A grand jury in McDonald County has returned indictments against the entire police department in Lanagan, Missouri, for bogus traffic tickets.  That and other offenses came to light in a state audit.

Lanagan Chief of Police Larry D. Marsh was charged with five counts of felony forgery for writing citations with a “non-existent” Missouri statute and altering a racial profiling report.

Lanagan Police Officer Michael Gallhue was also charged with two counts of felony forgery for similar offenses. All are Class C felonies.

State Auditor Tom Schweich issued an audit of the McDonald County town in November 2011.

Among the key audit findings were missing funds.

Officials also found evidence that the city routinely violated the so-called “Macks Creek Law,” by failing to relinquish excess revenues received from speeding tickets to the state for distribution to local schools.

Schweich’s auditors discovered the police department filed incorrect Missouri Vehicle Stops Annual Reports with the Missouri attorney general, which helped hide the excess revenues.