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Lebanon officials settle with federal government over automotive contract disputes

Zachary T. Lee Acting United States Attorney | U.S. Attorney for the Western District of Virginia

The United States Attorney’s Office for the Western District of Virginia has announced a non-prosecution agreement with Michael Elijah Leonard, a Lebanon, Virginia Town Council member, and his sister Amber Musick. The siblings have been involved in automotive businesses and had previously secured contracts for work in the Town of Lebanon.

Court documents reveal that Leonard, who has been on the Town Council since 2020, is also a director and owner of Leonard Automotive. In December 2022, Musick submitted bids under Appalachian Collision & Auto Parts, Inc., a company she solely owned but which lacked assets. Leonard Automotive performed all services for contracts won by Appalachian Collision.

Leonard abstained from council votes on these bids but was aware that Leonard Automotive would complete the work. The Town of Lebanon paid over $10,000 to Appalachian Collision for services rendered by Leonard's company.

In December of last year, an agreement was reached among the United States Attorney’s Office for the Western District of Virginia, Leonard Automotive, Appalachian Collision & Auto Parts, Inc., Michael Elijah Leonard, and Amber Musick. The terms included disgorging funds received from the town and dissolving Appalachian Collision & Auto Parts. Future bids to public entities will be made only under Leonard Automotive's name.

Acting United States Attorney Zachary T. Lee and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division announced this resolution.

The investigation was conducted by the Federal Bureau of Investigation alongside the United States Attorney’s Office for the Western District of Virginia. Assistant U.S. Attorney Carrie Macon is handling prosecution efforts.