By Jon Gillooly
Marietta Daily Journal Staff Writer
SMYRNA - A May 19 trial date is set in Oxford, Miss., for Robert Moultrie, founder and chairman of the Smyrna-based Facility Group. He and two other Facility executives were indicted on federal felony charges related to a failed beef processing plant in Mississippi.
Moultrie, 67, and two Facility Group executives appeared before a U.S. Magistrate judge Tuesday in Oxford for their initial arraignments and were released on bond.
According to the U.S. Department of Justice, a federal grand jury returned a 16-count indictment against Moultrie, Facility Group COO Nixon Cawood and Charles Morehead, a Facility Group vice president, alleging "a conspiracy to corruptly influence and reward a public official" as well as defraud numerous individuals and the state in connection with an economic development project known as Mississippi Beef Processors that was partially funded by Mississippi taxpayers.
The case is in U.S. District Court for the Northern District of Mississippi.
Facility Group spokesman Flip Spiceland defended Moultrie.
"Robert's doing well. He's left the country for some vacation. Everybody's that confident," Spiceland said.
Spiceland said the court rules in Mississippi restrict him from commenting on the case prior to the trial. However, "We have every confidence our people did nothing wrong. Right now, it's still business as usual at Facility Group. Our guys are completely innocent and we're going to fight this vigorously," he said.
At issue is how Facility Group was awarded a contract to manage the completion of the beef plant in Yalobusha County, which is located about an hour south of Memphis, Tenn., according to the indictment.
Facility Group entered into several million-dollar contracts with the state of Mississippi and Community Bank in summer 2003 to manage the completion and design of the beef plant, the indictment states. According to the indictment, Moultrie sent out invitations for a July 23, 2003, fundraiser at his Smyrna residence for "a public official."
Then-Mississippi Gov. Ronnie Musgrove, who was running for a second term, had a fundraiser at Moultrie's house on July 23, 2003, said Musgrove spokeswoman Amanda Crumley.
Musgrove, who served as governor from 2000 to 2004, is now a Democratic candidate for U.S. Senate.
According to the indictment, Moultrie allegedly instructed his employees invited to the fundraiser to issue $1,000 personal checks to "the public official's campaign," telling them they would be reimbursed. Moultrie then paid back his employees by allegedly making it appear to be a legitimate bonus to the employee's salary, the indictment charges.
George Sewell, general counsel for Facility Group, said he could not comment on the specifics of the case for fear of risking a contempt of court charge.
Facility Group attempted to recoup the campaign money from August 2003 to March 2004 with false labor billings to the beef plant's board, the indictment charges.
According to the indictment, Moultrie issued a $20,000 check on August 13, 2003 and a $25,000 check in September 30, 2003 to "the public official" through Facility Group's Political Action Committee.
Crumley defended the former governor.
"Ronnie Musgrove had nothing to do with the awarding of any of the contracts related to the beef processing plant and at no time did anyone try to influence him regarding the awarding of such contracts. If anyone defrauded the taxpayers of the state of Mississippi, they should be prosecuted to the fullest extent of the law," she said.
The Associated Press reports that the plant was open only a short while in 2004 before it failed, leaving 400 people out of work. The state was stuck with $55 million in state backed loans for the 140,000-square-foot plant.
The former owner and operator of the failed plant, Richard Hall, Jr., has been sentenced to eight years in federal prison after pleading guilty on Jan. 25, 2006, to three counts of mail fraud, one count of money laundering and one count of fraud against the state in connection with the beef plant, The Oxford Eagle reports.
Moultrie founded the Facility Group in 1986. The Smyrna company is a professional services organization that offers facility planning, program management, architecture, engineering and construction management services, with regional offices throughout the U.S. and abroad.
The Facility Group is the project manager for the Cobb School District's Special Purpose Local Option Sales Tax I and SPLOST II projects. The company is expected to be paid $12.8 million for managing the Cobb School District's SPLOST II program, according to school spokesman Jay Dillon.
Moultrie served as chairman of the Cobb Chamber of Commerce in 2002 and is currently a member of the Chamber's exclusive chairman's club. He is known for his community service and has served on the Facilities Advisory Committee for the Board of Regents of the University System of Georgia, the Metropolitan North Georgia Water Planning District Governing Board, the Walker School Board of Trustees, the Board of Advisors for the Georgian Club and the Georgia Board of Industry, Trade and Tourism.
