JACKSONVILLE, Fla. – A city investigation into Joe Peppers, the former head of the Kids Hope Alliance, uncovered he was having an intimate relationship with a senior leadership team member that went sour while they both worked at the city-funded office. An audit also found that Peppers tried to funnel grant money to friends and business associates who may have not qualified for the grant.
The investigation that was released Monday began in August of 2019 after the Office of Inspector General (OIG) received an anonymous letter detailing issues at the agency that oversees children’s programs in Jacksonville.
The letter outlined concerns involving KHA operations, senior leadership, mismanagement within the organization and allegations of inappropriate relationships involving Peppers.
During its investigation, the OIG conducted interviews that seemed to back up those initial claims.
Peppers was first placed on administrative leave on Aug. 15, 2019, as the investigation got underway. He then handed over his city-issued cellphone, a phone that would later become key to the city’s investigation.
Through interviews, investigators found that Peppers had a consensual sexual relationship with an unnamed senior leadership team member who directly reported to him from Aug. 2018 until Feb. 2019.
The issues cropped up when that relationship began to deteriorate.
While there are no existing City of Jacksonville policies and/or procedures that address non-professional relationships between supervisors and subordinate employees, investigators found that Peppers “may have violated City of Jacksonville Workplace Violence, Directive...by sending text messages and comments (refer to page 13), that “… expressed or implied threats, remarks or other acts… or subjected another individual to emotional distress … and expressed verbal intimidation …” to the senior leadership team member.”
On April 15, 2019, the investigation found that Peppers sent the subordinate a text message stating verbatim, “You’re only loyal when your life or well-being are threatened” and “this is who I see now” referring to six different interracial pornography images sent as part of the text message.
Peppers also said he would disclose personal information to the team member’s child, the investigation found.
The senior leadership team member said Peppers “crossed the line” when he mentioned her child, according to the investigation.
The text message came a few months after the senior leadership team member told Peppers she planned to resign in August of 2019. After the relationship ended, Peppers began treating the senior leadership team member differently at work, the investigation found, which “caused tremendous emotional stress on a daily basis, which created a hostile work environment.”
The investigation also found that Peppers “exchanged, transmitted, and/or retained numerous non-COJ business communications related to adult content of a sexual nature and at least one adult-content photo of himself that were inappropriate for the workplace and/or a COJ-issued cellphone.”
Peppers also misused his position by recommending two organizations for consideration of grant funding in the amount of $100,000 each from a non-profit organization, according to the city’s investigation.
The organizations are owned by people that Peppers had a personal or professional relationship with and did not appear to meet the grant criteria of performing services tied to adolescent drug treatment, investigators found.
The investigation found that Peppers had not been transparent about his conflicting relationships.
The OIG noted that no existing city policies address such disclosures, other than the disclosure of financial interests in the organizations, but Peppers' actions at a minimum, lead to an appearance of conflicts of interest, the investigation found.
Peppers resigned May 2 during the investigation and, through his lawyer, declined to be interviewed, according to the city.
Peppers issued a statement to News4Jax that reads:
I want to add my comments explaining the reasons for the extended period of leave that I took, and express my appreciation for the role played by the Board of the Kids’ Hope Alliance. I am a disabled veteran, with three tours of duty in Iraq, and I have battled against the effects of PTSD from my military experiences for many years. It became apparent in the late spring of 2019 that I needed intensive treatment and therapy for my condition, and I communicated my needs to the Board Chair, Kevin Gay. Mr. Gay was understanding and supportive, and he permitted me to take the leave necessary for needed treatment. I have made mistakes and apologize to my friends and family for putting them through some very difficult times. I was in a very dark place and made some poor decisions. Together we felt that we could move forward with the leadership of the organization after my return, in light of the treatment I received and the fact that the employee at issue was scheduled to leave based of her own accord. I am truly remorseful for the effect any of this had at Kids Hope Alliance. I’m incredibly grateful to Mr. Gay and the Board for affording me grace and understanding as well as allowing me to work through my trauma and continue on as CEO following the treatment I received for PTSD.
Joseph Peppers
A city spokeswoman sent a statement to News4Jax about the investigation:
The Administration is grateful for the Inspector General’s work outlined in today’s reports. We are disturbed by the findings regarding previous leadership at KHA and will continue the work that has already begun to restore the trust the departed CEO violated. As to claims he made against Mayor’s Office staff, we are grateful for the Inspector General’s very thorough review that deemed those accusations baseless and unfounded. KHA continues to be an important organization in the fight to protect every Jacksonville child’s access to hope and opportunity. Mayor Curry, his team, and the new leadership at KHA will continue to work towards that important mission.
Nikki Kimbleton, Director of Public Affairs/ City Spokeswoman