LITTLE ROCK — Official pleads guilty to fraud
Debra Shannon, chief financial officer at the Black River Area Development Corp. in Pocahontas for 37 years, pleaded guilty Wednesday in Little Rock to a federal mail-fraud charge.
Shannon, 56, waived review of her case by a federal grand jury and pleaded guilty before U.S. District Judge Leon Holmes, according to a news release from Chris Thyer, U.S. attorney for the Eastern District of Arkansas.
The development corporation administers programs to assist low- to moderate-income residents of Clay, Lawrence and Randolph counties. Thyer said Shannon’s job duties included writing checks from various payroll accounts to employees and vendors, and reconciling those accounts.
In court, Shannon admitted embezzling $390,735.64 by writing checks to herself from various checking accounts, with the majority of the checks being written from the payroll account, Thyer said.
He said she would then obtain the bank statements after they were received through the mail, disguise the payee on the canceled check, photocopy the disguised checks and put the altered checks in the corporation’s records.
The fraud began on or before Dec. 28, 2001, and continued until May of this year, Thyer said.
“The stolen funds should have been utilized to assist the poor citizens and communities in the Black River area of our state, not to fraudulently increase an employee’s salary,” Thyer said.
Shannon faces up to 20 years in prison and a fine of up to $250,000 under federal statutes. She remains free on her own recognizance pending sentencing, which has not yet been scheduled.
The FBI conducted the investigation, and the case is being prosecuted by Assistant U.S. Attorney Karen Whatley.
- ARKANSAS DEMOCRAT-GAZETTE
2 jailers charged in ‘pot’ smuggling
NEVADA, Mo. - Two fired southwest Missouri jail employees are charged with smuggling marijuana to an inmate.
The charges against Colby Prough, 39, of El Dorado Springs, and James Tumm, 23, of Nevada stem from a purported Sept. 8 marijuana delivery to the Vernon County Jail. They were fired last Friday.
Sheriff Ron Peckman declined to say Wednesday how much marijuana was involved or how it was smuggled into the jail in Nevada.
The Joplin Globe reported that inmate Bob Beisly III, 28, and his girlfriend, Joanna Roberts, 28, also are charged in the case. Beisly has been jailed since last month on a probation violation.
- THE ASSOCIATED PRESS
Judge orders trial in girl’s starving
JOPLIN, Mo. - A judge has ordered two women to stand trial on charges of starving a 3-year-old girl who weighed just 12 pounds when she was hospitalized.
The Joplin Globe reported that a Jasper County judge ruled Wednesday after a preliminary hearing for the girl’s mother, Beth A. Williams. Her domestic partner, Christina M. Haidle, waived her right to a hearing.
The judge also orderedthe women’s bails lowered to $100,000 surety and $25,000 cash. The women, both 27, face three counts of first-degree assault and two counts of felony child endangerment.
During the preliminary hearing, a doctor testified that since the girl was taken from her mother two months ago, she has doubled in weight.
Williams said the case has been “blown way overboard” and her daughter has “always been small.”
- THE ASSOCIATED PRESS
Man charged with animal cruelty
HOT SPRINGS - A Garland County man accused of multiple animal cruelty counts after a fire killed more than 30 cats, has surrendered to authorities.
Authorities said David Smith turned himself in Wednesday and was released on $1,000 bond.
Smith faces 39 misdemeanor counts of animal cruelty and a violation of the state’s rabies law.
Garland County officials said Monday that 28 cats died in a fire at Smith’s home and another 11 were injured.
Little Rock television station KTHV reported that four of the injured cats subsequently died of smoke inhalation.
Smith is an employee of the Garland County sheriff’s office and works in the jail.
Smith had a Monday deadline to clean up his home but instead, firefighters wound up there to put out the blaze.
- THE ASSOCIATED PRESS
Police: Report of rape was delayed
TULSA - A 17,000-member megachurch in south Tulsa has been rattled by allegations that five employees waited two weeks to report the rape of a 13-year-old girl in a campus stairwell, purportedly by a church worker.
Police said the girl is among at least three victims of purported sex crimes by two former church employees who face criminal charges. Investigators said more could surface.
Authorities have also charged five ministry employees for waiting two weeks before reporting to police the purported rape of the 13-year-old.
Police said this week that the worldwide ministry’s pastor and co-founder, Sharon Daugherty, knew about the allegations during the two-week reporting lapse, but trusted ministry employees to follow in-house policies on reporting such incidents.
- THE ASSOCIATED PRESS
Upham again chief of Tulsa university
TULSA - The University of Tulsa said former President Steadman Upham will return temporarily as president following the firing of Geoffrey Orsak.
The university said in a news release Thursday that the Board of Trustees has named Upham as president and that he’s agreed to return for up to two years while the board searches for a permanent president.
Upham served as UT president for eight years before retiring June 30 and accepting a teaching position at the university.
Orsak was hired to take over effective July 1 but was fired last week by the board - which has given no explanation as to why.
Northwest Arkansas, Pages 10 on 09/21/2012