He and his wife, Cheryl Moultrie, were in the top three campaign contributors for the first capital campaign for the Chattahoochee Technical College Foundation. He is also well known for contributing to the campaigns of elected officials, such as Cobb school board Vice Chairman Rev. Dr. John Crooks.
State Rep. Earl Ehrhart (R-Powder Springs), an executive with Facility Group, said he is not involved in the Mississippi investigation.
"The Facility Group and Robert Moultrie will be exonerated," Ehrhart said.
Robert and Cheryl Moultrie are in London celebrating Mrs. Moultrie's birthday.
jgillooly@mdjonline.com
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Posted Comments
Ok - so we have an indicted project management company that has been heavily involved in SPLOST I and II and made campaign contributions to a Cobb County School Board Vice Chairman. Now the CCSD is pushing hard for SPLOST III and I am sure Facility Group is neck deep in that one too. ARE THERE ANY PLANS TO AUDIT WHAT FACILITY GROUP HAS DONE OR IS DOING WITH SPLOST? Has Cobb County been falsely billed? Has any questionable funding passed between Facility Group and any of our officials? We are talking about a lot of money here folks and something is starting to smell funny to me. Dirty players do not play dirty just once.
what kind of money mad people are we dealing with
Now this is all making sense. This group is up to their necks in SPLOST III. I guarantee there were kick backs and money laundering going on with SPLOST I and II. And definately will be for SPLOST III. Now it makes sense why the board and administration wants to hold a special election and hurry up before anyone catches on. How many public officials have been "bought" by this facility committee. I urge the MDJ to do a through investigation into this group and their involement with SPLOST III before any of us go to the polls.
I couldn't agree more with "missing something". These people didn't just throw money toward causes. They have been caught on record trying to get back "seed money" they used in their scheme. And every dollar they "donated" was also seed for something else, its in the article! The MDJ should be investigating on this one, the Cobb County School Board certainly WILL NOT! WHY WOULD THEY!THINK ABOUT IT! This story is bigger than it looks from the outside. Much much bigger.
I promise you that you are dealing with a good company with a lot of good people. I work there and I have worked on several Cobb County projects. We truely take our jobs seriously, care about our work, and care about our clients. Mr. Moultrie is truely a good man and has done a lot for this comunity as well as for Paulding County too...Please remember, 3 people were charged...not found guilty. and we have over 400 people that work for Facility Group...please let our guys have their day in court
Ever hear of innocent until proven guilty? This case probably has more to do with smearing Ronnie Musgrove so that the GOP can keep Trent Lott's senate seat than with anything these individuals did--it's the Siegelman case all over again.
i would also agree with you T. think, 22 years in bussiness and the only charge of it's kind hits on a project wrapped up in political undertones. Just think mississippi called TFG to help, not the other way around. Give the men their day in court. You only plead guilty, if your guilty. At least that's how i see it. Robert we're behind you all the way.
My problem is... how can FG be awarded the PM contract for the Paulding County courthouse, and then awarded the contract for Design and Construction. Very unethical!
C, can you explain the Glynn County Charter School deal and the Paulding County and the chatham County Jail, which was awarded to a firm, then after meeting with the Sheriff, FG got the contract? just doesnt smell right
To quote you "it doesn't smell right" to you, cause you didn't get the work or the job....it does smell right to many, many satisfied clients and customers over 20 years of doing business - both in the private and public sectors. If you're blogging, you must need a real job!
No, Cobb, it really does not have all that much to do with Musgrove, as much as you want it to be. This Beef Plant Deal is something in which I and all my fellow Mississippians were shafted for $55 Million. It basically happened because our local legislator, who was in charge of Ways & Means and is now the Speaker of the House, and all his cohorts (and our Commissioner of Agriculture, who incidentally is a REPUBLICAN!), decided they wanted a plant to process Cull Cattle. Louisiana wanted this, but USDA advised them it was a bad idea. Then, when we had a chance for it, Mississippi State University did a Study on it, which showed it to be a disaster. But our Legislature, God Bless 'em, decided they didn't care what them "pointy-headed Perfessers" thought. So another of their cohorts "enhanced" the study until it came out OK. Anyway, we were sold a bill of goods, and Musgrove got some money for the War Chest.
What about their involvement with Chattachoochee Technical College. Cheryl Moultrie was president of the foundation there until recently. They donated 100k to the foundation and got a state contract to do the planning for Chattahoochee Technicall College. They also got the contract award to design and build their new 20 Million Dollar facilities. Ask the former president what happened under his watch.