McAlester News-Capital, McAlester, OK

Local News

February 23, 2008

Three landfill employees charged with embezzlement

Over a five-month period, three city employees sold a total of $4,881.45 worth of scrap metal which belonged to the city of McAlester and then kept the money, according to allegations in documents obtained by the McAlester News-Capital.

The three, who were employed at the McAlester Municipal Landfill, have each been charged in Pittsburg County District Court with embezzlement.

Part of the scheme included having inmate workers — assigned to work at the landfill from the Oklahoma Department of Corrections — strip wire from the copper dumped at the site, according to allegations in court documents.

Inmate workers would also give some of the city employees tips as to when a load of scrap metal from the DOC might be headed to the landfill, the documents allege.

The three city employees charged in the case are accused of keeping different amounts of money after selling scrap metal from the landfill.

James D. Bryant, 50, is accused of pocketing the largest sum of money. He’s charged with appropriating city money to his own use by selling loads of scrap metal from the city landfill to Scrap Corp, in Krebs.

“Bryant had eight receipts from since November 2007 with an amount of $2,599.96,” McAlester Police Det. Frankie McClendon said in a probable cause affidavit.

Everett Phifer, 66, is accused of pocketing well over $1,000 after making two trips to sell scrap metal from the city landfill to Scrap Corp.

“Phifer had two receipts from October/November of 2007 in the amount of $1,326.67,” according to allegations in the probable cause affidavit.

Richard Carnahan is accused of getting nearly $1,000 by selling scrap metal which belonged to the city of McAlester.

“Carnahan had four receipts from September 2007 in the amount of $994.82,” the affidavit alleges.

McClendon said in the affidavit that receipts were available only back to September.

The alleged scheme began to unravel after Department of Corrections Internal Affairs Investigator Randy Knight started an investigation which involved state prison inmates who have been assigned to work at the landfill.

Knight had obtained information from inmate workers at the Jackie Brannon Correctional Center that some city employees at the landfill might be selling property for personal benefit, according to the affidavit.

“They had two inmates who had been assigned to work at the landfill,” McAlester Police Det. Capt. Don Hass said when asked about the matter. “A city employee would pick them up.”

Inmates at the landfill “would often strip wires from the copper,” the affidavit states.

One of the employees charged told investigators “he heard the inmates talking about a large quantity of copper coming to the landfill.”

As part of the investigation, McClendon and Knight interviewed a DOC inmate on Feb. 5, according to the affidavit.

The inmate had allegedly been paid by an employee at the landfill for his part in the scheme, according to allegations in court documents. The payment had allegedly been made at the landfill.

Investigators were told the inmate had an agreement with other inmates concerning the sale of metal received at the landfill from the DOC, according to allegations in the document.

Two large loads of metal were brought to the landfill in early January, the affidavit states. The inmate said he had received a payment of either $364 or $366 from a city employee — but other employees never paid him any money, according to the affidavit.

He alleged that city employees also bought him tobacco and food, the affidavit states.

DOC inmates are no longer working at the city landfill, Hass said.

City manager Mark Roath issued a statement on Friday saying three city employees have been terminated, although he would not identify them by name.

Contact James Beaty at jbeaty@mcalesternews.com.

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Three landfill employees charged with embezzlement
by By James Beaty , , Sat Feb 23, 2008, 03:20 PM CST
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