COVINGTON, Ga. — A Newton County grand jury has indicted a former Salvation Army employee on racketeering and other charges related to the alleged 2022 theft of thousands in federal COVID relief funds administered by Newton County government.
Christal Deshai Guthrie, 44, was indicted on the charges that accuse her of using fake landlords to fraudulently receive more than $200,000 in American Rescue Plan Act (ARPA) funding planned for use by area residents harmed economically during the COVID pandemic. The funds were intended to help area residents pay for rent, mortgage and utilities.
She is set to be arraigned on the charges March 16 in Newton County Superior Court.
Guthrie has filed a demand for a speedy trial, meaning that her case must be tried by the end of the April term — in early July — of Superior Court, said Newton County District Attorney Randy McGinley.
Five others have been arrested on charges related to the case, including Dominique Sally Lewis, Moses Williams, Jermaine Newsome, Dawn Dewalt and Canute Altiman Ashmead. The charges included Conspiracy to Commit Theft by Deception, and Identify Fraud, McGinley said.
However, McGinley said the suspects have not yet been indicted by a grand jury, and the investigation is “still very active and ongoing.”
Guthrie was initially arrested in October 2022 and charged with one count of Theft by Deception and 11 counts of False Statements/Fraudulent Documents in connection with an allegation she forged or manipulated qualifying documents to gain personal use of the money.
About $529,000 of $700,000 had been given to the Salvation Army for distribution before the suspected fraud was detected. The county told the agency to halt distributions and has since been reimbursed for the the misappropriated funds.
The new 72-count indictment includes two counts of violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act, two counts of Forgery in the First Degree, one count of Theft by Taking, and 67 counts of Making a False Statement.
It alleges that from April 1, 2022, through Aug. 18, 2022, Guthrie “engaged in a pattern of racketeering activity involving the knowing and willful use of fraudulent applications to The Salvation Army for financial assistance in order to obtain money and assist others in obtaining money in a fraudulent manner.”
“In many cases, by direct or indirect contact with the persons that the Defendant fraudulently verified to The Salvation Army were landlords owed rent, Defendant communicated that a portion of the check which was delivered was to be returned to her.
“Defendant received payment and financially gained from the scheme. The fraudulently verified landlords also received financial gain as a result of the scheme,” the indictment states.
In addition to the fraud charges, Guthrie allegedly falsified documents using two different names to obtain mortgage payments to Exeter Finance LLC so that the payments would pay her car loan with Exeter.
The indictment stated that Newton County contracted with The Salvation Army’s Covington location to distribute ARPA funds to eligible residents for whom COVID-19 negatively affected their job status and economic stability.
The Salvation Army developed an application process for affected families to pay rent, utilities and other expenses related to housing. Newton County agreed to spend an amount up to $700,000, in installments of $175,000 each quarter, to help keep families in their homes “provided that the distribution to designated applicants was approved by the county.”
“The Salvation Army was required to maintain a reasonable accounting system and record transactions of financial disbursement in order for Newton County to determine the use of the funds and for Newton County to report any data requested about the use of grant funds to the U.S. Department of Treasury. The Salvation Army was required to use the money only for the services outlined in its contract with Newton County,” it stated.
The Salvation Army developed an application and approval system with a series of forms, including an Application for Assistance, and where appropriate, a Rent Verification Form.
Guthrie was hired for a case worker position established by the Salvation Army to review applications seeking assistance “and to verify the information provided by the applicant was true and correct,” the document stated.
“Through her position, she was responsible for receiving the applications and rent verification forms, and certifying that she had reasonably verified that the information provided was true and correct.
“In addition, the Defendant filled out a form noting the amounts and vendors The Salvation Army agreed to pay. The Defendant would tender the forms to another employee with The Salvation Army in order for checks to be sent and the record to be maintained.
“To accomplish the scheme, the Defendant received applications for financial assistance from individuals in the Newton County community seeking utility or other housing assistance. She then fraudulently and falsely altered the applications to request rental assistance instead of or in addition to the assistance requested.
“The landlord(s) fraudulently designated on the forms tendered to The Salvation Army by the Defendant did not own the property listed and did not rent to the individuals listed. Nevertheless, the Defendant submitted forms explicitly or implicitly verifying that information provided was true and correct, with the purpose of a check being delivered to the person listed as a landlord.
“On other occasions, the Defendant knowingly created or accepted applications for rental or mortgage assistance for or by individuals who were fictional or who had not applied for assistance. The landlord(s) designated on the forms were not owners of the property listed and did not rent to the individuals listed. There, too, the Defendant filled out and submitted forms explicitly or implicitly verifying that information provided was true and correct, with the intent and purpose of a check being delivered to the person listed as a landlord.
“Once approved for payment, checks in the amount specified on the forms submitted by the Defendant were delivered to the persons or entities listed as landlords or mortgage holders.”
It stated she allegedly submitted applications for rental assistant by falsely naming Canute Ashmead, Ronnie Brogden, Shameka Brooks, Kiairus Dixon, Kevon Donald, Dion Flanagan, Latoya Gordon, Stacey Harmon, Alfonso Heard, Demarco Horne, Myra Horton, Tyesha Humphrey, Dominique Lewis, Isaiah Johnson, Carmen Manigo, Anesha McMullen, Clinton McNair, Jermaine Newsome, Crystal Newsome, Demarco Perdue, Darry Poole, Landyn Robinson, Paula Slaughter, Tanya Stubbs and Moses Williams as “landlords.”
“Each of these individuals listed as landlords received one or more checks from The Salvation Army for funds approved as a result of the false information on the application.”
It alleged that Guthrie conspired with one or more of the “landlords” to take money from The Salvation Army by submitting applications with fraudulent information and keeping or sharing the money received from cashing the checks approved and delivered.
Those allegedly receiving the checks were listed as Canute Ashmead, Jessica Belcher, Ronnie Brogden, Shameka Brooks, Dawn Dewalt, Kiairus Dixon, Kevon Donald, Latoya Gqrdon, Stacey Harmon, Alfonso Heard, Demarco Home, Myra Horton, Tyesha Humphrey, Dominique Lewis, Isaiah Johnson, Anesha McMullen, Clinton McNair, Jermaine Newsome, Crystal Newsome, Demarco Perdue, Darry Poole, Landyn Robinson, Paula Slaughter, Tanya Stubbs, Moses Williams, and Jamar Donald.
