ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, June 5, 1996 TAG: 9606050049
SECTION: VIRGINIA PAGE: C-3 EDITION: METRO
DATELINE: HILLSVILLE
SOURCE: PAUL DELLINGER STAFF WRITER
Authorities arrested a former Carroll County administrator Tuesday on 18 charges of embezzling public funds totaling $454,790, mostly from the county Industrial Development Authority.
A grand jury returned indictments Tuesday morning against William Earl "Billy" Mitchell Jr., and he was being held later that day in lieu of $100,000 bond. In addition to meeting the bond, he will be required to surrender his passport and his concealed-weapons permit to be released.
Mitchell had been county administrator for about five years when he was suspended after a special closed Board of Supervisors meeting called March 2, then fired after a second special meeting March8.
County officials had been silent on the matter until Tuesday. Board Chairman J. Carl Delp said the suspension followed some financial irregularities found during a routine audit, and the dismissal followed the discovery of more irregularities.
Floyd County Commonwealth's Attorney Gino Williams was appointed special prosecutor in an investigation made by the Virginia State Police.
Williams said Tuesday that there was no evidence so far incriminating anyone but Mitchell. He said the investigation is likely to continue right up to the day of the trial, which has not been set.
"There are thousands, thousands of things we have to look at, literally," he said.
Williams said most of the discrepancies date from 1995 and involve money from the Industrial Development Authority, for which Mitchell served as treasurer. Some discrepancies dating back to 1992 involving county credit cards also were found, but Williams said those were relatively small.
"Hopefully, we'll find everything that's been lost by the county and the IDA," Williams said.
"We're still conducting an investigation about where the money went. Right now, we don't know where it's at," he said, although investigators are following several leads. He said he has asked the U.S. Attorney's Office in Roanoke to help with the investigation, since some federal tax issues may be involved.
"I will tell you that there are additional charges forthcoming involving private money," he said.
Each of the 18 charges of misuse of public funds could carry a prison term of two to 10 years.
Mitchell, in his capacity as administrator, also served on the county's Public Service Authority and Twin County E-911 Committee.
County Treasurer Lois McGrady was named to replace him. Acting County Administrator Jimmy Alderman replaced Mitchell as treasurer for the county's Solid Waste Authority. Delp, the board chairman, said all those appointments are temporary.
He said the Board of Supervisors has tightened financial procedures to include board approval of all salary payments and getting monthly reports on capital projects. The county has discontinued the use of credit cards by its employees.
"The Board of Supervisors wants the public to know that the system in place has worked," Delp said, referring to the audit that found the discrepancies. "We do not intend to let this regrettable incident impede progress."
He said the board soon will begin looking for another administrator. "We'll start that process, I guess, right away."
County Attorney Phillip Jones said officials hope the situation will not impede ongoing IDA projects that have helped bring several new industries into the county in recent years. He said the county also appreciates the patience of the public in waiting until a statement could be made on the matter.
"I mean, people want to know, have wanted to know ever since the initial meeting where Mr. Mitchell was suspended," he said.
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