Two plead in fraud of sheriff's office | Arkansas Blog

Tuesday, May 16, 2017

Two plead in fraud of sheriff's office

Posted By on Tue, May 16, 2017 at 4:56 PM

A former employee of the Pulaski County sheriff and a North Little Rock woman who sold uniforms to the sheriff's office have pleaded guilty to mail fraud in a scheme to steal from the sheriff's office, according to a news release from the U.S. attorney's office.

The former sheriff's employee, Kelvin Hendrix, 48, of Bauxite, and Jennifer Gann, 36, waived indicted and pleaded guilty. They'll be sentenced in October.

The scheme occurred between April 2011 and April 2016. Said the release:

Hendrix, a former quartermaster for the Pulaski County Regional Detention Center who worked for the PCSO for 25 years, and Gann, a former employee at Cruse Uniforms & Equipment, devised a scheme to steal funds allocated by the PCSO for the purchase of uniforms and equipment. The pair then used those stolen funds to purchase firearms and other goods from Cruse for personal use.

As the quartermaster, Hendrix managed the purchase and distribution of uniforms and equipment for all employees working at the jail. All uniforms and equipment for these employees are purchased from Cruse. Gann was the inside sales manager for Cruse and worked for Cruse for 16 years.

Detention Center employees received a uniform and equipment monetary allowance, to be used at Cruse. As part of the scheme, Hendrix provided Gann a list of employees who had not used their entire allowance, and Gann created false purchase invoices for items purportedly purchased by those employees. Based on those false purchase orders, the PCSO remitted payment (via the United States Postal Service) to Cruse. Gann would then produce another invoice showing the items as returned, and credit the value of the items to Hendrix—rather than the PCSO—in the form of a store credit.

As an example, on December 2, 2015, Gann created a purchase invoice with information provided by Hendrix, for the purchase of 42 PCSO tee shirts. The total charged to PCSO in connection with this purchase invoice was $526.47. Gann then created a return of merchandise invoice documenting the return of the 42 shirts, but issued $526.47 in store credit to Hendrix personally. That same day Hendrix purchased two handguns—a Glock Model 43 and a used Glock Model 30—for $553.72, primarily paid for with the store credit.

Hendrix purchased more than 40 firearms in this manner. Hendrix and Gann also admitted in their plea agreements that, throughout the entirety of the scheme, PCSO’s loss amount is between $40,000 and $95,000. The issue of the exact amount of restitution will be determined at sentencing.

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