Hands in the Till: Embezzlement of Public Monies in Mississippi

Chapter 6. Other

6. Other While the five cases of embezzlement briefed in this chapter are not easily categorized, Section 7-7-2ii(F) of the Mississippi Code gives the OSA audit authority over each entity involved. The code section reads as follows: [The OSA has the authority] [t]o post-audit and, when deemed necessary, preaudit and investigate the financial affairs of the levee boards; agencies created by the Legislatureor by executive order of the Governor;profit or nonprofit business entities administering programs financed byfunds flowing through the State Treasury or through any of the agencies of the state, or its subdivisions;and all otherpublic bodiessupported byfunds derived inpart orwholly from public funds, except municipalities which annually submit an audit prepared by a qualified certified public accountant using methods and procedures prescribed by the department... (emphasis added). All of the entities involved received public monies and werebound bylaw to account for the monies properly,protect the monies, and disburse the monies only for lawful purposes. Keith Blaylock, Director, Economic Development Partnership of Monroe County The Monroe County district attorney's office registered a complaint with the OSA on July 24,1998. The complaint alleged that Keith Blaylock, who had been executivedirector of the Economic Development Partnership (EDP)of Monroe County since February 1995,had embezzled approximately $40,000 of AmoryRailroad Festivalfunds. Blaylock alsoheld the position of secretary/ treasurer of the Amory Railroad Festival. The OSAimmediately opened an investigation and assigned SpecialAgent Burt Haney to the case. Scott Wiygul, an officer in the National Bank of Commerce (NBC) in C6I> Amory, reviewed a personal loan of Keith Blaylockin mid-July 1998.Wiygul made a computer search that pulled up all accounts that had Blaylock's name associated with them. One of these accounts belonged to the AmoryRailroad Festival Committee. Wiygul, a former chairman of the festival and a board member of the Economic Development Partnership, discovered that the account had an unexpectedly lowbalance. The festival committee maintained this bank account at NBC and a savings account at Amory FederalSavings and Loan. The committee had not received any financial statements from its secretary/treasurer, Keith Blaylock, for quite a while despite the fact that Wiygul had requested financial statements several times. On July 22,1998, Wiygul phoned Ed Stanford, another festival committee member, and Raymond Cox, chairman of the EDP,and suggested that they get a copy of the festival's account at Amory Federal to determine how much money was on deposit there. Based on information provided by Blaylock , Wiygul thought there should be more than $50,000 in the savings account . Ed Stanford and Keith Blaylock had signature authority for the festival committee's two accounts. Ameeting was arranged at the NBC inAmory. Wiygul,Stanford,and Coxattended the meeting. EdStanford brought a statement from Amory Federal showing a balance of only $1,796. KeithBlaylock walked into the meeting, and it soon broke up without further discussion of the matter. Blaylock went with Wiygul to his office, where he told Wiygul that he had betrayed his trust and taken money from the festival's account. Blaylockwent on to explain that he wasunder pressure from the bank, the state, and suppliers of his Hancock Fabricsstore. Heclaimed that he planned to paythe money back at the rate of $5,000 per month and anyremaining balance in December 1998. Blaylock said he planned to ask his father to help pay off a "loan" that was due in December, and he pleaded with Wiygul not to tell anyone. Cox's office was at the Mississippi Valley Gas Company, and Blaylock showed up there shortly after his meeting with Wiygul. Blaylock told Cox that he had betrayed his trust by stealing approximately $42,000 from the railroad festival account. When asked what he was thinking when he took the money, Blaylock told Cox the same story he had told Wiygul and asked that Cox, Wiygul, and Stanford not tell anyone and allow him to pay the money back. On July 23,1998,Wiygul phoned Assistant District Attorney Rob Coleman about the missing funds. The city of Amoryhad an interest in the matter because the city donated approximately $6,000 ayearto the festival. The district Monroe County 193 attorney's office assigned the caseto BrineChamblee,who arrangeda meeting that same day with Wiygul and Cox. Chamblee received written statements from both Wiyguland Cox explaining what had happened. Chamblee's ensuing investigation revealed how Blaylock had embezzled money...