The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, March 28, 1995                TAG: 9503280249
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PERRY PARKS, STAFF WRITER 
                                             LENGTH: Medium:   53 lines

MAN IN UNITED WAY PROBE MAY SHARE BIG INHERITANCE

The Elizabeth City man being investigated in connection with the mishandling of about $100,000 in local United Way funds could inherit more than that amount under his late mother's will.

Estate documents signed and dated Monday in Dare County Superior Court in Manteo show that James Graham Foreman Jr., former executive director of the Albemarle Area United Way, will share an estimated $580,000 from his mother's estate with two others.

The inheritance raises the possibility that the United Way, which has said it will seek repayment by Foreman, can recoup its losses. But Albemarle Area United Way Chairman Jerry Miller declined to comment on the issue Monday.

``We will be pursuing legal means for restitution, but I cannot give any specifics on that at all,'' Miller said.

Foreman, 31, resigned from the $14,500-a-year United Way job after being suspended without pay in early February. He is the target of an investigation into the diverting for personal use of some $102,000 through an unauthorized bank account over the past two years.

The discovery of the lost funds led to the United Way's announcement two weeks ago that the organization's 20 member agencies in northeastern North Carolina will lose about $45,000 in expected assistance next quarter.

Foreman's mother, Carol Armstrong Blakely of Southern Shores, died Feb. 28. A will prepared in August 1992 divides her property among her husband, Clifford G. ``Pete'' Blakely Jr, 66; her daughter, Emily F. Brothers, 34, of Kill Devil Hills; and Foreman.

The will bequeaths Carol Blakely's home at 1803 Rivershore Road - which is listed as Foreman's address - to Foreman and his sister. On the sale of that home, Foreman is to receive slightly more than half the proceeds, the will says. Real estate agents said last week that the house has a list price of $315,000.

Except for certain items - a Kill Devil Hills home granted to Brothers, vehicles and the Southern Shores property left in Clifford Blakely's charge, and some other itemized objects - the will says Foreman and Brothers will share equally in the remainder of the estate.

Foreman, who reportedly does not have a telephone, could not be reached.

Thomas P. Nash, the Elizabeth City attorney hired by the United Way to go pursue repayment, did not return phone calls.

Miller said the agency still hopes to recover about $35,000 through its fidelity bond and is working on strategies for making up its funding gap.

The United Way's member agencies were scheduled to meet with Miller tonight to discuss interim fund-raising plans in advance of the organization's fall campaign. by CNB