11/05/2007 2:49PM ET

DOVER, Del.- Delaware Secretary of Finance Richard S. Cordrey anounced Monday that state police are investigating an irregularity related to unclaimed properties.

Cordrey said the state auditor's office gave his department a tip that there was an accounting problem in the unclaimed property refund section. That section oversees unclaimed property in the state's possession that belongs to Delaware residents and helps individuals recover items they own.

Cordrey said he has ordered two separate audits- one of which is to be conducted by experts outside of state government. Cordrey also requested an investigation to determine if any unlawful conduct has occurred in this section and to immediately stop the processing of such claims until questions surrounding this issue are resolved. 

More specifically, Cordrey said he took the following steps: 

• Contacted state police to review the department's preliminary findings and requested they investigate any criminal activity that may have occurred.
• Assigned to the unclaimed property refund section a senior management staff person from outside the Division of Revenue who has experience in reviewing, evaluating and suggesting improvements to processes and procedures.
• Requested the services of a national accounting firm perform an on-site review of the current procedures and workflow and make recommendations for improvement.
• Contacted the State Auditor's Office to update them that this issue has been turned over to the state police and requested that their office share any other pertinent information about this situation with the State Police, which they have agreed to do.
  hich is to be conducted by experts outside of state government.

 "While we wanted to notify the public about this matter when we contacted the Delaware State Police, we did not want to do anything that could undermine or jeopardize an ongoing criminal investigation," Cordrey said in a statement. "It is critical that the citizens of Delaware have absolute confidence in the integrity of our revenue collection and processing systems.  The personnel in the Department of Finance will work very closely with law enforcement to conclude the investigation."