JACKSON- On Wednesday, August 12, investigators with the State Auditor’s Office arrested Joseph C. Gallagher and Ricky Saxton in the Mississippi Department of Transportation corruption ring that resulted in five arrests on Tuesday, August 11.
Gallagher and Saxton were indicted on two counts: fraudulently obtaining public funds and conspiracy to fraudulently obtain public funds. Both were arrested and booked into the Yazoo County jail.
“We believe Gallagher and Saxton were involved in the conspiracy to defraud the taxpayers of Mississippi along with the five individuals*arrested on Tuesday,” said State Auditor Stacey Pickering. “We will continue to work this case and it is likely that other arrests will be made in this case. The cooperation by MDOT officials was essential in this case. We appreciate their assistance and hope these arrests serve as a reminder to all public employees that this behavior will not be tolerated.”
Joseph C. Gallagher, 49 of Benton, was indicted on two counts: fraudulently obtaining public funds and conspiracy to fraudulently obtain public funds. He began employment with MDOT in July 2002. It is alleged that Gallagher embezzled funds from the MDOT by knowingly ordering parts for a private party and having the parts billed and paid for by MDOT. The State Auditor’s Office seeks $471.35 in recovery from Gallagher.
Ricky Saxton was indicted on one count: conspiracy to fraudulently obtain public funds. Saxton owns and operates Ricky Saxton’s Repair Shop located in Yazoo City.*It is alleged that Saxton knowingly fulfilled orders placed by MDOT maintenance employees for use on vehicles owned*by a private party.
James Kevin Ellis, 45 of Benton, was indicted on eleven counts: four counts of embezzlement; three counts of making false entries in public records; three counts of obtaining public funds fraudulently and two counts of conspiracy.*He has been employed with MDOT since April 1999. It is alleged that Ellis took and sold equipment owned by MDOT and negotiated and approving illegitimate invoices being billed and paid by MDOT for personal purchases. The State Auditor’s Office seeks $4,542.20 in recovery from Ellis.
Clarence Shelton, 56 of Benton, was indicted on sixteen counts: one count of embezzlement; six counts of fraudulently obtaining public funds; six counts of making false entries in public records; and three counts of conspiracy. He began employment with MDOT in October 1989. Shelton is charged with embezzling funds from MDOT by approving subordinate employees to work on personal projects while on duty and by acquiring parts for personal vehicles, knowingly having them billed to MDOT and approving payment for the invoices. Total funds sought in recovery against Shelton are $4,217.51.
Gene Edward Taylor, 35 of Yazoo City, was indicted on three counts: conspiracy, fraudulently obtaining public funds and making false entries in public records. He began employment with MDOT in January 2007. The investigation determined Taylor benefited from MDOT’s payment for a part to be used on his personal vehicle. Total funds sought in recovery is $1,069.20.
Ivory Luckett, 51 of Satartia, was indicted on two counts: embezzlement and conspiracy. Luckett began employment with MDOT in May 2000. Allegedly, Luckett worked on personal property while on duty as an employee of MDOT to perform maintenance on a truck owned by an individual and MDOT’s payment of a part placed on the personal vehicle. Total funds sought in recovery total $244.22.
James D. Malone, 53 of Yazoo City, was indicted on three counts: fraudulently obtaining public funds, making false entries in public record and conspiracy. He has been employed with MDOT since January 1995.*The investigation determined that Malone also benefited from a part that was ordered for his personal vehicle and installed by an MDOT employee while working on duty at the agency. Total sought in recovery against Malone is $161.19.*
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