(Source: USAO, MS) Hattiesburg, Miss – Kenneth Fairley, 62, of Hattiesburg, and Artie Fletcher, 55, of Picayune, have been charged in a federal indictment with a scheme to defraud the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Gregory K. Davis, IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, HUD Special Agent in Charge Nadine Gurley, Federal Bureau of Investigation Special Agent in Charge Donald Always and Mississippi State Auditor Stacey Pickering.

Fairley and Fletcher are charged with devising a scheme to defraud HUD in connection with a government contract issued to the City of Hattiesburg for the rehabilitation of three residential properties located within the city limits. The project was supported by federal funding and was executed through sub-contracted work to be completed by Pinebelt Community Services, a local non-profit operated by Fairley. The indictment alleges that Fairley conspired with Fletcher to fraudulently perform the work for a lesser amount than represented on the HUD contract, with the difference in the bid and actual costs being transferred to Fairley, through Fletcher, for purposes not intended by the government contract.

The indictment charges Fairley with one count of conspiracy to defraud the United States, two counts of theft of government money, one count of conspiracy to commit money laundering, and two counts of engaging in monetary transactions in property derived from unlawful activity.

Fletcher is charged with one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering, and one count of engaging in a monetary transaction in property derived from unlawful activity...