Ex-DMR chief Bill Walker, eight others indicted in probe
Clarion Ledger
Nine people were indicted Thursday after a yearlong state-federal probe of
spending by the state Department of Marine Resources and a $3 million grant
to the city of D'Iberville, including the former director of DMR and a
former state lawmaker.
Longtime DMR Director Bill Walker, who was fired in January, along with his
son, Scott Walker, face federal indictments, as do former state Rep.
Michael Janus, R-Biloxi, and former DMR Chief of Staff Joseph Zeigler.
Sheila Tina Shumate, former DMR director of a coastal management program,
was indicted on federal and state charges.
Bill Walker, Scott Walker, Shumate and Zeigler were named in a five-count
federal indictment charting conspiracy to commit federal program fraud,
federal program fraud, conspiracy to commit mail fraud and mail fraud
involving DMR and the Mississippi Marine Resources Foundation.
Scott Walker and Janus are named in a separate federal indictment charging
conspiracy to commit program fraud, program fraud, bribery in connection
with a federal program and money laundering. The indictment alleges that
Scott Walker and Janus caused a false invoice for $180,000 to be submitted
to D'Iberville for payment of consulting services.
Scott Walker is a consultant, former Ocean Springs mayoral candidate and
former staffer to U.S. Sen. Trent Lott. Janus, a business partner of Scott
Walker, resigned as city manager for D'Iberville after questions about a BP
oil disaster grant that Scott Walker's consulting firm helped secure for an
ocean acquarium, allegedly without the knowledge of the D'Iberville City
Council.
The State Auditor's Office, FBI and U.S. Attorney's office have been
investigating spending of the coastal management agency under Bill Walker.
Those facing state indictments, arrested Thursday, are:
• Sheila "Tina" Shumate, former DMR director of the Coastal Impact
Assistance Program
• Kerwin Cuevas, former DMR director of artificial reefs program
• Leslie Gollott, former assistant to Shumate
• Grant Larson, former DMR marine administrator
• Susan Perkins, former DMR marine officer
Those facing state indictments turned themselves in to authorities on the
Coast on Thursday. Arraingment on federal indictments is expected next week
in federal court.
The State Auditor's Office on Thursday also issued civil demands for 10
people to repay a total of about $1 million to the state. They include
former DMR Director Walker, Ziegler, Shumate, Perkins, Larson, Cuevas,
Gollott, former head of marine patrol Walter Chataginer, and former DMR
employees Kerry Endris and Samantha Hebert.
Chataginer and Hebert were not indicted, but ordered to repay money.
Director Bill Walker, who was fired in January amid the state and federal
probe, has been issued a demand to repay $257,500, plus interest and
investigative costs, for a total of $362,700.
Shumate, who handled the federal Coastal Impact Assistance Program for DMR,
was issued a demand to repay $83,700, plus interest and investigative
costs, total of $127,600. She was indicted by the state Thursday on five
counts of embezzlement and one count of witness tampering.
Ziegler, DMR chief of staff who resigned in June, was ordered to pay a
total of $258,300 and Cuevas, former head of DMR's artificial reefs program
who quit in May was ordered to pay $108,400.
The state, U.S. Attorney's Office and FBI have been investigating DMR's
spending under Walker, who was fired in January.
A federal audit of the agency's spending of Coastal Impact Assistance
Program money from 2009 to 2012 found "an environment rife with conflicts
of interest," with nearly $16 million worth of land purchases and projects
that appeared to benefit friends and family of Walker and Shumate.
The program Shumate directed allegedly purchased property and a house in
Pascagoula owned by her parents for $195,000.
DMR allegedly also supplied money to purchase a vacant lot from Walker's
son, Scott Walker, for $210,000.
http://www.clarionledger.com/article/20131107/NEWS/131107012/Ex-DMR-chief-Bill-Walker-eight-others-indicted-probe-?gcheck=1
Bill and Scott Walker, Janus, two others indicted by federal authorities
Sun Herald
By ANITA LEE — calee@sunherald.com
Bill Walker, former executive director of the Mississippi Department of
Marine Resources, has been indicted on federal conspiracy and fraud
charges, along with his son, Scott Walker, and former DMR employees Joe
Ziegler and Tina Shumate.
Scott Walker and former D'Iberville City Manager Michael Janus are charged
in a separate six-count indictment with conspiracy to commit fraud, fraud,
bribery and money laundering. Scott Walker is accused of bribing Janus
while he was city manager in exchange for a $180,000 contract awarded to
Walker's firm.
The indictments have just been unsealed by the U.S. Attorney's Office. They
come on the heels of the arrests of five former DMR employees on state
embezzlement charges.
The charges against the Walkers and Shumate involve Jackson County property
that Scott Walker owned. The Walkers and Shumate allegedly conspired to
induce the Land Trust for the Mississippi Coastal Plain to buy the property
with federal funds. The five-count indictment also says Bill Walker had an
interest in the property.
The Walkers and Ziegler are accused of diverting public funds for their
personal use, including for deposit with a private organization Bill Walker
controlled, the Mississippi Marine Resources Foundation.
According to the U.S. Attorney's Office, the Walkers, Ziegler, Shumate and
Janus are scheduled to appear at 10 a.m. Friday in U.S. District Court
before Magistrate Judge Robert H. Walker.
The State Auditor's Office on Thursday charged Shumate, Kerwin Cuevas,
Susan Perkins, Leslie Gollott and Grant Larsen with embezzlement.
The auditor's office also has issued civil demands for repayment of funds
against 10 former employees, including Bill Walker, $362,689; Joe Ziegler,
$258,269; Tina Shumate, $127,609; Leslie Gollott, $117,593 and Susan
Perkins, $30,959.
