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By Connie Sage, Correspondent
EDENTON, N.C.
The U.S. Attorney's Office for the Eastern District of North Carolina is reviewing state auditor findings into Chowan County's fiscal crisis.
The case is being handled by a senior assistant U.S. attorney in the office's criminal division in Raleigh, District Attorney Frank Parrish said Friday.
That office "could determine that nothing could be done or could request a federal criminal investigation," Parrish said.
Parrish earlier had sent the report to the state attorney general's office in Raleigh.
The Office of the State Auditor recently completed a year long preliminary investigation into what happened to the county's $29 million in cash reserves.
Nearly a year ago, Parrish called for the investigation after revelations that the reserves had been nearly drained, the county's budget revenues had been overstated by millions, and that the county was unable to pay its bills and faced possible state takeover.
State auditors found no major criminal wrongdoing in its findings released by local officials on July 17.
Timothy J. Hoegemeyer, general counsel for the state auditor's office, said in the report, however, that his office "did not have the authority to perform a full investigation."
The Chowan County Board of Commissioners also is looking into pursuing legal action.
"The county is broke," Chairman Eddy Goodwin said Thursday.
In its 11-page report, auditors questioned apparently unauthorized payments by former County Manager Cliff Copeland to the Edenton Chowan Economic Development Commission.
County c ommissioners on Thursday immediately halted the county's annual $46,000 funding to the commission, the equivalent of an industrial development authority.
The commission "is going to stay in business," Roland Vaughan, its chairman, said Friday. Vaughan, who also is the mayor of Edenton, said the town is expected to fulfill its $36,000 annual contribution to the authority.
The commission likely will look to the private sector for donations, he said.
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Minutes
June 2007 a $50,000 phone system was purchases for DSS. I may be naive, but that seems excessive. Jan 2007 3.2 million is moved into the general fund to cover contractor payments, legal expenses, other services, dept supplies, advertising & interest. Grants for a Baptist Children's Home.....what became of this? Feb 2007 1 million for Red Banks Farm taken from the general fund; June 2006 300,000 to match Red Banks Grant, Oct 2006 $161,000 design work for Red Banks, June 2007 references $500,000 for Red Banks. How much money was spend on Red Banks? And one more thing, minutes from November 2007 - arranging free checking accounts for inmates? Obviously they were planning ahead!
well...
as for the phone system, that is not that out of line. My company installed a new one in 2005 for 52 employees at a cost of $124,000. So that may not be that out of line or even a good deal.
is red banks the project over behind pembroke creek? has that even been continued? the 3.2 million is disturbing cause that appears to be for operations. that was the big part of teh problem. the budget wasn't reflective of real revenue so copeland had to take it out to cover operations.
it is safe to say to that he did not plan for the future. what about a capital plan? what about a reserve for buildings? it appears buildings were just built on the fly and 100% financed. not smart.
but he did nothing wrong, right? he was just the manager managing. and look what he managed us to. please attorney general, press charges, make him face questions about this mess (under oath)
Where..
Where and what source did this information come from?
Chowan County Minutes
The meeting minutes are posted on the website 2004 - present
Justice Is..
..waiting for all those involved! Once again, I ask and state-how can 29 million dollars disappear with NO bank records in a county of this size? How can "large cash withdrawls" go unnoticed/unregistered with local banks? How can the state auditor "not" have the authority to conduct and perform a full investigation with such a massive disappearance of county funds? From the time the money was deposited into a bank, a single person or persons had authority to withdraw money! Where are the currency transaction reports as required by Federal law? Mr. Copeland and "Anyone" connected with this travesty (Capstrat, Mayor, former commissioners) should fall prey to a federal investigation and each person and the banks they frequent should be investigated as well as any family members to include spouse, children, grand parents etc. 29 million dollars may have disappeared from one account, but my guess, over a period of 10 years, it never left Chowan county! I hope each individual concerned is terrified right now!
from all reports
from all reports and accounts I have heard, the former county manager is walking around town claiming his innocence. course, i don't know if he has claimed that to those who lost their jobs or had their salaries cut at no fault of their own or those forced to retire due to job elimination. and i doubt he has given any "I'm Sorry's" to the taxpayers for creating a situation in which the county was drained of its resources all in the hope of huge developments (that never came) and big buildings (that we don't need). Isn't planning a key component of a county manager's job??? that alone is one offense (among about 15 others).
I am just sickened at his conduct and attitude and lack of any statements of responsibility and apologies.
And Jax, i would agree, how did this go so un-noticed......why didn't the auditor, the independent voice , speak out more? trust but verify would have been wise
hopeful
I am hopeful they will bring charges down on Mr. Copeland and require him to face what he has done instead of walking around town telling everyone how he has done no wrong since the report came out. It is time he face somebody and have to look head on at the damage he has done. He should have to face taxpayers, employees, and a judge for his action. Even if in a civil matter! Please, someone take him to court and make him have to look people in the eye and face the mess he has created. Too many people have been hurt by him