The U.S. Attorney Office has obtained a guilty plea from a former City of Jackson “Constituent Services Manager” after she admitted taking over $50,000 in grant money intended for “artistic projects” in Jackson.
“Keyshia Sanders, 47, the City of Jackson’s former Constituent Service Manager, pleaded guilty to violating Title 18, United States Code, Section 1343, for engaging in a wire fraud scheme to fraudulently induce the disbursement of grant money for her own benefit,” according to court documents.
“Jackson, pleaded guilty to violating Title 18, United States Code, Section 1343, for engaging in a wire fraud scheme to fraudulently induce the disbursement of grant money for her own benefit.”
The announcement was made by U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of Federal Bureau of Investigation’s Jackson Field Office
Court documents said the scheme involved the use of fraudulent invoices that caused the grant’s fiscal agent to disburse funds to Sanders in clear contradiction to the terms of the grant and Sander’s role as a City of Jackson employee.
The grant was intended to provide project support in the City of Jackson to invest in artists, artist collectives, and small arts organizations of color.
The fraudulent transactions caused by Sanders over the course of the scheme totaled a loss of approximately $54,000.The scheme involved the use of fraudulent invoices that caused the grant’s fiscal agent to disburse funds to Sanders in clear contradiction to the terms of the grant and Sander’s role as a City of Jackson employee.
The grant funds were initially intended to provide project support in the City of Jackson to invest in artists, artist collectives and small arts organizations of color. In total, the fraudulent transactions caused by Sanders over the course of the scheme totaled a loss of approximately $54,000.
The Mississippi State Audit Department assisted in the case and State Auditor Shad White issued the following statement:
“We’re grateful for the chance to work with our federal partners on important cases like these,” said Auditor White. “Thank you to the prosecutors and investigators who collaborated to move this case forward.”
Sanders is scheduled to be sentenced on April 20, 2023, in Jackson, and faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Suspected fraud can be reported to the Auditor’s office online any time by clicking the red button at www.osa.ms.gov or via telephone during normal business hours at 1-(800)-321-1275.
Coahoma County Cases
The Auditor’s office is still seeking demands from cases it has investigated involving people in Clarksdale and Coahoma County that are several years old and involved over $1 million in alleged fraud of public funds.
A former Clarksdale Public Utilities employee was charged with embezzlement in June of 2022 following an investigation by the State Audit Department.
Auditor White said at that time special agents from his office arrested Shoral Bound, the former lead cashier for the Clarksdale Public Utilities.
White said Bounds was indicted for embezzlement by a Coahoma County grand jury. A $182,771.97 demand letter was presented to her upon arrest. The demand letter includes interest and investigative expenses.
Bounds is accused of embezzling customer utility payments and manipulating the computer systems to show that her daily collections were less than she collected.
If convicted, Bounds faces 20 years in prison and thousands of dollars in fines.
A $50,000 surety bond covers Bounds’ employment at the Clarksdale Public Utilities. Surety bonds are similar to insurance designed to protect taxpayers from corruption. Bounds will remain liable for the total amount of the demand in addition to criminal proceedings.
Bound’s case is on the January term of the Coahoma County Circuit Court docket.
In a similar investigation by the State Auditor two former Coahoma Community College employees were charged in one of the largest embezzlement schemes at that time after a year of investigation by the state auditor’s office led to a demand of over $900,000 in September 2018.
White said multiple cards were being used and, as Stacie NEAL and Gwendolyn Jefferson kept everything a secret, the amount of money they were spending increased. He added they were going on to the Amazon website and purchasing items such as watches, shoes and a chandelier. They also purchased gifts for their friends.
That case was also listed as pending in Coahoma County Circuit Court and a 2021 Exceptions Report by the State Audit Department said no repayment has been made at that time.
According to White, at a press conference in the Coahoma County Courthouse at the time the charges were announced, the investigation concluded Stacie NEAL of the CCC accounts payable business office and administrative assistant Gwendolyn Jefferson embezzled an estimated $758,000 from 2013-17.
The embezzled amount, plus the $194,000 interest and $28,000 cost for the investigation add up to the $981,600.64 Neal and Jefferson are being told to pay back.
Coahoma County District Attorney Brenda Mitchell said at that time, if there is a prosecution, it would be in Coahoma County, but the timetable is a question mark. The two women have been formally indicted, but no court date has been set.
Their case was on the January 2023 term of Coahoma County Circuit Court listed in the Clarksdale Press Register this week.
At the time the investigation was announced, White said the auditor’s office only deals with civil matters and district attorney Brenda Mitchell will make the decision on whether to file charges and prosecute.
An Audit Department investigation has gotten one local conviction involving a woman from Coahoma County.
On May 29, 2019, White issued a formal demand in the amount of $142,524.35 against former Coahoma County Tourism Commission Director Kappi Allen.
On June 24, 2020, Allen was sentenced to serve 15 years in MDOC with 14 years suspended and the remaining year to serve on MDOC Intensive Supervision Program. Allen was given 15 years to pay restitution in full.
Suspected fraud can be reported to the Auditor’s office online at any time by clicking the red button at www.osa.ms.gov or via telephone during normal business hours at 1-(800)-321-1275.
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