Former Panama City administrator arrested on charge of embezzling $470,000 from charity

PANAMA CITY — A former Panama City administrator was arrested Thursday on charges of embezzling hundreds of thousands of dollars from a local charity.

According to a report from the Panama City Police Department, Michael Johnson, the former community development director for Panama City, is accused of embezzling more than $470,000 from the Friends of After School Assistance Program, a nonprofit organization that supports the city's After School Assistance Program.

Johnson, who has directed the program since 2012, now faces one count of grand theft over $100,000, which is a second-degree felony.

"An account with (the program) was discovered at Hancock (Whitney) Bank that only had Michael Johnson on the signature card, and Johnson had sole access to the checkbook," the report reads. "Hancock statements were obtained for two Hancock accounts, and upon review, it was discovered that there were checks Johnson wrote to himself over time in various amounts."

Other things Panama City: First-time homebuyers stand to get extra help under changes to program

More from local law enforcement: Panama City police arrest man accused of being 'willing participant' in Vibez brawl

The police department said the first check Johnson wrote to himself was on Feb. 1, 2012, for $9,839. The largest check he wrote himself was on Nov. 13, 2020, for more than $37,215.

"These checks were written to (Johnson) and signed by (himself) using marked Friends of After School Assistance Program checks from the Hancock Bank account," the report reads. "There was no explanation on the memo line of the checks or any justifiable reasoning discovered after reviewing the bylaws of the corporation and interviewing the board members."

Johnson resigned over 'unrelated unacceptable management practices,' city says

In an email, Caitlin Lawrence, spokesperson for Panama City, wrote that Johnson worked for Panama City from May 4, 2004, until Oct. 3, 2022.

He resigned from his position on Oct. 3 "immediately after City Manager Mark McQueen confronted him regarding unrelated unacceptable management practices," Lawrence wrote.

This included a lack of policies, procedures and documentation, along with noncompliance of federal regulations, related to his local role with the U.S. Department of Housing and Urban Development's Community Development Block Grant Program, which provides governments with federal funding to develop housing for urban communities.

Lawrence noted city staff members discovered the Hancock Bank statements on Oct. 12, 2022.

"Staff immediately notified the Panama City Police Department and the bank, which led to Johnson's arrest," Lawrence wrote. "PCPD is working with the FBI to investigate all programs and funds that (Johnson) had access to and/or authority over."

This article originally appeared on The News Herald: Former Florida administrator Michael Johnson accused of embezzling money