MEMPHIS, Tenn — The Tennessee Comptroller’s Office said Wednesday, after a lengthy investigation into malfeasance in the town of Mason in Tipton County, two officials have been indicted on charges.
The comptroller also said the town’s former mayor, who served from 2015 to 2018, was also investigated. The office did not say if the former mayor faces charges.
The comptroller also released its report on the investigation, which covered nearly seven years of operations. This all comes as the comptroller’s office continues to have enhanced supervision over the Town of Mason’s fiscal condition, keeping an eye on the budget, requiring monthly financial records and reports, and new policies to address findings.
The investigation into two town officials
Former town finance officer Reva Marshall and town human resources manager Michele Scott were indicted by both a Tipton County Grand Jury and a Shelby County Grand Jury on charges of theft and official misconduct. The comptroller said both women also worked full-time for Memphis-Shelby County Schools (MSCS) while they worked for Mason.
In the report, the comptroller said Marshall received more than $81,400 in improper wages, benefits, and reimbursements. It said Marshall received compensation for 7,000 hours of work, while only actually working just under 3,000. The comptroller said Marshall approved her own timesheets and processed payroll for all the town’s employees until she left in July 2022.
The comptroller said Scott received more than $40,600 in improper wages and benefits. The office said timesheets showed Scott worked just over 5,300 hours but received compensation for nearly 8,000 hours of work.
Because both Marshall and Schott worked for MSCS at the same time as their employment with Mason, the comptroller said investigators determined the women “double-dipped” and received compensation for the same hours of work from both MSCS and Mason. The comptroller said Marshall received more than $22,600 and Scott received more than $10,200 in improper wages and benefits from MSCS.
View the full investigative report HERE.
When asked about the employees' status with MSCS, the district told ABC24 that Marshall is on administrative leave and Scott is no longer a District employee.
Resulting indictments
A Tipton County Grand Jury indicted Marshall on one count of theft over $10,000, one count of theft under $1,000, and one count of official misconduct. The Tipton County Grandy Jury indicted Michele Scott on one count of theft over $10,000, one count of theft over $2,500, and one count of official misconduct.
A Shelby County Grand Jury indicted Marshall on one count of theft over $10,000, and one count of official misconduct. It indicted Michele Scott on one count of theft over $10,000, and one count of official misconduct.
Read the indictments HERE.
Former mayor also investigated
The comptroller’s report also investigated the former mayor, who is unnamed in the report. The office said she misappropriated more than $8,777 for personal gain, including reimbursements from trips, meals, and other personal expenses. They said among that was a January 2018 trip to Monrovia, Liberia for 10 days, which the town paid for, but the comptroller said a former employee stated it was a personal vacation. The former mayor lost re-election in November 2018.
Investigators also questioned more than $11,800 of credit card transactions and reimbursements by the former mayor, and another $45,600 of unsupported credit cards transactions and reimbursements by town employees.
To view the full investigative report, go to tncot.cc/doireports.
Comptroller’s statement
“The investigative report includes a list of eight significant deficiencies in the town’s government operations that not only led to misappropriation, but have also contributed to the town’s long history of audit findings and financial trouble,” said Comptroller Jason Mumpower. “In particular, town officials have failed to properly oversee payroll, credit card transactions, cell phones, vehicle maintenance, travel, and inventory. The town has also allowed various hired consultants to have too much control over the town’s operations and finances.”