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

DATE: FRIDAY, April 1, 1994                   TAG: 9404010023
SECTION: VIRGINIA                    PAGE: B-4   EDITION: METRO 
SOURCE: DIANE STRUZZI STAFF WRITER
DATELINE:                                 LENGTH: Medium

BEDFORD BOARD SUES WELLS TO RECOVER PAYROLL INTEREST

The lawsuit, brought by the Board of Supervisors, asks the court to return the interest from the account to the county's general fund. Wells has contended that the funds should remain in his control, according to the suit.

For five months, Wells' payroll practices have been the subject of a special prosecutor's investigation that was spurred by a county audit. The Board of Supervisors is awaiting the findings from that investigation.

The county audit revealed that Wells commingled personal and public payroll funds in his checking account, apparently in violation of the law. Wells has admitted commingling the funds, but said he did so on the advice of a state auditor who has since died.

Each month, the sheriff deposited checks from Bedford County in amounts that ranged from $130,000 to $183,000 and wrote payroll checks to his employees. Wells also deposited his own payroll check into the account and paid household bills from it.

According to the lawsuit, the account began bearing interest in 1982, accruing $15,002.20. In 1986, the county computerized its payroll account and offered to handle the sheriff's payroll. Wells declined and continued to deposit payroll funds into the interest-bearing account.

In April 1993, Wells stopped depositing his personal paycheck in the account. In December 1993, he stopped using the account to process the payroll for his office, according to the lawsuit.

Wells would not comment about the lawsuit or the pending investigation. His attorney, John Alford of Lynchburg, did not return telephone calls to his office.

Alford is expected to receive the lawsuit by early next week. He has 21 days to file a response.