Former Panama City employee accused of embezzling $470,000 now faces additional charges
PANAMA CITY — A former city employee accused of embezzling $470,000 now faces new charges in addition to one count of grand theft over $100,000.
In a press release Tuesday evening, the Panama City Police Department announced Michael Johnson, the former community development director for Panama City, was charged Monday with money laundering involving more than $100,000 from the city's After School Assistance Program, along with 19 counts of official misconduct related to the misuse of funding from the city's Community Redevelopment Agency.
"Johnson is still in the Bay County Jail," the release reads. "The investigation is ongoing, and additional charges are expected in this case."
Details of the upcoming audit: Panama City working on details of forensic audit in wake of embezzlement charges
Michael Johnson arrested: Former Panama City administrator arrested on charge of embezzling $470,000 from charity
Johnson was arrested Oct. 20 on allegations he embezzled $470,000 from the Friends of the After School Assistance Program, a nonprofit organization that supports the After School Assistant Program.
Authorities say an account for the After School Assistance Program was discovered at Hancock Whitney Bay that only had Johnson on its signature card. As director of the program since 2012, he had sole access to the program's checkbook.
Statements from Hancock Bank show Johnson wrote himself checks, the first of which was written Feb. 1, 2012, for $9,839. The largest check was written Nov. 13, 2020, for more than $37,215, police said.
Johnson resigned from his position as community development director about two weeks before his arrest, when City Manager Mark McQueen confronted him about unrelated, sloppy management practices.
These included a failure to follow policies and procedures and provide documentation, along with noncompliance with 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.
Panama City conducting forensic audit after Johnson arrest
In addition to the ongoing police investigation, which PCPD is conducting with the help of the FBI, Johnson's arrest also sparked an upcoming forensic audit for Panama City. Officials still are working out its details, but the audit's purpose will be to make sure the city's fiscal and operational systems cannot be manipulated by employees.
In a Tuesday evening statement emailed to the News Herald by Caitlin Lawrence, spokesperson for Panama City, City Manager Mark McQueen said he not only is disappointed to learn of the new charges, but angered.
"These new charges against Johnson reveal a shocking pattern of abuse of the public trust that is counter to professionalism and integrity," McQueen said. "Johnson's allegedly egregious actions appear to (have been) done unilaterally.
"As brazen as this alleged criminal activity appears, we understand that the investigation is ongoing, and we will continue our cooperation with law enforcement until it uncovers any and all criminal activity associated with this case."
This article originally appeared on The News Herald: Michael Johnson: New charges filed against in Panama City theft case
