about because it involves the investigation.”
Clayton, as director of economic recovery for the Kansas Department of Commerce, oversaw programs involving millions in American Rescue Plan Act funds. He was hired as a regional project manager on Feb. 23, 2020, and was promoted Aug. 22, 2021.