Wednesday, March 23, 2016

Fairley indicted!!!

U.S. Attorney Greg Davis issued the following press release:

HATTIESBURG BUSINESSMEN INDICTED FOR FRAUD RELATING 
TO GOVERNMENT HOUSING CONTRACT

Hattiesburg, Miss – Kenneth Fairley, 62, of Hattiesburg, and Artie Fletcher, 55, of Picayune, have been charged in a federal indictment with a scheme to defraud the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Gregory K. Davis, IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, HUD Special Agent in Charge Nadine Gurley, Federal Bureau of Investigation Special Agent in Charge Donald Always and Mississippi State Auditor Stacey Pickering.

Fairley and Fletcher are charged with devising a scheme to defraud HUD in connection with a government contract issued to the City of Hattiesburg for the rehabilitation of three residential properties located within the city limits. The project was supported by federal funding and was executed through sub-contracted work to be completed by Pinebelt Community Services, a local non-profit operated by Fairley. The indictment alleges that Fairley conspired with Fletcher to fraudulently perform the work for a lesser amount than represented on the HUD contract, with the difference in the bid and actual costs being transferred to Fairley, through Fletcher, for purposes not intended by the government contract.

The indictment charges Fairley with one count of conspiracy to defraud the United States, two counts of theft of government money, one count of conspiracy to commit money laundering, and two counts of engaging in monetary transactions in property derived from unlawful activity.

Fletcher is charged with one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering, and one count of engaging in a monetary transaction in property derived from unlawful activity.

“When the federal government provides resources to local cities and county governments, the U.S. Attorney’s Office will be vigilant in vindicating the interests of the taxpayers when federal and state law enforcement agencies determine that the funds have been stolen or misused,” said U.S. Attorney Gregory K. Davis.

IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, stated: "While the indictment is merely an allegation with respect to the charges of money laundering violations and conspiracy to commit money laundering, IRS -CI takes the investigation of all crimes related to the misuse of taxpayer dollars very seriously. Our special agents will pursue the charges alleged against Mr. Fairley and Mr. Fletcher until the ends of Justice are served in this matter."

"Schemes that defraud the government are akin to stealing from American taxpayers", said Donald Alway, Special Agent in Charge of the FBI in Mississippi. "We take that very seriously. The FBI is committed to tracking and shutting down fraud schemes like the one alleged in the indictment. I also want to thank our law enforcement partners for their dedicated work in this case."

“I want to thank the Federal and State investigators who worked together on this case,” said Mississippi State Auditor Stacey Pickering. “They are the unsung heroes who work to protect the taxpayers.”

Fairley and Fletcher were arraigned before U.S. Magistrate Judge Michael T. Parker in Hattiesburg today. They are scheduled for trial before U.S. District Judge Keith Starrett on April 18, 2016.

The maximum penalties for the crimes charged in the indictment are as follows: Conspiracy to defraud the U.S. - 5 years in prison and a $250,000 fine; Theft of government money – 10 years in prison and a $250,000 fine; Conspiracy to commit money laundering - 20 years in prison and a $500,000 fine or twice the amount of the criminally derived property involved in the transaction; Engaging in monetary transaction in property derived from specified unlawful activity - 10 years in prison and $250,000 fine or twice the amount of the criminally derived property involved in the transaction.

This case was investigated by the U.S. Department of Housing and Urban Development, IRS – Criminal Investigation, Federal Bureau of Investigation, and the Mississippi State Auditor’s Office.

The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.

19 comments:

Anonymous said...

Thanks for posting KF. Lifelong Hattiesburger and I actually lean left, but I could never support Fairley, Dupree, or anyone from that crowd.

Anonymous said...

Pastor Fairley was trying to raise enough money from this fraud in order to pay back some of the money he stole from Marcus Dupree.

Anonymous said...

