Fairley trial: Testimony expected to wrap up Saturday
The defense called several witnesses Friday in the trial of the Rev. Kenneth Fairley, accused of two counts of theft of government funds and conspiracy to defraud the government, involving money received from HUD through grants administered by the City of Hattiesburg.
The government rested its case Friday morning without calling any additional witnesses.
The defense wanted to present a series of expert witnesses, but the prosecution objected, saying the time had passed for notifying them of the intent to call these witnesses.
The prosecution also objected because the first expert the defense wanted to call had been in the courtroom listening to testimony.
Court was recessed for more than an hour while U.S. District Judge Keith Starrett decided how to proceed.
Starrett said he would allow the expert witnesses to testify, but only as fact witnesses.
Some of the witnesses testified to the amounts of receipts and expenditures related to two Hattiesburg homes rehabilitated by Pine Belt Community Services, of which Fairley is director.
Jonathan Brown, an administrator for the City of Fort Lauderdale, Florida's state and federal grant programs, said he knew Fairley, and had talked with Artie Fletcher, who was indicted with Fairley in March.
Fletcher is owner of Interurban Corp., which provided seed money and was listed as contractor for the two rehabilitated houses. He pleaded guilty Sept. 2 in federal court to misprision of felony. He admitted he had knowledge of a felony and did not make it known to authorities. His sentencing on that crime is set for Dec. 19. The maximum penalty is three years in prison with up to one year post-release supervision and up to $250,000 in fines.
Brown, who also sits on a board for a Community Housing Development Organization in Florida, said Fletcher offered his group a similar opportunity to make use of Interurban's seed money and contractual services. Brown said his group turned down the opportunity, saying it was not a good fit, as Fletcher wanted in return the remainder of the group's operational funds at the end of the project.
Brown also affirmed the HUD reimbursement structure, saying HUD only deals with participating jurisdictions — the City of Hattiesburg in this instance — which administer the funds to the CHDO or Pine Belt Community Services.
He said the participating jurisdiction would not get reimbursement money if all the receipts and invoices didn't add up and the work wasn't done properly.
"If the work was not done, we're not paying them," Brown said.
Other witnesses testified to the cost of the projects. Brent McDaniel, a forensic accountant with Price Waterhouse Cooper, said on top of the $38,000 in receipts, Pine Belt Community Services showed it had invested another $97,000 in salaries, insurance and other expenses during the time of the housing rehabilitation, essentially spending more than it took in.
Nick Autorina, a private consultant and HUD program manager in Atlanta, said he did not see anything unusual in Pine Belt Community Services' record keeping.
"Record keeping is very challenging," Autorina said. "However, whatever was provided to the city was acceptable to HUD."
Two people involved in the actual rehabilitation testified that volunteers and employees did much of the labor, and at one point, former Hattiesburg Ward 4 Councilman Dave Ware went on one of the periodic home inspections
"Dave Ware said he was satisfied," project manager Gabriel Bobbett said.
Starrett was not as satisfied with court proceedings Friday. He chastised defense attorneys for attempting to introduce expert witnesses well past the deadline of when such a witness could be admitted to testify. He said the defense appeared to be "betting on a trial by ambush."
He cited other issues with the proceedings, saying he would not continue the trial and wanted it to wrap up without further delay.
"My frustration is evident — or at least it has been," Starrett said. "The discovery issues I've had to deal with in this case is just wrong."
Testimony in Fairley's trial should run most of the day Saturday and wrap up with closing arguments and jury deliberations Monday.
Boltons' trial
Jury selection in the Charles and Linda Bolton tax evasion trial will not begin until at least Tuesday to allow time for the Rev. Kenneth's Fairley trial to wrap up.
Linda Bolton's attorney Lisa M. Ross, who filed a motion last week to be allowed to resign after being on the case less than a month, was ordered by Judge Keith Starrett to stay on as Bolton's attorney.
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