Two former Town of Mason employees indicted over $150,000 in fraud, ex-mayor investigated
Two former Town of Mason finance officers have been indicted following a lengthy investigation, the Tennessee Comptroller’s Office announced Wednesday.
The state investigation resulted in the indictments of former town finance officer Reva Marshall and the town’s human resources manager Michele Scott.
The investigation launched in 2022 shows nearly seven years of malfeasance within the Tipton County town, according to the comptroller's report, which evaluated financial transactions from 2015 to September 2022.
The Tennessee Comptroller took over supervision of the finances of the Town of Mason last spring during the investigation, a decision that caused some controversy and propelled the local NAACP to launch a lawsuit against the state after a new Black mayor was elected.
The town’s former mayor, Gwendolyn Kilpatrick, who served from 2015 to 2018, was also investigated. She lost her re-election campaign in November 2018.
The former mayor misappropriated at least $8,774.43 from the town for her personal gain, the comptroller reports states, including improper reimbursements and expenses related to various trips, meals, and other personal expenses.
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For example, in January 2018 she traveled to Monrovia, Liberia on a 10-day trip; the town paid for her airfare, hotel stay, visa and passport applications, and immunizations. A former town employee stated the trip was a personal vacation, the report states.
Over $150,000 misappropriated between two former employees
Former finance officer Marshall received at least $80,421.89 in improper wages, benefits, and reimbursements from the town. Investigators found that Marshall submitted timesheets reflecting approximately 2,908 hours of actual time worked; however, she received compensation for 7,000 hours of work. Marshall approved her own timesheets and processed payroll for all town employees until she left her employment with the town in July 2022.
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Human resources manager Scott improperly received $40,622.68 in wages and benefits from the town, according to the report. Scott’s timesheets showed she worked approximately 5,392 hours; however, she received compensation for 7,920 hours.
Both Marshall and Scott also worked full-time for the Memphis-Shelby County Schools system, while they worked for the Town of Mason. Investigators determined both women "double-dipped" by receiving compensation from both MSCS and the Town of Mason for the same hours of work, the comptroller's report says.
Marshall claimed to be working for both entities simultaneously for approximately 812 hours resulting in $22,642.14 in improper wages and benefits from MSCS. Scott claimed to work for both entities simultaneously for 264 hours resulting in $10,242.36 in improper wages and benefits from MSCS.
Comptroller investigators have also questioned an additional $11,818.67 of questionable credit card transactions and reimbursements facilitated by the former mayor, and another $45,691.81 of questionable and unsupported credit cards transactions and reimbursements by town employees.
Indictments issued
Based upon the investigation, in March, the Tipton County Grand Jury indicted Marshall on one count of theft over $10,000, one count of theft under $1,000, and one count of official misconduct. Scott was indicted on one count of theft over $10,000, one count of theft over $2,500, and one count of official misconduct.
The Shelby County Grand Jury also handed down indictments against both women in March. Marshall has been indicted on one count of theft over $10,000, and one count of official misconduct, while Scott was indicted on one count of theft over $10,000, and one count of official misconduct.“The investigative report includes a list of eight significant deficiencies in the town’s government operations that not only led to misappropriation, but have also contributed to the town’s long history of audit findings and financial trouble,” Comptroller Jason Mumpower said.
“In particular, town officials have failed to properly oversee payroll, credit card transactions, cell phones, vehicle maintenance, travel, and inventory. The town has also allowed various hired consultants to have too much control over the town’s operations and finances.”
This article originally appeared on Jackson Sun: Tennessee investigates former Mason mayor; ex-employees indicted
