Ten out of 30 replacement bonds sold had lower rates of return and state auditors estimated the net economic loss of more then $700,000 through transactions that went through a Russellville-based brokerage, according to documents KARK obtained through confidential informants and a public records request.
Documents from the Treasurer's office show, for example, a transaction through St. Bernard Financial Services on Nov. 21, 2011. Shoffner's office sold a bond with a 2.5 percent rate to St. Bernard and on the same day it bought a bond from St. Bernard that had a 1.5 percent rate.
St. Bernard CEO Robert Keenan said: "None of these trades lost money...all these were made with a projection it was going to make more money than they would have otherwise."
A draft report from the state Division of Legislative Audit shows eight bond transactions with St. Bernard resulted in $783,835 net economic loss. One trade through Delta Investments lost $7,733, six transactions through Morgan Keegan lost $25,123.
Shoffner would not speak to KARK and neither would her Chief Deputy Debbie Rogers when we asked for comment concerning these transactions.
State Sen. Jason Rapert says the transactions are highly questionable. Rapert, who sits on the Legislative Audit Committee, said: "She (Shoffner) has made it very clear she can do anything she wants to do with that office."
The committee is slated to meet on Friday to review the results of this latest audit and to ask Shoffner to explain the transactions.
In September, the committee had to subpeona Shoffner to get her to attend their hearing concerning other losses and questionable transactions. Among them a $100 million investment with St. Bernard on a bond deal offering the same rate and the same yield as other investment groups who got $25 million from Shoffner's office.
Shoffner told the committee then that she did not know the answer but would research it, according to excerpts from the minutes of that meeting.
In the aftermath of the September hearing, lawmakers directed state auditors to look into the Treasurer's transactions from January 1, 2007 through May 17, 2012.
The FBI said it cannot confirm nor deny if it is conducting an investigation.