Although he does not face charges, former DMR Marine Patrol Officer Walter
"Tiny" Chatagier faces repayment of $1,279.85. Former DMR employee Samantha
Hebert, Shumate's sister, and Kerry Endris also have been ordered to repay
money.
http://www.sunherald.com/2013/11/07/5095066/walkers-janus-two-others-indicted.html
Five former DMR employees indicted by grand jury
Sun Herald
By ANITA LEE — calee@sunherald.com
GULFPORT -- Five former Mississippi Department of Marine Resources
employees, including two who were top managers, were indicted by a grand
jury Thursday on charges that they converted state funds to their own use,
submitted hundreds of dollars in false travel vouchers or billed personal
gas to an agency card.
All five employees arranged to turn themselves in Thursday at the Harrison
County jail.
Tina Shumate, former DMR coastal management and planning director, faces
the most charges. Shumate, a close associate of former DMR executive
director Bill Walker, faces five embezzlement charges and one count of
tampering with a witness.
Shumate's attorney, Tim Holleman, said, "Tina hasn't embezzled one nickel."
A fifth former Mississippi Department of Marine Resources employee, public
relations specialist Susan Perkins, has been charged with two counts of
embezzlement.
Kerwin Cuevas, who headed the DMR's artificial reef program, has been
charged with three counts of embezzlement.
Leslie Gollott, a former projects officer at the DMR, also faces two counts
of embezzlement.
Former DMR employee Jere Grant Larsen is charged with one count of
embezzlement.
All five employees turned themselves in. Shumate, Cuevas and Gollott were
released on bonds of $5,000 for each charge. Bond for Perkins and Larsen
was $2,500 on each charge.
The State Auditor's Office and the Federal Bureau of Investigation have
been investigating operations at the DMR under former Executive Director
Bill Walker for more than a year. So far, charges in the case have been
brought by the State Auditor's Office.
http://www.sunherald.com/2013/11/07/5094245/arrests-expected-today-in-dmr.html
Five arrested today from Department of Marine Resources investigation
(updated, with video)
Mississippi Press
Gareth Clary
updated November 07, 2013 at 1:56 PM
BILOXI, Mississippi -- Tina Shumate, the former CIAP program director at
the Mississippi Department of Marine Resources was charged with 5 counts of
embezzlement and 1 count of witness tampering as arrests began in the
corruption probe of the state agency.
Meanwhile, the Clarion-Ledger is reporting that former DMR director Bill
Walker will be among nine people indicted in the investigation and ordered
to repay money.
"Tina Shumate never embezzled one nickel from the DMR or anybody else,"
Shumate's attorney Tim Holleman said today after her arrest. "We look
forward to proving that in court."
Three others were arrested on embezzlement charges.
Kerwin Cuevas, the former director of DMR's artificial reef program, and
Leslie Gollott, sumate's assistant, were each charged with two counts of
embezzlement while Grant Larsen, a DMR marine administrator, was charged
with one count of embezzlement. Larsen's bond was set at $2,000. All of the
others had a bond of $5,000 on each count.
Former DMR employee Susan Perkins, a marine officer, turned herself today
just before 1 p.m. She was charged with two counts of embezzlement with
bond set at $2,500 on each count.
The suspects began turning themselves in today about 11 a.m. at the
Harrison County Adult Detention Center.
Cuevas' attorney Donald Rafferty said "We look forward to the day we have
the opportunity to defend my client."
Presented with other questions, he repeated the same statement.
A section of a U.S. Inspector General's report earlier this year outlined
questionable purchases and management of real property by the DMR.
It details the $195,000 purchase of Pascagoula property owned by the
parents of Shumate and the $3.7 million purchase of Harbor Landing in Ocean
Springs from David Harris, a friend of former DMR executive director Bill
Walker.
http://blog.gulflive.com/mississippi-press-news/2013/11/five_arrested_today_from_depar.html#incart_river
Questionable land purchase, misuse of foundation in indictment against
Walkers, 2 former DMR employees
Mississippi Press
Gareth Clary
BILOXI, Missississippi -- The five-count federal indictment against the
former director of the Department of Marine Resources, his son and two
former DMR employees outline conspiracies to purchase property with family
and financial connections and the diversion state funds into the
Mississippi Marine Resources Foundation.
The actions of Bill Walker, Scott Walker, Tina Shumate and Joseph Zeigler
were detailed in the eight-page indictment.
Walker, executive director of the DMR, created the Mississippi Marine
Resources Foundation in January 2004, the indictment states. Shumate served
as DMR's director of coastal management and planning director, while
Zeigler served as DMR chief of staff.
According to count one of the federal indictment, the defendants from April
2011 to July 2011 would transfer funds from accounts under their care of
the DMR to the Land Trust for the Mississippi Coastal Plain to purchase
property in which the Walkers had financial or ownership interest with
federal funds.
It details the role of Shumate and Bill Walker in the sale of property
owned by Scott Walker in Ocean Springs by the Land Trust for the
Mississippi Plain, from filing invoices and signing sub-grant agreements.
Count two deals with the Walkers and Shumate misuse of $210,000 during the
same period as the land purchase.
Zeigler is mentioned in counts three through five with the Walkers.
Count three covers the diversion of funds to the Marine Resources
Foundation for their personal use or the use of others.
For example, on Nov. 20, 2006, Bill Walker and Zeigler had a $200,000 check
from the Southern Shrimp Alliance made payable to the foundation and on
Nov. 26, 2006, Bill Walker obtained a certificate of deposit in the amount
of $180,000 in the name of the foundation.
Counts four and five also involves the diversion of funds from the Rigs to
Reefs and the Southern Shrimp Alliance to the foundation, using the U.S.
post office for the execution of the scheme.
http://blog.gulflive.com/mississippi-press-news/2013/11/questionable_land_purchase_mis.html#incart_river
