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Former GC Public Works Supervisor Pleads Guilty to Money Laundering

From staff reports

United States Attorney John L. Brownlee announced yesterday (Oct. 9) that Randall Eugene Hurt, 47, of Gate City, pleaded guilty in United States District Court to one count of money laundering in relation to his misuse of his authority while serving as the Public Works Director for the Town of Gate City.

According to evidence presented by Assistant United States Attorney Zachary T. Lee, Hurt had been an employee of the town for 25 years and assumed the position of Public Works Director in the summer of 2005.

Shortly thereafter, Hurt used his authority as Public Works Director to purchase large amounts of copper pipe in Kingsport, Tenn. with town funds. He then took the copper pipe to several recycling companies and sold the pipe without the authority of the town and kept the profits for himself.

Between July 12, 2005 and Jan. 30, 2007, federal authorities say Hurt misappropriated $139,962.89 in town funds.

He faces a maximum punishment of 20 years imprisonment and a potential fine of $500,000. Sentencing has been scheduled for Jan. 7, 2008, in the United States District Court in Abingdon. Pursuant to his plea agreement, Hurt has agreed to pay restitution in the amount of $139,962.89 to the Town of Gate City and their insurer.

The investigation of the case was conducted by the Bristol Office of Internal Revenue Service - Criminal Investigation Division and the Virginia State Police.

United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.

 

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