Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 22, 1992 TAG: 9201220384
SECTION: VIRGINIA PAGE: B-2 EDITION: METRO
SOURCE: DAVID REED ASSOCIATED PRESS
DATELINE: ROANOKE LENGTH: Medium
HONAKER TALKING PLEA DEAL
The lawyer for Sheriff Marshall Honaker said the sheriff is talking with authorities about a plea bargain. A federal grand jury is currently investigating fraud and embezzlement allegations against Honaker."I can confirm we're going to be talking about the mechanics of a plea agreement," James Bowie, a Bristol lawyer, told the Richmond Times-Dispatch.
The grand jury began hearing testimony Tuesday against Honaker, who allegedly took $377,700 in jail revenue and used some of money to buy a house, two vehicles and other property.
City Manager Paul Spangler said after testifying for 45 minutes that he still finds it hard to believe the magnitude of the allegations and how such a diversion could escape notice for four years.
City Treasurer Emma Muller, who also testified Tuesday, said, "I couldn't believe it. It sort of staggers the mind."
An Internal Revenue Service agent said in a U.S. District Court affidavit that Honaker diverted the money from payments to the jail for holding prisoners for the federal government and District of Columbia.
The Sheriff's Department controls the operation of the jail, one of the largest federally accredited prisoner-holding facilities in Southwest Virginia.
Honaker, who has not been charged with a crime, resigned last week as president of the National Sheriff's Association and is taking a leave of absence until the investigation is completed. The sheriff has said he will not comment.
In a raid Jan. 10, agents seized Honaker's $245,000 home and other property and found $63,281 in cash in his office desk.
IRS agent Jack Bumgardner said in the affidavit that he believes there is probable cause to charge Honaker with tax evasion, money laundering, federal program fraud and mail fraud.
Spangler added that Bristol officials were unsure whether the city or the state "should have caught that" and may need to fix its accounting procedures. Bristol Mayor James Rector made a similar comment last week, noting that nearly all of the Sheriff's Department's $2.4 million budget is state funded.
Walter Kucharski, state auditor of public accounts, said his department only occasionally audits the state's constitutional officers - sheriffs, treasurers, revenue commissioners, finance directors, court clerks and commonwealth's attorneys - and then only on request.
Kucharski said Friday that the city council was ultimately responsible for overseeing the Sheriff's Department and should have supervised the jail accounts, including the prisoner reimbursements.