Nichols receives nine-year sentence

The former deputy director of the Bedford County Emergency Management Agency was sentenced to nine years in prison on embezzlement charges, but not before making some accusations of his own.

And before Eugene Nichols was taken into custody, a judge had already revoked his bond and issued a warrant for his arrest after he failed to appear for his sentencing hearing.

Nichols pleaded guilty in May to embezzling more than $60,000 from county coffers and had been scheduled to be sentenced Monday.

However, Judge Robert Crigler was given a note 15 minutes before court began from defense attorney Richard Dugger stating that Nichols had suffered a heart attack and would not be in court that day.

Assistant District Attorney Mike Randles told Crigler he had encountered Dugger on Friday, who told him that Nichols was in a Nashville hospital.

Crigler then issued a warrant for Nichols' arrest and also revoked his $75,000 bond.

But an hour and a half after he was scheduled to be sentenced, Nichols appeared in the courtroom and Crigler was able to hold the hearing, sending him to state prison for nine years and ordering him to pay restitution of $60,000.

Nichols had suffered a heart attack last week, Dugger told the T-G, but a document from his doctor presented in court on Monday said that he was ready to return to work that day.

Randles also said that the investigation into embezzlement at the county EMA has been concluded.

Accusations

Before he was taken into custody, Nichols entered a written statement into the record for his pre-sentence report, asking investigators to look into the actions of others involved with the county EMA.

Nichols apologized "to the citizens of Bedford County that I have disappointed by my actions."

But while he also wrote that he has hurt those he "loved serving," Nichols stated "it is also with great sadness that I must further state here actions of others that too have hurt and taken away things from the citizens of Bedford County."

Saying his job was deputy director, Nichols wrote that "I was not nor ever claim to be a bookkeeper," but did so because no one assumed the responsibility to pay the bills or purchase items.

Nichols said that the agency "was and is filled with misuse and miss appropriation (sic) of the funds it was given by the county."

He asked the state to "look into the misuse of funds by former director Aaron Womble," which he claims he brought to the attention of former county mayor Jimmy Woodson in 2003.

"He further used funds to pay for parts of his own vehicle and that of his daughter and purchased fuel for said vehicles," Nichols wrote, adding he was a volunteer for EMA at the time and did not work for Womble.

Another request by Nichols asked for officials to examine the records of interim director Kester Smith, claiming that "numerous checks were cashed by me and the funds were used for the benefit of Mr. Smith."

Nichols claimed that the practice was "commonplace and continued when the current director (Scott Johnson) took office."

"Several vehicles, generators and boats were placed with Mr. Smith for care that were either scraped or have disappeared," Nichols wrote, adding that Smith approved all purchases and checks that were written or cashed.

Finally, Nichols asked that the state examine Johnson's records, stating that "funds were converted into cash and/or other means for his use by me. Mr. Johnson approved all purchases checks written and cashed."

"The current director being a former investigator for purchasing fraud instructed me on what to place in and how to alter the financial records for audit," Nichols claimed in his statement. "My refusal to change and/or alter and submit the financial records for 2006/2007 resulted in my termination and the investigation and charges as a result."

The charges

When reached for comment, Smith said that it was a matter of public record that the items Nichols referred to were declared surplus and that a check was deposited by Nichols. Smith produced the check in question Tuesday morning, along with a deposit slip.

Smith added that he and Aaron Womble, who died in February of this year, frequently provided equipment for EMA "out of our own pocket."

Johnson told the T-G Tuesday morning that the accusation made by Nichols "were obviously not true."

The TBI investigated the matter, Johnson said, saying that they "looked at everything back to the year 2003."

"It's the bitten dog that yells the loudest," Johnson said. "He did plead guilty (to the charges.) We're the ones that discovered it. We brought it to the DA's attention."

The 70-count indictment against Nichols accused him of diverting a total of $117,000 in funds from the county's Emergency Management Agency to a personal account over a period of several years.

In late May, he made an open plea of guilty to a single count of theft over $60,000 -- a Class B felony that carries as much as an eight- to 30-year sentence.

The remainder of the charges -- 38 counts of theft from $1,000 to $10,000; two counts of theft between $500 and $1,000; two counts of theft under $500; one count of theft between $10,000 and $60,000; and 26 counts of forgery -- were all dismissed.

The investigation into the embezzlement was conducted by the state comptroller's office, and the Tennessee Bureau of Investigation assisted with the matter.

Last August, the case was brought to the comptroller's office's attention by Bedford County Finance Director Robert Daniel. Once the comptroller's office made its findings, the evidence was handed over to District Attorney Chuck Crawford.

"Under all of the circumstances, I think the sentence was fair," Dugger said. He added that Nichols would appeal the sentence, since it is his automatic right.

"Given all the factors and the presentation of everything that was before the court, I think Judge Crigler made a reasonable decision," Dugger said. "You play, you pay, that the best way I can explain it."