Feds say community defrauded of disaster relief

ABINGDON, Va. – Six officials accepted NASCAR tickets, clothes, a hunting dog and other bribes totaling $545,000 to steer disaster relief money to contractors, authorities charged Thursday.

The accused in a 43-count federal indictment include former Buchanan County Board of Supervisors chairman Stuart Ray Blankenship, who faces up to 60 years in prison and a $1 million fine.

At a news conference outside federal court, U.S. Attorney John L. Brownlee scolded the indicted officials, saying they stole from flood-ravaged families “in their time of great need.”

“Now, we learn that the very individuals who were elected to serve and protect the people were, in fact, stealing from them,” Brownlee said. “This type of public corruption will never be tolerated.”

Blankenship did not yet have an attorney and he left an initial appearance in court Thursday without commenting. A telephone call to his home was not immediately returned.

Nine businessmen and six local contracting companies were also named in the indictment. Charges include fraud, money laundering, witness tampering and perjury.

The allegations stem from $7.6 million in federal and state disaster aid awarded in 2002 for cleanup and repairs after flood waters submerged portions of the town of Hurley in southwestern Virginia. Two people were killed, bridges were swept away and an estimated $30 million in damage was incurred.

The indictment alleges officials directed the money to local contractors for gifts including stereos, televisions, men’s and women’s clothing, firearms, University of Tennessee athletic tickets and personal services.

The County Board of Supervisors was in charge of awarding contracts for bridge repair, demolition and other operations, but prosecutors said that almost immediately some officials started working secretly with associates to fix the contracts at a high price.

Blankenship began accepting trained hunting dogs as bribes in exchange for the overpriced contracts, Brownlee said. “A good coon dog can go for more than $15,000,” he said.