A civil complaint has been filed by Attorney General Lynn Fitch on behalf of the state auditor and the City of Indianola against Indianola Aldermen Ruben Woods, Marvin Elder and Sam Brock, along with their bonding agency, Western Surety Company.
Woods, Elder and Brock all voted yes back in December of 2023 to pay local contractor Spencer Construction $38,900 for work the contractor had completed as part of a Mississippi Home Corporation project. The grant had apparently been administered through South Delta Planning & Development District, but there had been no contract signed that obligated the city to make any payments to Spencer.
The Enterprise-Tocsin reached out to Woods, Elder and Brock for comment but had not received an answer by press time.
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In a statement given to The E-T back in July, Elder placed blame on multiple people, including the mayor, South Delta Planning & Development District and the city’s attorney.
City Attorney Kimberly Merchant advised the board on multiple occasions late last year not to pay the invoices owner Frederick Spencer had sent to the city, due to the fact that the city had no contract with his company.
The state is seeking the original demand of $43,074 to be paid, plus interest and penalties.
Investigators with Auditor Shad White’s office came to Indianola in early 2024 to investigate the matter, and in early July, each of the aldermen were served with demand letters ordering them to pay back their portion of the $38,900, which was $14,358 each. That included
additional interest and penalties.
The most recent complaint was filed last Friday in Hinds County Chancery Court.
“On and after August 3, 2024, each of the Individual Defendants violated Mississippi Code § 7-7-21l(g) and other applicable laws, by unlawfully and unfaithfully failing to deliver public funds without delay to the State Auditor at the seat of State Government,” the complaint reads in part...“The individual defendants were not faithful in the performance of the duties of their office because they voted to expend city funds despite having no contractual or legal obligation to do so in violation of state law. The Individual Defendants defaulted in the performance of the terms and conditions of their statutory duties and violated their oath to be faithful to the city. Indianola and the State were and continue to be damaged as the direct, foreseeable, and proximate result of the breaches of duties owed.”
Woods, Elder and Brock were all covered by a $100,000 bond through Western Surety Co., according to the complaint.
“Western has defaulted in the performance of the terms and conditions of their surety bond and relevant state statutes,” the complaint said, later adding, "The State was and continues to be damaged as the direct, foreseeable and proximate result of Western's breach of contract. Western, as surety of the other defendants is obligated to pay no less than $43,614.00 to the State without delay or condition.”
The state is tacking on a demand to Western Surety for an additional $10,000 in penalties apparently allowable under state statute, as well as $3,504 in interest, bringing the minimum owed to $53,614, according to the complaint.
