Former ECUA manager pockets $500,000 selling recyclables; pleads guilty to racketeering

Benjamin Johnson, Pensacola News Journal
·2 min read
The Emerald Coast Utility Authority's Materials Recycling Facility processes around 40,000 tons of recyclable materials per year, and up to 12% is considered contaminated. Santa Rosa County is urging its citizens to be mindful of the contents placed in recycling bins if it wants the program to continue.

A former ECUA recycling manager pleaded guilty Wednesday to racketeering after setting up a shell company in 2018 to sell ECUA recycling materials to three different companies who buy bulk recyclables.

Jarrell Lamar Reynolds, 45, of Pensacola was charged with organized fraud, money laundering, extortion and two counts of racketeering. In return for his guilty plea on one count of racketeering, the Office of the State Attorney dropped the remaining four charges, according to court records.

"(Reynolds) in this case is charged with using his position with the Emerald Coast Utility Authority to embezzle over $500,000 from Sept. 2018 to Feb. 2019," his court records stated. "Specifically, he is charged with violating the terms of his employment by engaging in self-dealing by way of a shell company to embezzle and launder funds for his personal use."

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After his arrest on Nov. 4, 2019, he was released on bond Nov. 5.

Reynolds was a manager for the Materials Recovery Facility operated by ECUA and used his shell company, JAT Recycling, to resell recyclables owned by ECUA to ASM Recycling, Wise Recycling and Cellmark, maintaining control of all profits.

At least two of the companies that bought the recycling were led to believe that they were buying from ECUA and Reynolds' company was acting as a broker, but the money never made it back to ECUA coffers, according to his arrest report.

An ECSO investigation turned up Reynolds' bank records where the money was deposited.

Reynolds withdrew most of the money from his account as cash and checks, and $16,000 was used as a down payment on a 2016 Porsche Panamera in December 2018.

Reynolds abruptly resigned from his job with ECUA in January 2019 when questions were asked by an ECUA auditor. In emails between Reynolds and ECUA, he promised his company would repay the money to ECUA, but no payment ever came.

Court records indicate that Reynolds was facing a maximum of 135 years in prison for all five counts prior to his guilty plea, but was that was knocked down to the statutory maximum of 30 years for racketeering. However, the state prosecutor agreed to cap his maximum at 10 years if the judge grants the maximum sentence.

Reynolds is scheduled to be sentenced Feb. 17, 2023.

Benjamin Johnson can be reached at bjohnson@pnj.com or 850-435-8578

This article originally appeared on Pensacola News Journal: Pensacola man Jarrell Lamar Reynolds pleads guilty to racketeering