Former Prichard city employees James Blackman and Kim Wright Green have been charged with corruption in local government in Mobile County, according to U.S. Attorney Richard W. Moore.
A federal grand jury in Mobile handed down an 18-count indictment against Blackman, charging him with theft concerning programs receiving federal funds, wire fraud, and money laundering.
Blackman's arraignment in federal district court in Mobile is scheduled for next week.
According to the indictment, from around November 2016 to about Jan. 16, 2018, Blackman was the chief of staff and administrative assistant to the mayor of Prichard.
The indictment charges that from around November 2016 to about January 2018, Blackman used his position to enrich himself by diverting to his personal benefit approximately $200,000 in money and property belonging to the city of Prichard.
According to the indictment, Blackman enriched himself by submitting false invoices to the city; by taking and depositing for himself checks payable to the city, and checks payable to other entities in the care, custody and control of the city; and by using his position with the city to divert ownership of real estate from the city for his personal benefit.
The indictment also charges that Blackman laundered money totaling $39,200.36 from a bank account that he controlled to a title company to facilitate the purchase of real estate.
The charges against Green stem from her time as city clear in Creola. Court records show that she has agreed to plead guilty to three counts on Friday. Prosecutors have agreed to recommend leniency in sentencing.
Green faces similar charges in state court. A spokesman for the Mobile County District Attorney's Office said the federal charges will not impact the state case. James Byrd, an attorney who represents Green, did not immediately return a phone cal seeking comment.
Prosecutors contend Green embezzled $241,581 from the city of Creola from January 2013 until she left her position in February 2017.
Prosecutors further allege that from about March 2017 to November 2019, when Green was the Prichard city clerk, she embezzled money from the City that city, resulting in a financial loss of approximately $158,449.
Moreover, the criminal information alleges that Green filed a false tax return that stated that her adjusted gross income was $57,341 for the calendar year 2015, whereas, as Green then and there knew, her actual adjusted gross income allegedly exceeded $57,341 for that year, during which she embezzled more than $56,000 from the City of Creola and knowingly failed to report her criminal proceeds as income on her tax return.
The FBI and the IRS Criminal Investigation division are investigating the federal cases with assistance from the Mobile County District Attorney’s Office.