Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 19, 1992 TAG: 9202190337
SECTION: VIRGINIA PAGE: B3 EDITION: NEW RIVER VALLEY
SOURCE: PAUL DELLINGER NEW RIVER VALLEY BUREAU
DATELINE: PULASKI LENGTH: Medium
CAB COMPANY FUNDS DIVERTED
Accountants have found that $41,800 has been diverted from Pulaski's major cab company to its secret owner since last July.Pulaski Town Council got that information Tuesday night from Radford lawyer Richard Davis, who is working with the investigation of Blue & White Cabs.
Davis said the money was withdrawn from the cab company and paid to Herman Largen, who apparently used it to pay insurance for the bus depot he also owns.
"We don't have money to pay the drivers. We've got IOUs all over this county," he said.
Last week, Largen sought a recommendation from council's Ordinance Committee for 17 cab permits for the franchise he supposedly sold in 1986 to Verlin Chrisley. The sale followed Largen's conviction of a reduced petty larceny charge in a plea bargain involving more than $4,000 in over-payments for giving rides to Medicaid recipients.
But the committee decided to make no recommendation after hearing from Chrisley that the transaction was only on paper, and that Largen continued to operate the cab company while paying Chrisley simply as a driver.
The question had been whether to allow Chrisley to operate the franchise, following his conviction Jan. 28 of abducting his wife at gunpoint.
Chrisley will start serving a two-year sentence Feb. 28, but has several part-time jobs and will be allowed to go out on work-release. "Do you all know of anybody in the town of Pulaski who does operate a business and has served some jail time? I know of several," Chrisley told council.
Council approved a motion by C. Don Crispin to allow Blue & White to continue operating its cabs until council's earlier temporary approval, which was given before the outcome of Chrisley's case was decided. Now it will continue until full accountability is determined by certified public accountants.
Davis said the job could take 60 days, since it covers five years and there are a lot of missing checks and documents, but he said he would report back to council as quickly as possible.
"I will be glad to make it 15 days if I can get the CPAs to get all the books," he said. "But I would hate to see the council put a limitation on the CPAs."
Neither Chrisley or Largen will be managing the cabs in the meantime. That will be done by Marvin Eanes, who told council he had agreed to the job if the cab permits were extended.
Largen had said earlier that Chrisley was the sole owner, and he was trying to reclaim the cab company because Chrisley had not made the required payments for its purchase.
"I don't think the parties have been totally candid with council," Davis said.
Earlier Tuesday, Largen notified Town Manager Don Holycross that he was withdrawing his request for certificates of convenience and necessity to operate the cabs. "You write it down, underline it 20 times: Mr. Largen is out of the cab business," Davis said.
If council had revoked the temporary permits, there would have been only five cabs from a separate company left to cover Pulaski.