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State Auditor Stacey Pickering Issues...

State Auditor Stacey Pickering Issues $500k Demand for Misspent Drug Forfeiture Funds in Pelahatchie

By: Sarah Ulmer - May 21, 2018

Today, special agents from the Mississippi Office of the State Auditor (OSA) delivered civil demands to several current and former officials in the Town of Pelahatchie. Drug seizure funds, which are required to be used for law enforcement purposes, were misspent by the Town. Two demands were issued for a total $502,363.07, which includes interest and investigative costs.

Mississippi law requires the transfer of all funds received through the forfeiture proceedings under the Uniform Controlled Substance Law into the budget of the corresponding law enforcement agency. A review of Pelahatchie’s Forfeiture Account shows this transfer did not occur. After an OSA investigation, several illegal transfers were discovered. Some of the illegal transfers relate to:

  • Transfers to the Town’s Enterprise Account (Utility Account)
  • Transfers to the Town’s Special Fire Fund
  • Transfers made to prevent overdraft in the regular Town checking account
  • Transfers to pay salaries of non-police department employees
  • Transfers to pay for items not associated with the Pelahatchie Police Department in any way

In Mississippi, asset forfeiture has a dual purpose of discouraging drug trafficking and providing a direct benefit to law enforcement agencies across the State. The goal of asset forfeiture is to provide police departments with additional funds to spend on equipment, additional training, officer overtime payment, and salary to hire new officers. The intent is to provide citizens with a better equipped and more qualified police department.

The first demand, totaling $421,688.10, represents the period of January 2015 to June 2017. It was issued to: former mayor, Knox Ross, Jr.; former alderman, Jerry Norwood; former alderwoman, Megan Hall; former city clerk, Bettye Massey; current alderman, Frank Boyd; current alderman, Michael Adams; and current alderwoman, Margie Warren. All recipients of this demand are jointly responsible for its repayment.

The second demand, totaling $80,694.97, represents the period from July 2017 to December 2017. It was issued to: former city clerk, Bettye Massey; current mayor, Ryshonda Beechem; current alderman, Eddie Jones; current alderman, Frank Boyd; current alderman, James Harrell; current alderman, Michael Adams; current alderwoman, Margie Warren. All recipients of this demand are jointly responsible for its repayment.

State Auditor Stacey Pickering said, “For years, the leadership of Pelahatchie abused these funds by attempting to use them to enhance the overall city budget when they were mandated to be allocated to the Pelahatchie Police Department. OSA will continue to work to assist local governments when questions regarding proper use of public funds arise, but we will also ensure that misspent money is recovered on behalf of Mississippians.”

Elected as Mississippi’s 41st State Auditor in 2007, Stacey Pickering was re-elected as State Auditor in 2011, and in 2015. Since 2008, Pickering has recovered more than $26 million in embezzled, misappropriated and misspent taxpayer money on behalf of Mississippians.  In 2014, Auditor Pickering received the David M. Walker Award for excellence in accountability from GAO.  Auditor Pickering was honored with the National State Auditor’s Association’s “National Excellence in Accountability Award” in 2012.  In 2009, and again in 2013, the Department of Defense honored him with a Patriot Award in recognition of his extraordinary support of its employees who serve in the Mississippi National Guard and Reserve.  Auditor Pickering currently serves on the Domestic Working Group for the Office of the Comptroller General of the United States. He also serves as President of the National State Auditor’s Association.  Stacey serves in the Mississippi Air National Guard and is also a dedicated troop leader for Boy Scouts of America.  Auditor Pickering is a seventh-generation Mississippian from Jones County. He and his wife, Whitney, live in Laurel, Miss.

Auditor Stacey Pickering Press Release


About the Author(s)
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Sarah Ulmer

Sarah is a Mississippi native, born and raised in Madison. She is a graduate of Mississippi State University, where she studied Communications, with an emphasis in Broadcasting and Journalism. Sarah’s experience spans multiple mediums, including extensive videography with both at home and overseas, broadcasting daily news, and hosting a live radio show. In 2017, Sarah became a member of the Capitol Press Corp in Mississippi and has faithfully covered the decisions being made by leaders on some of the most important issues facing our state. Email Sarah: