HATTIESBURG, Miss. (AP) - Hattiesburg pastor Kenneth Fairley will spend three years in prison after being convicted of skimming federal money from a housing rehabilitation program
U.S. District Judge Keith Starrett sentenced Fairley on Monday, according to local media, also fining him $30,000 and ordering $60,000 in restitution to the U.S. Department of Housing and Urban Development.
“There is no question in my mind there was a crime here,” the Hattiesburg American (https://hatne.ws/2hO5xe9) quoted Starrett as telling Fairley. “I don’t like passing sentence, especially for someone who has done so much for his community. But as someone who is well-known in the community, you have an obligation to set an example.”
Starrett overruled objections by Fairley’s attorney to a sentencing report prepared by a federal probation officer.
A close political ally of Hattiesburg Mayor Johnny DuPree, Fairley will turn himself into prison within 60 days.
Fairley was convicted Sept. 12 on three counts of conspiracy and theft for skimming money from a federal housing program. Witnesses testified at trial that Fairley took at least $60,000 of $98,000 in federal funds passed through the city to a nonprofit he led. The money was supposed to be spent on rehabilitating two houses, but witnesses said it appeared little work had been done. The rest of the money was supposed to go to subsidize Fairley’s church.
Some evidence was introduced at trial showed DuPree was involved in aiding the project, but the mayor hasn’t been charged.
Fairley once served as the agent for University of Oklahoma running back Marcus Dupree, who’s from Mississippi. Dupree later sued Fairley. The mayor and the running back aren’t related.
Starrett sentenced co-defendant Artie Fletcher on Monday to three years’ probation, ordering the developer to pay $69,000 restitution to HUD. Fletcher pleaded guilty to failing to report a felony after being indicted on more serious charges.
“It appears to me your involvement in this matter was more of a desire to help instead of defrauding the government,” WDAM-TV quoted (https://bit.ly/2hRKrsv) Starrett as telling Fletcher.
Fletcher said he would pay the amount by the end of the week.
“I understand the importance of reporting a crime,” Fletcher said during his sentencing.
In a separate case that grew out of the same state-federal corruption probe, Starrett on Monday delayed sentencing until Jan. 18 for former Forrest County Chief Deputy Charles Bolton and his wife after the Fairley hearing ran long.
Charles Bolton was convicted in September of four counts of tax evasion and five counts of filing a false tax report. Linda Bolton was convicted on five counts of filing a false tax report.
Evidence showed the Boltons were listing income from their restaurant and liquor store as nontaxable loans and cashing checks without accounting for the money. Charles Bolton was fired from his job after his conviction.
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Information from: WDAM-TV, https://www.wdam.com
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