Jonesboro, AR – (JonesboroRightNow.com) – Multiple media outlets (KAIT, NEA Report) are reporting that Jonesboro Parks Director Danny Kapales has resigned from his position with the city.

Jonesboro Director of Communications Donna Malone reportedly said Kapales’ resignation became effective at 5pm Friday, January 2.

Interim Director Jim Stearns will remain in his position as the city follows its standard hiring procedures, Malone said.

Kapales was previously placed on administrative leave amidst a U.S. Department of Justice investigation that was first made public on December 2 when FBI agents conducted raids and searches at multiple locations, including Kapales’ home and office.

JonesboroRightNow reported additional details following a Jonesboro City Council Finance and Administration council committee meeting a few days later.

There has been no new information about the investigation released by the Justice Department since the December 2 raids and searches. There have, however, been rumors that numerous interviews have been conducted by investigators but nothing JRN could confirm “on the record.” There have also been rumors that an “indictment might be coming after the holidays” but those rumors also could not be confirmed.

Based on comments made by Mayor Harold Copenhaver at the December 5 committee meeting most observers believe the Justice Department investigation centers around the finances of the City Stars operated activities such as soccer, football and basketball. That opinion is fueled by accusations made by leadership of a City Stars’ associated soccer program identified as Arkansas Revolution. JRN first reported the allegations involving the Revolution program May 30, 2025.

In the days following the Justice Department raids in early December, a letter addressed to Jonesboro Leaders and Stakeholders from Daniel Gary, a former member of the Revolution board surfaced. The letter suggested that the circumstances involving the investigation and the act of Jonesboro city government taking control of the City Stars program presented an opportunity for a much better and bigger parks and sports activities program for Jonesboro.

JRN also obtained a copy of an e-mail sent to Mayor Copenhaver and members of the Jonesboro City Council on December 10. The e-mail was sent by Matt Modelevsky, chairman of the Public Facilities Board, and Jerry Morgan, chairman of the Jonesboro Advertising and Promotions Commission. Among other points, the e-mail recognized the issues regarding the Justice Department investigation and the “upheaval” it had caused in the city’s youth sports programs. The e-mail suggested that the city form an “outside citizen group” to review sports programming and sports tourism in the city. The authors had not received a response to their e-mail as of just before Christmas.

The City Stars Winter Basketball program will apparently go on as planned. Social media posts encouraging registration for the Winter Basketball program have appeared on the Jonesboro Parks and Recreation Facebook page. Registration closes today (January 4). Games are set to begin February 21 according to the post.