NEWS

1st witness called in Fairley trial; 3 charges dropped

Lici Beveridge
Engagement Editor

The government called its first witness late Tuesday afternoon in its case against the Rev. Kenneth Fairley, pastor of Mount Carmel Baptist Church.

Andrew Ellard, a former administrator with Hattiesburg's department of federal and state programs, was called to testify about his knowledge of contracts made with the Fairley-run Pine Belt Community Services, a nonprofit organization that provides services and goods to low-income families.

Ellard testified to the contracts for two houses in question, one at 127 E. Fifth St., the other at 202 South St., involving more than $100,000 in HUD funds.

He said the initial contracts were issued for construction of two new homes but later were amended to rehabilitation of three homes that would be available to qualified low-income applicants for lease-purchase.

The contract again was modified to include only two homes because the cost of rehabilitation would be more than the HUD program allowed. One more amendment changed the homes from purchase to rentals.

An $11,000 Community Development Block Grant item was added for a lead abatement on one of the homes.

One of the last items Ellard testified to was a conversation held with Fairley's co-defendant Artie Fletcher about collecting his portion of the project directly from the city instead of Pine Belt, the lead contractor.

Ellard said he told Fletcher the city could not do that and pointed him to other projects he could bid on directly through his for-profit Interurban Development, at the time located in Picayune.

The conversation was recorded unbeknownst to Ellard, who was provided with a transcript of his conversation with Fletcher once HUD began an investigation into Pine Belt's use of HUD funds on the two homes.

Following the investigation, Fairley was indicted in March on six counts: one count of conspiracy to defraud the U.S. government; two counts of theft of government money; one count of conspiracy to commit money laundering; and two counts of engaging in monetary transactions to criminally derive property.

Three of the charges were dropped over the holiday weekend. U.S. District Judge Keith Starrett on Tuesday told the jurors they will consider only the conspiracy to defraud the U.S. government and two theft of government money charges.

Fletcher was indicted on three counts: conspiracy to defraud the U.S. government; conspiracy to commit money laundering; and engaging in a monetary transaction to criminally derive property.

Fletcher pleaded guilty Friday 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.

In Fletcher's felony information, the U.S. attorney charged that from Dec. 13, 2012, to April 22, 2014, in Forrest County, Fletcher knowingly and willfully failed to report to legal authorities a felony — that a defendant known as "KF" had prepared a false document by forging Fletcher's initials for the purpose of submitting the document to HUD through the City of Hattiesburg.

Fletcher was not present Tuesday at Fairley's trial.

Judge: Fair trial, free speech both protected

Before the jury was seated Tuesday, Starrett held a hearing in response to motions filed by defense attorney Arnold Spencer on Monday night to determine whether the government acted inappropriately by making Fletcher a government informant, which Spencer said would be tantamount to prosecutorial misconduct. If true, Spencer sought dismissal of all charges against his client.

"Artie Fletcher, while acting as a government informant, improperly obtained Defendant Fairley’s confidential, privileged communications and trial strategies, and shared that information with the United States Attorney’s Office," the motion says. "Only on the weekend before trial, after Defendant Fairley’s trial team had shared its trial strategies with CoDefendant Fletcher, did the government disclose evidence that they had withheld wrongly for years, evidence that the AUSAs and the federal agents had been working with Government Informant Fletcher to investigate and entrap Pastor Fairley."

Attached to the motion is a report by FBI Special Agent David Roncska, allegedly documenting Fletcher's involvement.

The motion was overruled after hearing testimony by telephone from Fletcher's attorney, Clarence Roby, and Roncska, denying Fletcher was made an official informant.

"There is no evidence that shows Mr. Fletcher was an agent for the government," Starrett said of his decision.

While on the witness stand, Roncska said the initial investigation began after former Assistant U.S. Attorney for Mississippi Mike Hurst had a conversation with Fletcher about a civil complaint he filed in 2013 against Fairley, alleging the pastor failed to provide money, construction services and consulting for several projects in Hattiesburg agreed to by both parties. Fairley’s side allegedly breached the contract by not making payment to Interurban.

After the hearing, 12 jurors and two alternates were seated. Of the jurors, seven are women and five are men. Six are black, and six are white. The alternates are both black. One is male, the other female.

Jury selection took several hours with 60 candidates brought in from across the U.S. District Court's Southern Mississippi region.

The educational background of the jury pool ranged from a couple with high school diplomas to a few with advanced degrees.

Testimony will continue Wednesday morning at the William M. Colmer Federal Courthouse. Starrett said he expects the trial to last three to four days.

Fletcher pleads guilty; Fairley trial begins Tuesday

The charges

The Rev. Kenneth Fairley was indicted in March on six counts: one count of conspiracy to defraud the U.S. government; two counts of theft of government money; one count of conspiracy to commit money laundering; and two counts of engaging in monetary transactions to criminally derive property.

Three of the charges were dropped over the holiday weekend. U.S. District Judge Keith Starrett on Tuesday told jurors they will consider only the conspiracy to defraud the U.S. government and two theft of government money charges.