Criminal charges have been brought against seven individuals in a multi-million dollar fraud scheme involving the Water Works and Sewer Board of the City of Prichard. U.S. Attorney Sean P. Costello unveiled a thirty-two count indictment from a federal grand jury in Mobile. The indictment includes charges against Nia Bradley, Randy Burden, Steve Jones, Larry Knight, and Dejuan Lamar. Two individuals, Ayanna Payton and Stephanie Hunn, have already pleaded guilty and await sentencing.
The indictment details that from 2018 to 2022, the defendants engaged in a fraudulent contractor scheme. This scheme involved external contractors, employees, and members of the Prichard Water Board. Approximately $2.4 million was reportedly misappropriated, with around $960,000 laundered through a business operated by Bradley and Burden.
The Prichard Water Board provides services to 8,000 residential and 2,000 commercial clients. It is funded by customer payments and a $55 million bond from 2019. The charges include the creation of a fictitious business by Hunn and the use of false invoices for illicit payments. Evidence suggests Bradley and Burden falsified payment authorizations, benefiting from kickbacks.
According to the indictment, Payton and another uncharged individual, both board members, falsified payment authorizations, receiving kickbacks as well. The alleged co-conspirators also communicated through coded messages and destroyed evidence. The criminal actions also involved tax fraud by Bradley, Payton, Hunn, and Jones. The U.S. is pursuing money judgments totaling over $3.7 million and forfeiture of properties acquired through fraud.
Nia Bradley's charges include conspiracy to commit fraud and money laundering, as well as tax-related offenses. Randy Burden faces similar charges. Steve Jones is indicted for fraud and filing false tax returns. Larry Knight and Dejuan Lamar are accused of bank fraud-related offenses. Payton and Hunn, who pleaded guilty, are waiting for their sentences.
Sean P. Costello stated, "The taxpayers of the Southern District of Alabama deserve to be able to rely on competent, honest public servants." Costello affirmed the investigation's thoroughness, highlighting the importance of protecting taxpayers against fraud.
FBI Mobile Division Supervisory Special Agent Parker Still asserted, "Fraud and theft by government employees from the very people they are put in place to serve will not be tolerated." IRS Special Agent in Charge Demetrius Hardeman emphasized the wasteful nature of corruption and the commitment to prosecuting offenders. Meanwhile, Acting Postal Inspector Shameka Jackson affirmed their dedication to protecting the mail system against misuse.
The investigation was conducted by the FBI, IRS Criminal Investigation, and Postal Inspection Service, with help from local authorities. Assistant U.S. Attorneys J. Bishop Ravenel and Kasee S. Heisterhagen are prosecuting. It's important to note that an indictment is not proof of guilt, and defendants are presumed innocent until proven otherwise.