Former county clerk says he complied with court order

JONESBORO -- Former Craighead County Clerk Kade Holliday has provided additional financial information to the county after a judge found him in contempt of court last week, Holliday's attorney said Tuesday, but a county official said there's "quite a bit more to do."

A 15-day jail sentence loomed for Holliday because he failed to provide a "complete accounting" of money he's been accused of stealing from the county, according to court documents.

Circuit Judge Richard Lusby found the former county clerk in contempt of a court order Thursday, but the judge agreed to defer the sentence until Friday on assurance from Holliday's attorney he would comply with the court's directives, Lusby's latest order stated.

Holliday, 31, resigned in July and was charged with 13 counts of theft of property and one count of abuse of office.

Holliday is accused of stealing about $1.6 million from Craighead County.

The county has sued Holliday to recoup the missing money. Lusby is the judge in that case, and Holliday is accused of not providing records to the plaintiffs in a timely manner.

Efforts to reach Holliday on Tuesday were unsuccessful. Records show he's out on bail, which was set at $150,000.

Lusby ordered Holliday "to the best of his ability" provide a complete list of tangible assets, including personal property, valued at $500 or more by the end of the day Friday and all debts exceeding $500 and gifts or investments greater than $500 by the end of the day Tuesday.

Holliday's attorney, Dustin McDaniel, said Tuesday his client provided additional information requested by the court.

"Mr. Holliday understands the severity of the situation and has directed his attorneys to assist the county in expediting their case," McDaniel said. "He has provided supplemental financial information on Friday and today, as ordered. The criminal case has yet to really begin, but the civil matters are moving quickly."

Lusby in the order wrote: "Compliance with this Order shall result in this court purging the contempt order."

A probable-cause affidavit in the criminal case stated Holliday began transferring thousands of dollars from the county's payroll holding account into his personal account in January. Authorities said he continued siphoning the money until June 24. His arrest came a few days later.

Holliday transferred the money from a county bank account to his personal bank accounts on 12 occasions and used it for "his personal benefit," prosecutors said.

Holliday has civil litigation to contend with in addition to his criminal charges.

Craighead County Judge Marvin Day said Tuesday Holliday had been uncooperative before last week's contempt order.

"In that original agreed-upon arrangement, they were supposed to provide us with some details about where this money went and how we can get it back," Day said. "They were not being helpful at all... They were basically stonewalling us."

Holliday's attorneys argued the documents Day and the county have sought were seized by Arkansas State Police and that's why they weren't provided as early as requested.

Since the judge's order of contempt, the county has been "getting a little more information," Day said.

"That's been helpful, but they've got quite a bit more to do," he said.

Last month, Holliday was also sued by Total Healthcare, a food-plan business based in Jonesboro.

The founder and majority owner of Total Healthcare, Rose Hankins, stated in her lawsuit Holliday once "marketed himself" as a skilled accountant and financial adviser "who would be of great benefit to her new and expanding business," so she hired him.

Holliday didn't seek compensation, but agreed to 30% ownership of the business, according to court documents.

After she learned of Holliday's arrest, Hankins checked the business accounts and learned they had been depleted. Holliday diverted company money into his personal accounts, according to the lawsuit.

In May and June, Holliday stole more than $154,000 from the company, attorneys alleged. The plaintiffs are still looking into whether more money was taken.

Holliday's thefts have devastated a once "profitable and thriving business" and it is likely it will cease operating, the lawsuit stated.

As a result of Total Healthcare's financial trouble, it has failed to pay back a loan to Simmons Bank, which in turn sued Total Healthcare, Holliday and Hankins, according to court records.

Holliday's job with the county included submitting payroll reports, which involved factoring in unemployment insurance, income taxes, Social Security, retirement system contributions and health and life insurance.

Holliday embezzled money from the county causing a "deficit to Craighead County for payroll taxes and retirement contributions," according to a probable cause affidavit.

Holliday, a Republican, replaced Nancy Nelms in 2012 as county clerk. He was elected when he was 24 years old.

Day said Holliday was "very smart" and good to his employees.

"I'm sick that this happened," Day said. "We're just working really hard to get this money back."

Upcoming Events