Zachary T. Lee Acting United States Attorney | U.S. Attorney for the Western District of Virginia
The former Executive Director of the Southwest Regional Recreation Authority (SRRA), Melissa Slemp Rose, has been sentenced to time served plus three years of supervised release. She is also required to pay $16,614 in restitution for bank fraud and embezzlement related to her scheme involving funds intended for the Spearhead Trail System. This trail system operates within several counties and the City of Norton.
Rose, aged 52 from Coeburn, Virginia, had previously pled guilty to charges of bank fraud and embezzlement. The SRRA was established in 2008 with a mission to manage the Spearhead Trail System, which comprises three outdoor recreation tourism destinations. It receives approximately $1.1 million annually in general funds, including federal contributions.
Initially hired as the Sales and Finance Manager on July 23, 2019, Rose was promoted to Executive Director in October 2021. Her responsibilities included overseeing daily operations of both the SRRA and the Spearhead Trail System. She resigned on February 3, 2023, after an investigation into her misuse of SRRA funds.
Court documents reveal that on January 23, 2023, it was discovered that Rose had misappropriated SRRA funds for personal use by writing checks totaling $16,614 from the SRRA’s bank account under false pretenses. These checks were used towards purchasing a residential property valued at $69,5000 with a down payment of $15,000 for her own use. To conceal her actions, she recorded these payments as tool purchases in SRRA's QuickBooks system and falsified documents using forged signatures.
Acting U.S. Attorney Zachary T. Lee emphasized the importance of such prosecutions: “Prosecutions of this nature are important for the public to have confidence in those entrusted to oversee public funds and administer public programs.” He added that his office takes these investigations seriously to ensure accountability among public officials.
The investigation was conducted by the Virginia State Police alongside financial fraud investigators from the U.S. Attorney’s Office. Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen prosecuted the case.
