State Auditor Returns $18,000 to Greene County Following Investigation Into Misuse of Funds

August 29, 2011

JACKSON- State Auditor Stacey Pickering has returned $18,937.50 to Greene County following an investigation into Supervisors’ misuse of funds to pay for legal expenses during an investigation by state and federal authorities.

This recovery represents money expended by Supervisors Harold Cook, William Morris Hill and J.M. “Buddy” Crocker, who, along with Holder, voted to approve the payment of $25,000 for the criminal defense of Earnest Holder. Statutory authority does not exist for funds to be expended for a public official for the purpose of a defense attorney, when the action of the defendant is outside the scope of his duties and the action is prohibited by state or Federal law.

In May 2011, State Auditor Stacey Pickering issued a demand against Greene County Supervisor Earnest Holder for $130,673.03 after being found guilty of Bribery and Conspiracy to Commit Bribery in April 2011 in the United States District Court, Southern District of Mississippi. Holder was a part of an illegal kickback scheme carried out through a contract for Katrina debris removal. Agents retrieved $17,200 from Holder’s home, and the money was taken by the FBI and logged into evidence. The investigation showed this money was received by Earnest Holder from a contractor that received a debris removal contract from Greene County Board of Supervisors. Earnest Holder was removed from his position as Greene County Supervisor on May 20.

“The bonding company sided with our interpretation of the law which did not allow for funds to be expended for a public official for the purpose of a defense attorney,” said State Auditor Stacey Pickering. “This expense should not have been on the backs of the taxpayers of Greene County, and I am pleased to return this money to the County.”

The State Auditor’s Office began investigating Earnest Holder in 2006 with the assistance of Department of Homeland Security, the Federal Bureau of Investigation and the Internal Revenue Service. The United States Attorney prosecuted the case.

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