GRAND JURY TESTIMONY RESUMES IN HONAKER CASE

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 19, 1992                   TAG: 9202190236
SECTION: VIRGINIA                    PAGE: B3   EDITION: STATE 
SOURCE: VICTORIA RATCLIFF STAFF WRITER
DATELINE:                                 LENGTH: Medium
GRAND JURY TESTIMONY RESUMES IN HONAKER CASE
A federal grand jury in Roanoke continued hearing testimony Tuesday in the case of former Bristol Sheriff Marshall Honaker, who killed himself last month amid allegations that he stole almost $500,000 in jail revenue.
Bristol Police Chief Oscar Broome, one of several witnesses to testify Tuesday, said he thinks the grand jury is "trying to wind this up."
Broome, whose department investigated Honaker's suicide, said he reviewed the case file and evidence from the death scene with the grand jury.
The grand jury didn't seem to question the investigation as much as it seemed to be interested in getting Honaker's death on the record as part of its investigation, Broome said.
Federal authorities indicated interest last week in unsubstantiated reports that Honaker left a tape-recorded message that was not confiscated as evidence from his office, where he shot himself in the chest with a 12-gauge shotgun.
Broome said Tuesday that no such tape existed, and that the grand jury did not ask him about it.
The chief did say, however, that he had heard rumors about the tape. "If there had been any tape, it would have been in evidence and would have been transcribed by now," he said.
Bristol Police Capt. William Crawford, who supervised the investigation of Honaker's death, said he also had heard rumors about the tape. But, he said, he was at the scene within minutes of Honaker's death and he does not believe any such tape existed.
Crawford said the grand jury did not question him about the existence of a tape, either.
In addition to Broome and Crawford, the grand jury heard testimony from interim Bristol Sheriff Eddie Barnes and Chief Deputy Charlie Arnold. Both Barnes and Arnold said Tuesday that they hadn't known that Honaker had kept two sets of financial books and was taking money from the city.
Bristol Comptroller Danny Johnson also testified Tuesday. Johnson said the grand jury questioned him about the operation of the city and had "general accounting-type questions."
Although the grand jury was not disbanded Tuesday, Assistant U.S. Attorney Julie Campbell said she could not comment on the status of the investigation.
Federal investigators said they still were reviewing evidence collected in a raid of Honaker's office and home last month.
Honaker was accused in a U.S. District Court affadavit of taking $377,700 in money he was paid to house federal prisoners and using some of the money to buy a house, two vehicles and other property. Honaker, former president of the Virginia and National Sheriffs' associations, had not been charged with a crime at the time of his death. But his attorney was to meet with federal prosecutors the day Honaker died to discuss a plea bargain.
In a raid Jan. 10, agents seized Honaker's $245,000 home and other property and found $63,281 in cash in the middle drawer of his office desk.
IRS agent Jack Bumgardner said in the affidavit that he believes there was probable cause to charge Honaker with tax evasion, money laundering, federal program fraud and mail fraud.
Memo: shorter version ran in the Metro edition.

by Bhavesh Jinadra by CNB