EMC's Brown free on own recognizance
by Brandon Wilson
bwilson@mdjonline.com
January 08, 2011 12:00 AM | 3088 views | 20 20 comments | 13 13 recommendations | email to a friend | print
MARIETTA - Cobb EMC President and CEO Dwight Brown apparently hasn't had to fork over any money thus far regarding his indictment and book-in to the county jail.

He was released from Cobb Jail on Thursday night on his own recognizance, per Superior Court Judge George Kreeger. And a spokeswoman for the electric cooperative confirmed Friday that the utility will be paying his legal bills.

Meantime, the case has been randomly assigned to Superior Court Judge Robert Flournoy. Flournoy was appointed to the bench by one of Brown's attorneys, former Gov. Roy Barnes, in July 2000.

Asked if that could present an issue, District Attorney Pat Head said, "I don't know if it's a problem. Most of the judges are fair irrespective of who appoints them."

If Flournoy recuses himself, a judge from outside the county will be brought in, Head said. The defense could also request a change of venue.

Assistant District Attorney John Butters, and a special assistant district attorney, John Floyd, are prosecuting the case. Floyd is also employed at the Atlanta law firm of Bondurant, Mixson & Elmore and has special expertise in RICO statutes, Head said.

Barnes and Craig Gillen, of Gillen, Withers & Lake, which has offices in Atlanta and Savannah, are defending Brown, though Cobb EMC will pay those bills.

"Under the bylaws, the company is obligated to indemnify senior management for legal fees, and is doing so," EMC spokeswoman Carol Cookerly said.

Brown was off from work on Friday.

"He had a previously arranged engagement with his family and is with them," she said.

Brown surrendered to Cobb Jail deputies at 6:15 p.m. Thursday, hours after a county grand jury indicted him on 31 counts of criminal wrongdoing. After completing the book-in process, Brown walked out of the jail at 8:52 p.m. on his own recognizance, according to jail documents.

Brown is charged with 16 counts of theft by taking, three counts of racketeering, ten counts of making false statements, and one count each of conspiracy to defraud Cobb Government and conspiracy to defraud the Cobb County School District, both of which are EMC members.

The indictment returned Thursday afternoon alleges that Brown used Cobb Electric Membership Corporation as a piggybank to fund various operations and activities of Cobb Energy without approval by the cooperative's members, as required in EMC's bylaws. Without revenues from these various business dealings by Cobb Energy, funded by the co-op's members, Cobb Energy could not have paid Brown millions of dollars in salary and compensations, dividends in preferred stock, and forgiven a $3 million loan Brown used to purchase the stock, according to the indictment.

"Moreover, at least through 2007, the accused took steps to conceal and cover up the thefts and other crimes charged in this indictment," the document states.

Brown's defense attorneys say the entire indictment is "without basis," and they "intend to fight every inch of the way in this case."

News Editor Kim Isaza contributed to this report
Comments
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Dan Davis
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January 11, 2011
Please be aware that, last spring, the Board also approved a bylaw amendment creating the position of "Emeritus Director." When Dwight Brown steps down, a quick appointment to Emeritus Director guarantees lifetime continuation of indemnification:

"In addition, the Cooperative shall, to the maximum extent permitted by law, advance expenses

to, and indemnify, each person who is, or was, an Emeritus director, against all expenses, including attorney’s fees, judgments, fines and amounts paid in settlement, actually and reasonably incurred by such person in connection with any threatened, pending or completed action or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that such person is, or was, an Emeritus director."

That sucking sound you hear isn't just coming from Dwight Brown's intracranial space.
j. king
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January 11, 2011
SO MUCH CORRUPTION! Brown, EMC Board, attorneys, political friends, money paid under the table. It all runs very deep. In the end, (and I hope I'm wrong) is that he'll walk away unscathed, Roy Barnes with his pockets lined with cash. Others financially well compensated for life and everyone's utility bills increased to cover the extra charges.
CYCLOP
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January 11, 2011
Someone need to asked the GA. PUBLIC SERVICE COMMISSION where they were at when this indited CEO fox was robbing the hen house.
Not Our Deby
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January 10, 2011
To Just Clarifying-Did Cobb EMC purchase Gas South or did Cobb Energy? Big difference!

Thanks for the other clarification.
just clarifying
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January 09, 2011
Cobb Energy has sold both Alamo Pest Control and Interlink Control. Alamo is also still in business. Cobb EMC purchased Gas South from Georgia Power.
Not Our Debt
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January 09, 2011
Old Vet-Cobb Energy owned a pest control company that worked in this area with the office on White Cir. Ct. That business has closed. Cobb Energy owned or worked with Interlink Control, which is still in business. Scanna was replaced with Gas South. Don't know whether Cobb Energy owns Gas South, but their sales crew & customer service was & may still be located at the ProCore call center. Calls for these businesses came through the ProCore Call Center, which is still located at the corner of Bells Ferry Rd. & North Cobb Pkwy. All the Customer service agents for starting & stopping EMC service and billing problems were handled by ProCore employees at this call center.

