Sean P. Costello U.S. Attorney | U.S. Attorney for the Southern District of Alabama
Today, U.S. Attorney Sean P. Costello announced charges against seven individuals connected to a fraud scheme at the Prichard Water Board. A federal grand jury in Mobile, Alabama, released a thirty-two count indictment against five individuals, while two others have already pled guilty and await sentencing.
The unsealed indictment details a scheme from 2018 to 2022, involving a false contractor setup that defrauded the Prichard Water Board of about $2.4 million. The indictment notes that approximately $960,000 was laundered, including through a business by Nia Bradley and Randy Burden, both employees of the board. The Prichard Water Board serves around 10,000 clients and is partly funded by a $55 million bond.
The fraud involved creating fictitious businesses and false invoices to justify unauthorized payments. Bradley and Burden allegedly falsified payment authorizations, receiving kickbacks in the process. Payton and another board member, not charged, allegedly partook in falsifying payments and receiving illegal benefits. The conspirators communicated with coded messages and destroyed evidence, according to the indictment.
Bradley and others, including Ayanna Payton and Steve Jones, committed tax fraud to conceal the scheme, leading to demands for money judgments totaling over $3.7 million and forfeiture of properties involved in the fraud.
Charges vary among the defendants. Bradley faces charges like Conspiracy to Commit Mail, Bank, and Wire Fraud, alongside tax-related charges. Burden, Jones, Knight, and Lamar also face various fraud-related charges. Payton and Stephanie Hunn have pleaded guilty and await sentencing.
U.S. Attorney Costello stated, "The taxpayers of the Southern District of Alabama deserve to be able to rely on competent, honest public servants." FBI Mobile Division Supervisory Special Agent Parker Still highlighted the investigation's reflection on law enforcement collaboration to maintain public trust in services.
The investigation was conducted by the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service, with local assistance. Assistant U.S. Attorneys J. Bishop Ravenel and Kasee S. Heisterhagen will handle the prosecution.
It is emphasized that an indictment is not proof of guilt and that all defendants are presumed innocent unless proven guilty through the legal process.
