Truckloads of items were hauled from Terry Case’s home and returned to the South Pittsburg Housing Authority last year.
A surround sound stereo system, Xboxes, pool furniture, a chain saw, portable propane heaters, landscape lighting and power tools were among items found in the former housing authority executive director’s possession.
Case said he was simply storing the items — not even using the goods, but protecting them — and his staff knew about it.
“[It was] no secret,” he said.
But several board members think the items were purchased for personal use, on the Housing Authority’s tab.
Since last summer, the Tennessee Comptroller’s office has been investigating the Housing Authority amid allegations of misuse and misappropriation of funds.
Case, who is chairman of the Marion County Board of Education, said he was the first person to suspect a potentially fraudulent situation at the Housing Authority, and after looking into it, reported his findings to the authority board and various authorities.
Housing authority board Vice Chairman Virgil Holder said the board is not certain how much money was embezzled — the comptroller’s investigation is expected to determine that. However, the board has its own approximations.
In the 2014 fiscal year alone, $144,000 was unaccounted for and $46,000 was misappropriated from the Elderly Housing Authority, Holder said.
“And we believe there was more,” he said. “… This went on for years.”
District Attorney Mike Taylor said he is periodically briefed by the comptroller, and was told last week that investigators are still examining records.
No charges will be filed against anyone until the investigation is complete.
Holder said no records were kept under Case’s leadership and investigators are having to build a list of expenditures and other financial statements from scratch.
“It’s really a bit involved of a process,” he said.
Case was executive director of the Housing Authority for eight years before the board voted to request his immediate dismissal on July 3, 2014.
After Case’s dismissal, the remainder of the office staff, except for the secretary, “officially resigned,” Holder said.
“Since we have taken over and cleaned house, we are now current on all outstanding bills and debts,” Holder said. “This board [and new Executive Director Lisa Bradford] have worked their hind-ends off to get this thing straightened out.”
The board has worked closely with Bradford to make sure that all state policies and laws are being followed, and recently approved a more stringent fraud policy that emphasizes public transparency.
“We are managing taxpayers’ money, and want to make sure we are very transparent with the community,” Holder said.
“The community is still trying to build trust, because of the things that have gone on,” he said. “… And with the agency run correctly and properly, we can do so much for the community, and do it right.”
Contact staff writer Kendi Anderson at kendi.anderson@timesfreepress.com or 423-757-6592.