Fairley is a fraud and a huckster on all levels. Look at Mt Carmel...falling down because he didn't pay the insurance premiums. How much longer will the congregation continue to allow him to "perform" from the pulpit like a Las Vegas show clown? He is simply a wanna be Jesse Jackson and Al Sharpton. Congratulations Fairley on your epic fail!

Anonymous said...

It's about time this hustler was brought to account. Fairley has used the "reverend " title to assist the various hustles he pursues since he became a fixture with the USM football program. This kind of money worship has been a cancer in the Black community when it so needed a productive leader. People all over the country were shocked to see the kind of shameless thievery this hustler imposed on a naive Marcus Dupree. And he didn't stop. I hope the mayor and people of Hattiesburg realize that leadership and wealth are not the same thing.

Anonymous said...

Since when has Fairley has been a fixture with USM football? If anything, he's anti-USM. He got the entire black community in Hattiesburg to vote against a bond issue in 2004 that would have greatly helped improve athletic facilities.

Anonymous said...

Many years ago, Fairley was employed at USM as a counselor. I believe it was during that employment as a staff member when he became entrenched in the Marcus Dupree saga that was chronicled in the ESPN documentary.

In addition to Marcus Dupree, I suspect former USM wide receiver Louis Lipps might have some insightful comments about how the "Reverend" Fairley "represented" his financial interests when he played in the NFL for the Pittsburgh Steelers. A funeral home investment, maybe? Other investments?

Anonymous said...

I believe the word used when he allegedly stole Louis Lipps money was
co-mingling clients funds. Or accidentally put clients money in agents personal account?

Anonymous said...

Getting this scumbag is a good start. Plenty more to go in Hattiesburg, including those that have probably been sharing in Fairley's largess over the past several years. Hope the feds and the auditor don't stop now - plenty more to dig up and put in jail along with these two.

Anonymous said...

Look at the recent contract with Johnson Controls and City of Hattiesburg. Fairly got paid. Feds onsite now...

Anonymous said...

https://hattiesburg.legistar.com/LegislationDetail.aspx?ID=2374438&GUID=595F167B-0760-41EF-BD22-661525087197&Options=&Search=

Anonymous said...

Fairley was never anti-USM. He's anti-anybody who ain't got the price. Obviously USM didn't want the bond issue bad enuff. Understand?

Anonymous said...

It's also interesting that the Forrest County chief deputy and his wife have been indicted on multiple counts of federal tax evasion and filing false tax returns.

The tax issues appear to be connected to a restaurant and a liquor store owned by the couple. I wonder if the food fraud at the Forrest County Jail is in any way connected?

Delbert might not be able to get this group on the voter fraud that stole the Hattiesburg mayoral election from Dave Ware, but the feds might be able to get them for other types of fraud. I say keep digging and keep connecting the dots in Hattiesburg and Forrest County.

Meanwhile, Johnny DuPree has already announced (after prayerful consideration with his family and no doubt with his pastor, Ken Fairley) he will be a candidate for reelection in 2017. Interesting timing that he made the announcement shortly before these federal indictments were handed down.

pjm said...

this is like the best news ever.

Anonymous said...

I bet he does not serve over 6 months.

John Dough said...

Are Johnny DuPree and Marcus DuPree related?

Anonymous said...

Hang him.

Anonymous said...

Hey 10:58 from yesterday, you're coffee break at Seimens is over, get back to work. I've never seen a more corrupt group than this german outfit who built Hitler's ovens. You are talking about your own 90 million dollar fraud on the city of Jackson. Please don't lie like that, misery must love company.

Anonymous said...

Ken Fairley might want to consult with Scott Walker on how to get a light sentence from Judge Keith Starrett.

Anonymous said...

No kin between Marcus and Johnny. And Delbert isn't doing a damn thing about the election fraud in Hattiesburg - not the first election or the fraud in the second one even though he showed up and claimed he was 'in charge' and would assure it was done right. That proclamation by Delbert lasted about fifteen minutes and his ineptness shined through. Best thing Delbert can do is get out of the way and let the feds try to clean up this mess.

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