Wendy Askins and Larry Webb's day in court to face charges including theft, bank fraud and money laundering in connection with their tenure as Upper Cumberland Development District (UCDD) officials has been delayed for a fifth time.
The trial was originally scheduled for May 20, but a motion for a continuance filed by Askins attorneys was granted. Askins reportedly asked for the delay because her daughter was getting married in May. Webb joined Askins in making the request, and the trial was reset for June 3. Attorneys for Askins then filed a motion seeking another continuance because they were scheduled to be involved in another federal court jury trial on June 3, and a new trial date was set for July 15.
Another continuance set the case for Dec. 2, but it has now been reset again, this time for July 14, 2015.
Webb's attorneys filed the latest motion to continue, saying that due to the complexity of the case and a busy trial schedule, they need more time to prepare a defense.
The new motion reads: “As the court is aware, the allegations in this case involve fraud transactions that" are complex. Similarly, the discovery materials have been voluminous. Due to the busy trial schedule of counsel for Mr. Webb and deadlines for filing briefs in the Sixth Circuit Court of Appeals and the Tennessee Court of Criminal Appeals, counsel submits that additional time is needed to prepare for this case. For example, between now and the trial date, counsel for Mr. Webb are scheduled to be in trial for an attempted murder case in Davidson County, and represent the victim in a rape case headed to trial as well. In addition, counsel must file no less than four appellate briefs before the trial date.”
A federal grand jury returned indictments in September, 2013 on Askins, former executive director of the UCDD, and Larry Webb, her former assistant director. Webb served as mayor of DeKalb County for 10 years before resigning to take the UCDD position.
The two were charged in a 16-count indictment with six counts of theft and conversion of government property in excess of $1,000; four counts of bank fraud; three counts of money laundering; and one count of concealing a material fact, as well as conspiring to commit various other federal offenses. The charges stem from a federal investigation into the UCDD “Living the Dream” home, a project which was designed to be a haven for needy seniors.
The indictments alleged that Askins, Webb and others “conspired and perpetrated a scheme to convert over $670,000 of government funds intended for the Upper Cumberland Development District (UCDD), the Cumberland Regional Development Corporation (CRDC), and Cumberland Area Investment Corporation (CAIC) to the use of Living the Dream, which was owned by Askins and Webb.”
The Cumberland Regional Development Corporation was formed under the UCDD umbrella to help create affordable housing in the Upper Cumberland area in 1996.
The CRDC was partially funded by grants from the United States Department of Housing and Urban Development, as well as federal and state grants. It was overseen by a separate board of directors.
The CAIC was chartered under the UCDD umbrella in 1982 to administer a federal grant program involving loans to small businesses in Upper Cumberland. The agency’s stated goal was to help expand and retain jobs in the area.
The agency was also governed by a board of directors separate from the UCDD board. It was partially funded by federal grants as well, including grants from the United States Department of Commerce.
The indictment further alleges that “Askins and Webb incorporated LTD as either a non-profit or profit entity, or caused funds from UCDD and CRDC to be transferred to LTD without seeking the approval of the UCDD or CRDC Board of Directors.
Askins and Webb were placed on administrative leave pending an internal investigation in February 2012, and both resigned two months later.
The case was investigated by agents of the U.S. Department of Health and Human Services, Office of the Inspector General, the U.S. Department of Commerce, Office of Inspector General, the IRS-Criminal Investigations and the FBI, with assistance from the U.S. Department of Housing and Urban Development-Office of Inspector General. The United States is represented by Assistant U.S. Attorneys Darryl Stewart and Scarlett Singleton.
If convicted, Askins could get up to 225 years in prison and $6.75 million in fines, as well as forfeiture of property derived from, or used in, the bank fraud and money laundering offenses charged. Webb faces up to 225 years in prison and $6.5 million in fines, as well as forfeiture of property derived from, or used in, the bank fraud and money laundering offenses charged.
