On May 2, 2002, Buchanan County experienced heavy showers and thunderstorms throughout the day. In the town of Hurley, Virginia, 4.5 inches of rain fell during the course of a few hours, causing local streams and rivers to swell. Between 2:00pm and 3:30pm, Knox Creek, which ran through the town of Hurley, had overflowed its banks and submerged the town in up to twelve feet of water. Roads were washed out, and emergency personnel were not able to reach the town until 7:00pm that night. Two people were killed, and 98 families (the majority of the town's residents) were left without homes. In addition, 19 county bridges and 102 private bridges were destroyed, blocking access to 235 homes in the area.
The recovery funds, which the county was given permission to award without competitive bidding, were awarded to local contractors and vendors who were later discovered to have paid approximately $545,000 worth of bribes in order to obtain these contracts. Some of the bribes accepted by county officials included all-terrain vehicles, NASCAR tickets, $40,000 worth of coon dogs, and $350,000 in cash.
In June 2004, federal investigators arrested sixteen men on charges of bribery, fraud, and money laundering. The criminal trial began in June 2005 with Assistant U.S. Attorney Thomas Bondurant, Jr. as lead prosecutor. In July 2005, all sixteen men were convicted: six local government officials, nine businessmen, six companies, and one federal FEMA agent. All but one pleaded guilty.
The following businessmen and contractors were convicted of paying bribing public officials to receive contracts and rigging contract bids:
After the corruption was discovered, federal and state government agencies refused to reimburse the county for the misused funds, resulting in a loss of $2.7 million for the county. In 2005, Buchanan County filed a civil suit to recover these funds.
In March 2006, U.S. Attorney John L. Brownlee provided the county with $1,050,544 that had been forfeited by the defendants named in the suit. The civil trial continued, and in June 2008, a federal jury awarded the county another $500,000 from two corporations named in the suit, Vansant Lumber Co. and KJ Stephens and Associates. However, this verdict was overturned by U.S. District Judge James P. Jones in October 2008.
The recovery funds, which the county was given permission to award without competitive bidding, were awarded to local contractors and vendors who were later discovered to have paid approximately $545,000 worth of bribes in order to obtain these contracts. Some of the bribes accepted by county officials included all-terrain vehicles, NASCAR tickets, $40,000 worth of coon dogs, and $350,000 in cash.
In June 2004, federal investigators arrested sixteen men on charges of bribery, fraud, and money laundering. The criminal trial began in June 2005 with Assistant U.S. Attorney Thomas Bondurant, Jr. as lead prosecutor. In July 2005, all sixteen men were convicted: six local government officials, nine businessmen, six companies, and one federal FEMA agent. All but one pleaded guilty.
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In March 2006, U.S. Attorney John L. Brownlee provided the county with $1,050,544 that had been forfeited by the defendants named in the suit. The civil trial continued, and in June 2008, a federal jury awarded the county another $500,000 from two corporations named in the suit, Vansant Lumber Co. and KJ Stephens and Associates. However, this verdict was overturned by U.S. District Judge James P. Jones in October 2008.
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