Former East Tennessee Water Division Clerk Indicted For Theft And Credit Card Fraud

Thursday, May 23, 2013

Following a review by the Comptroller’s Division of Investigations, the former clerk of the Watauga River Regional Water Authority/North Elizabethton Water Division surrendered to the Carter County Sheriff’s Office this month after being indicted on charges of theft, forgery, official misconduct and credit card fraud.

The Comptroller's review found the former clerk, Lori Beth Feaster, had stolen cash utility collections, made personal purchases with district credit cards and took unauthorized check payments that amounted to tens of thousands of dollars.

Ms. Feaster used some of the agency’s funds to cover personal expenses such as a battery and windshield wipers for her car and an energy efficient front-loading clothes washer. 

In a report released on Thursday, the Comptroller’s investigators detailed how, in just two years, Ms. Feaster stole approximately $44,174 of ratepayer funds while handling and accounting for utility collections at the agency.

Investigators noted that it was Ms. Feaster’s ability to collect money, prepare bank deposits and sign checks on behalf of the agency without sufficient oversight which presented her with the opportunity to steal public funds. She capitalized on that situation by issuing more than $23,000 in checks to herself, taking more than $15,000 in cash utility collections and making more than $4,000 in fraudulent credit card purchases - all the while falsifying agency records to cover her tracks.

Ms. Feaster concealed $23,743 in checks made out in her name by fraudulently recording the payments in the agency’s accounting records as payments to a backhoe vendor. She also shorted cash utility deposits by at least $15,506.  In one instance, Ms. Feaster changed a $6,974.34 bank deposit slip prepared by another employee to $5,974.35 and kept $1,000 for her personal use.

“Theft or misuse of public funds is unacceptable, whether those funds come from tax dollars, utility bills or any other sources,” Comptroller Justin P. Wilson said. “These types of crimes need to be taken as seriously as any other type of theft.”

“The failure to adequately separate financial duties, as was the case here, is the most common weakness in accountability that allows for thefts of public funds to occur,” said L. Rene Brison, assistant director of the Comptroller’s Division of Investigations.  “It is imperative that all public officials and employees put adequate safeguards in place to prevent any single employee from having sole responsibility for each step in the collections and disbursements process.”    

To view the report online, go to: http://www.comptroller.tn.gov/ia/.


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: AARON, STEVE LYNN  2518 CRESCENT CLUB DR HIXSON, 37343  Age at Arrest: 50 years old Arresting Agency: East Ridge DOMESTIC ASSAULT DOMESTIC ASSAULT --- AKINS, JAVORIS  7604 STANDIFER GAP RD CHATTANOOGA, 37421  Age at Arrest: 20 years old Arresting Agency: Chattanooga DRIVING ... (click for more)

Fort Oglethorpe Arrest Report For May 20-26

Here is the Fort Oglethorpe arrest report for May 20-26: Cavin Lebron Davenport, 19, of 4000 Sunset Avenue, Chattanooga was arrested May 21 on charges of center lane violation, possession of marijuana and driving while license revoked. Shawn Daniel Whitaker, 31, of 73 Twin Lakes Road, Lafayette was arrested May 21 on charges of driving while license suspended and failure ... (click for more)

Fruit Basket Turnover

I have been teaching for 21 years now, so I’ve been through my share of school leaders. Every one of them taught me something important. Whether it was Don Bishop from Red Bank High School who, after almost 30 years at Red Bank, taught me to invest in the longevity of my career, Wade Kelly who taught me to thoroughly weigh options before making a decision, Gail Chuy who taught me ... (click for more)

Roy Exum: ‘Let Me Be Clear’

I have seen a lot of human beings who have gotten themselves in terrible messes in my time and more self-induced agony than I want to recall. Will Rogers famously said, “Give a man enough rope and he’ll hang himself.” That’s the truth and if you ever didn’t think that “Politics corrupts,” consider the genius behind the line, “It ain’t long those who get elected … begin to think ... (click for more)

Chicago Fire Wins Steinbrecher Cup 2-1 In Overtime

It took 120 minutes to decide who is the best US amatuer soccer team Saturday night at Finley Stadium as the Chattanooga Football Club took on the Chicago Fire of the PDL.   The Fire would score first but Chattanooga tied the match early in the second half.  Luke Winter scored the equalizer in the 47th minute off a Jon Finlay cross.   The game would remain tied ... (click for more)

Harrison Sparks Lookouts To 3-2 Win Over Smokies

For the second straight night Travis Harrison delivered in the clutch for the Chattanooga Lookouts. Tonight the third baseman drove in all three runs in the team's 3-2 win over the Tennessee Smokies before a crowd of 4,765 at AT&T Field. Harrison kicked off his night in the third inning with an RBI single to bring home Zack Granite who reached on a walk. Chattanooga ... (click for more)