With a criminal inquiry ongoing into spending by the former head of the Arkansas agency that regulates fire extinguishers and fire sprinkler systems, the attorney general's office filed suit against the woman Thursday.
The lawsuit accuses 47-year-old Catherine Rushing Gray of England of misappropriating between $15,426 and $20,025 over a two-year period as executive director of the Arkansas Fire Protection Licensing Board. A phone number for Gray could not be found Thursday.
"Public officials are entrusted with spending taxpayer money for the benefit of the State, but in this instance this individual spent thousands of dollars for her own benefit," Attorney General Dustin McDaniel said in a news release. "We hope the court holds her accountable for her illegal actions and that she is required to reimburse the state for this blatant misuse of taxpayer funds."
Gray resigned as board director in April, just as board trustees were preparing to review an audit report that found questionable charges on her state credit card.
She'd headed the board for almost four years, with duties that included serving as chief fiscal officer, and earned $34,681 a year. The audit findings were also delivered to the Arkansas State Police for a criminal investigation that is ongoing.
If found guilty of violating the state Fiscal Management Responsibility Act and public finance laws, Gray could be fined up to $1,000 per violation plus be forced to pay restitution and damages. She is also accused of fraud and conversion of public funds in the lawsuit.
Gray has admitted to some improper spending using the state purchasing card, known as a P-card, the lawsuit before Pulaski County Circuit Judge Mackie Pierce states.
"The defendant admitted to using the P-Card for personal gain with respect to certain transactions, but she has reimbursed the state for only $3,358.47 of the improper purchases," the filing states.
According to the 11-page lawsuit filed by Assistant Attorney General Charles Lyford, the audit discovered $8,519 in improper charges between March 2012 and March 2014, including $1,639 spent through Facebook; $940 for gift cards; $641 for electric bills in Gray's name; $537 for nontravel-related meals; $393 for prescription medication; $321 for gasoline unrelated to state business; $150 for car repairs on her daughter's vehicle; and unspecified purchases of alcohol, cigarettes, dog food, pet supplies, movies and groceries.
Another $6,907 in purchases were not properly documented, and she received another $4,599 in reimbursement that was inadequately documented, the suit states. According to the lawsuit, $15,426 of the $40,431 in purchases she made with the card were found to be dubious by state auditors.
The suit also notes that about $8,500 in rent and phone bills for the board's Cantrell Road offices was also paid late in violation of state law. Also, the agency's cash savings declined every year she was director, falling 40 percent over her tenure, from $254,192 to $152,564. Expenses also exceeded revenue for three years of her leadership, with expenses at $133,299 to revenue of $113,496 when Gray quit, according to the lawsuit.
The fire board was created in 1977 by the Legislature to monitor the servicing and installation of portable fire extinguishers, fixed fire-suppression systems and fire sprinkler systems, and to register and license businesses and people who provide such services, according to the board's website. The board aims to minimize personal injury and property damage, which might result from improperly installed or improperly maintained fire-extinguishing systems.
Metro on 09/05/2014