Cobb Energy at the ProCore call center did handle calls for over 30 other utilities across the south. Cobb Energy did not own these businesses, just handled their customer service calls.

There was also a tree cutting business and surge protectors were sold by Cobb Energy at the ProCore Call Center.

Employees at the ProCore Call Center were employeed by ProCore NOT Cobb EMC, which was a way for Brown & the EMC Board to pay lower salaries and offer less benefits. ProCore employees, who worked on the Cobb EMC account, originally answered the phone saying "Cobb EMC". Then in June 2007, these employees were instructed to start anwering the phone saying "Cobb Energy."
Ludicrous
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January 09, 2011
All of Cobb County's Tax Funded Institutions are laced with systemic government corruption. How will the Cobb Machine cover-up this EMC scam like they have covered-up the Wellstar-Kennesatone Hosptial Authority tax funded institutional fraud and corruption scam? Can I get a AMAN?
Old Vet
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January 08, 2011
Not Our Debt (below) nailed the situation perfectly. MDJ - Will you please reprint the names and addresses of the businesses owned by Cobb Energy? Unless I'm mistaken, some were even in Texas - pest control or something along that line.
emc customer
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January 08, 2011
So our EMC has to pay for the defense of someone indicated for stealing from the EMC????

Complete BS.

gilda boyz
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January 08, 2011
They all have been given a license to steal. There is nothing we can do about it. Thats why they keep getting richer.
Watcher...
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January 08, 2011
Perhaps Cobb EMC should be sold to Georgia Power!
Connie Mack Jr
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January 08, 2011
Brown's Goose is cooked if he goes to trial! This is not the time nor the political era for super little rich [ mini] Goldman Sachs want to be's to be before a mob of foreclose and out of work anger jury members!
EMC Monopoly Member
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January 08, 2011
Ex Candidate for Governor, Barrister Roy Barnes has been bought by Brown, paid for by EMC members, to make outrageous statements on TV ? What a joker to mention "business" environment in Cobb vs a Co-op leader illegally taking millions from it's membership. Guess Brown's defense is his "bad board" made him take all of our money. Can't wait to see Chuck Clay "spin" the truth along with Barnes.
More Needed
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January 08, 2011
Surely more indictments are coming. It is so obvious to a reasonable person that fraud was being committed on a grand scale. Board members and anyone else who profited should be rounded up with Brown.

Where's the Cobb EMC attorney who approved of the supposed illegal dealings. Hopefully he'll be in the mix. Someone needs to push for an investigation with the state bar.

WE WAMT OUR MONEY BACK!!!!!
anonymous
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January 08, 2011
Prosecutorial heavy handedness is rampant in this country (squashing people with the full weight of the resources of the state is great fun for the politically ambitious class). Making the charge is a great way for a district attorney to get his name in the light. In the Brown case, I wish I could say that I felt Mr. Head was merely seeking out justice.
Not Our Debt
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January 08, 2011
Since Brown was alledgedly committing his crimes using a company, that being COBB ENERGY, which is NOT owned by Cobb EMC & the co-op members, Cobb EMC and the co-op members should NOT be "obligated to indemnify senior management for legal fees."

If you apply the principle used by the Cobb County School System to this instance, which is the school system did not have to pay all the legal fees for Dr. Crooks a few months ago when he had a "slip in Roberts Rules of Order", then I definitely do not understand why the Cobb EMC co-op members are "obligated" to pay for Brown's legal fees when his "alledged crimes" occurred through Cobb Energy & ALL the little companies against Cobb EMC.
Nice Move
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January 08, 2011
Roy & Dwight- That was a pretty slick move, telling the media that you would turn yourself in on Friday morning and you actually turned yourself in on Thursday night. Slick!
Pat H
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January 08, 2011
Cobb EMC hires a security guard to sit in the front office to guard Brown. Perhaps once he goes to jail, they can fire the guard because the EMC customers are paying for this.

I am pleased about this indictment, long overdue. My electric bills this summer were budget killers.
EMC member
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January 08, 2011
You really have to just laugh at the insanity of this. Dwight Brown is accused of theft and the entity from which he is accused of theft is paying his legal fees! NOW the board decides to adhere to the bylaws! When is the annual meeting going to happen so we can get rid of these idiots?
Enough is enough
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January 08, 2011
Judge Flournoy should recused himself immediately to avoid damage to his reputation. This deal apparently runs deep in County politics and payoffs.

Once again, Roy Barnes misses the point. Cobb County will only benefit from publicity that shows that it will deal with corruption. Remember that only "special people" were allowed to buy shares in Cobb Energy. It wasn't traded on the open market.
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