Knox County ethics chief asks state's 'money cop' to investigate county commissioner
Knox County’s ethics committee chief is trying to enlist the investigative powers of the state to get to the bottom of a complaint against County Commissioner Kyle Ward over a land deal he struck with a prominent developer.
Michael Covington, chair of the ethics committee, told Knox News on Sept. 26 he filed a complaint Sept. 25 with the Tennessee Comptroller of the Treasury’s office, which investigates allegations of fraud, waste and abuse by government officials. Or more simply, it’s the state’s “money cop,” in the words of Comptroller Jason Mumpower.
Ward is accused in a complaint filed by Michael Casstevens in July with the county’s ethics committee of paying just $10 each to developer Scott Davis for two plots of land assessed at $50,000 apiece.
Ward and Davis say Ward intends to build a home on the land in the Harrison Springs subdivision near Hardin Valley, which he would then sell. Ward would pay back the value of the land from the sale and keep the rest.
Casstevens added to his complaint Sept. 8, saying Ward and Davis colluded with Garrett Holt, a member of the county’s Board of Zoning Appeals. Ward sought an exemption to build the home, but two residents and a member of the subdivision’s homeowners association spoke against it.
Holt moved to grant Ward’s request, which Ward later withdrew. According to Davis, Ward can still build a home on that land, it would just be more difficult for him to do so without the variance.
Holt was nominated to the zoning appeals board by Ward. Holt also is running for election to the county commission to replace Ward, who is not seeking reelection to his 4th District seat.
Additionally, both Ward and Davis have donated money to Holt’s campaign.
The county's ethics code says that an official has to disclose any "personal interest" in voting and nonvoting matters that influences their vote.
The complaint alleges that neither Ward nor Holt properly disclosed their interests.
Ward and Davis' contributions to Holt's campaign and Holt's failure to recuse himself from the appeals board vote are "obvious problems," Covington told Knox News on Sept. 12.
Some members of the ethics committee, including real estate agent Kathryne Ogrod, said the deal is a normal business transaction between a builder and developer.
On Sept. 12, Ward filed a memorandum of contract with the Register of Deeds Office that says he owes Davis $40,000 for each of two lots.
After the memorandum was filed, Knox County Law Director David Buuck sent a memo to the ethics committee saying he saw no ethics violation.
One reason, Buuck's memo says, is that Ward agreed to ultimately pay Davis $40,000 for each of the two lots.
"Clearly, the facts show this was a business deal and not a gift," Buuck said.
Buuck did not address the fact that Davis and Ward did not put a value on the purchase of the lots until after the ethics complaint was filed.
Davis brushed off allegations the land was a gift to Ward.
“(The allegations are) 100% incorrect," he told Knox News earlier this month. "I do not give lots to anybody, I get paid to develop lots."
Covington, chief of the ethics committee, is skeptical. He told Knox News on Sept. 26 he’s trying to enlist the help of the state comptroller because that office has investigative powers the county’s ethic committee does not.
“I have an obligation to the citizens of Knox County to make sure no stone is unturned if a questionable situation arises,” Covington said.
The comptroller’s office does not disclose whether it’s investigating a case. The only way to know if state investigators have taken action is if they refer a complaint for prosecution.
Casstevens, who filed the complaint with the county ethics commission, previously told Knox News he wasn’t sure if he would bring more information to the committee before its November meeting.
Allie Feinberg reports on politics for Knox News. Email: allie.feinberg@knoxnews.com.
This article originally appeared on Knoxville News Sentinel: Knox County ethics chief asks state to investigate Kyle Ward
