Financial Fraud Story Archives - West Virginia Public Broadcasting

New Superintendent Named For Upshur County

Christy Miller was named as Superintendent of Upshur County Schools by the West Virginia Department of Education Monday evening.

A new leader has been chosen for Upshur County Schools amid a continuing investigation.

Christy Miller was named as Superintendent of Upshur County Schools by the West Virginia Department of Education Monday evening.

She is currently the Taylor County superintendent and will take on the new role July 1.

The appointment comes amid the continuing Special Circumstance Review of Upshur County. The board declared a state of emergency in Upshur County Schools on June 14.

Earlier this year board investigators discovered the misuse of federal funds, as well as non-compliance with purchasing procedures. The state is reviewing the county’s spending practices.

Miller will take over for Interim Superintendent Steven Wotring, who was named to the post temporarily following the board’s intervention.

Wotring will move to an advisory role as a transition liaison who will assist county leadership during the review and recovery process.

In a press release, Miller said she will work with the community to restore Upshur County Schools’ reputation.

Christy Miller

*Courtesy of the West Virginia Department of Education*

“Upshur County has a tradition of strong academic programs and community support,” she said. “The schools have been a source of pride, and they should be because they reflect the heart of the community. We will restore this reputation and pride, but it will take some work. We have some obstacles to overcome, and I know we can do it together for the benefit of the children and families of the county.”

State Takes Control Of Upshur County Schools

A special circumstances review of Upshur County Schools by the West Virginia Department of Education revealed tens of thousands of dollars in misspent federal funds, among other financial misappropriations.

The West Virginia Board of Education has declared a state of emergency in Upshur County Schools.

A “special circumstances” review of Upshur County Schools by the West Virginia Department of Education revealed tens of thousands of dollars in misspent federal funds, among other financial misappropriations.

A preliminary report was presented to the board Wednesday by Jeffrey Kelley, accountability officer for the Department of Education. The findings Kelley presented included food and beverage charges for staff retreats at Stonewall Resort totaling $49,260 using funds designated for federal programs.

“(The) team also discovered an instance of a contract for a staff retreat at a bread and breakfast in Buckhannon totaling $1,415.94,” he said. “Overnight accommodation was provided at the bed and breakfast, which is located six miles from the board office.”

Nancy White, state board vice president, said the report is incomplete but concerning.

“I believe we have enough that tells us that these actions are very egregious, unethical and perhaps criminal,” she said.

However, there were questions from the state board about the timeline of the investigation, and why they were not notified sooner. State Superintendent David Roach told the board the special circumstances review was prompted after a routine review of Upshur County Schools in December 2022 that was completed in February 2023.

“I’m just trying to establish some baseline facts because my concern is, we’ve known about this since March,” said board president Paul Hardesty. “No action, no activity, no nothing, no correspondence with this board until May the 26th. I find that troubling on numerous fronts.”

The board went into executive session due to the incomplete nature of the report and the desire to delve deeper into its contents without compromising the personal privacy of subjects involved.

After close to four hours in executive session, Roach made 18 recommendations to the state board, including that a state of emergency be declared in Upshur County Schools.

“That the West Virginia Board of Education direct the interim and future Upshur County superintendent and the Deputy State Superintendent jointly develop and present to the state board at a future meeting a set of standards and or a strategic plan that must be implemented in order for the County Board of Education to regain control of the school system,” Roach said.

Roach also recommended the board grant the Deputy State Superintendent authority to take action necessary to correct the extraordinary circumstances in Upshur County.

The board unanimously approved the superintendent’s recommendations.

The office of the county superintendent of Upshur County Schools, along with positions of personnel who serve at the will and pleasure of the county superintendent, were declared vacant at the end of the business day.

Stephen Wotring, currently serving as superintendent of Preston County Schools, was named interim superintendent of Upshur County Schools.

The investigation is ongoing. One investigator told the board only 1 percent of Upshur’s total transactional data had been reviewed so far.

Hardesty said that West Virginia State Police were sent to secure the central office of Upshur County Schools effective until the West Virginia Department of Education can get their personnel on the ground.

Combating Elder Financial Exploitation Remains A Constant Battle

Crimes of elder financial exploitation damage more than a senior citizen's bank account.

Crimes of elder financial exploitation damage more than a senior citizen’s bank account.

James Lindsay is a financial exploitation attorney for Legal Aid of West Virginia and a leader in a multi-agency state task force fighting elder financial abuse.

Lindsay addressed the West Virginia Legislature’s interim meeting of the Children and Families Committee Tuesday. He said about half of the state’s 16,000 elder abuse and neglect cases involve financial exploitation.

“Financial exploitation is what we call the biggest ‘silent crime’ in the United States,” Lindsay said. “One study from the Government Accountability Office found about $5.5 million in assets from about 158 incapacitated victims, most of whom were seniors. The estimated cost of financial exploitation in the United States is approximately $3 billion.”

Lindsay listed the usual suspects in elder financial exploitation, including computer hackers, identity thieves, IRS scams, government impostors and impostor businesses. However, he focused his remarks on nearly half of all state and national scam artists, calling them the ‘“unusual suspects.”

“These people come from diverse professional backgrounds. We’ve had engineers, bankers — these are trusted agents, consumers, friends, family, people who the elderly trust with their finances,” Lindsay said. “A lot of family members, spouses, caregivers, needy children, grandchildren, best friends and neighbors, guardians and conservators.”

He said several recently passed West Virginia laws have greatly aided in investigation, prosecution and returning millions in lost assets.

“Judges can award double or treble damages under the statutes. There is a fee shifting statute to the preponderance of the evidence standard,” Lindsay said. “We have a two year statute of limitations in West Virginia. Judges also have the power to freeze assets, provide injunctive relief, appoint receivers, void contracts or require security be posted.”

Lindsay told lawmakers that creating a state consumer protection penalty and restitution fund would bolster the criminal battle and aid victims in recovery.

“The fund would provide consumer enforcement actions and distribute compensation to eligible consumers and victims,” Lindsay said. “This is something that could be administered by a state agency.”

National studies show elder financial crime victims are twice as likely to die at an earlier age.

Wetzel County Car Dealer Pleads Guilty to Financial Fraud

A New Martinsville car dealer faces up to five years in prison after pleading guilty to federal financial fraud charges.

Clarence Joseph Jackson pleaded guilty on Friday to structuring transactions to evade reporting requirements. The 48-year-old New Martinsville resident owned and operated Jackson’s Used Cars LLC.

U.S. Attorney William J. Ihlenfeld II said Monday in a news release that Jackson attempted to circumvent federal banking laws by dividing a large amount of cash into multiple deposits, which he made into a business account at Union Bank.

Federal law requires banks to report all cash transactions higher than $10,000. Banks must treat multiple transactions made by or on behalf of the same person as a single transaction if the total exceeds $10,000 during any business day.