MEMPHIS: Shelby (CO) claim against insurance seeks to recover Jone's tab (CREDIT CARD SCANDAL)

The Commercial Appeal ^ | 10/09/02 | Michael Erskine

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Shelby claim against insurance seeks to recover Jones's tab By Michael Erskine erskine@gomemphis.com October 9, 2002

The county plans to file an insurance claim over funds allegedly misdirected for personal use by former mayoral aide Tom Jones.

That decision was mentioned in a memo summarizing the county's special counsel findings into Jones's personal spending on county-issued credit cards.

Jones, former mayor Jim Rout's senior adviser, is being investigated by the FBI and the Shelby County District Attorney General's Office.

County Attorney Donnie Wilson said Tuesday that Jones is included under a blanket insurance policy covering losses due to an employee not carrying out duties.

Wilson said the county plans to retrieve "any deficiencies that we have related to any outstanding amounts." He said the policy, with Affiliated FM Insurance Co., provides coverage for up to $900,000, with a $5,000 deductible.

An internal county audit determined last week that Jones owes the county $87,483.08 for $126,442.22 in personal items charged to his county cards.

Jones's attorney, Robert Spence, maintains his client has paid back $45,000 to the county - all or nearly all of what Jones spent on personal items.

Spence said Tuesday he had not seen the special counsel report and did not have access to it.

"Why the county feels the need to continue this character assassination is inexplicable," Spence said.

"Nonetheless, my client will continue to persevere and, tomorrow, I will release a detailed, line-by-line response to the audit that I believe will provide great insight into this document."

The special counsel report, compiled by attorneys Herbert Gerson and Richard Beeler, surmised that Jones violated a number of county policies covering credit and procurement card use, travel expenses and conflicts of interest.

"It also appears that Mr. Jones was able to accomplish these acts because of his position," the report said.

The report noted that in addition to using his cards for personal profit, Jones failed to provide proper documentation for his credit cards and travel.

The report said Jones violated the conflict of interest policy by using county money allocated to the Memphis Regional Chamber for personal use.

- Michael Erskine: 529-5857

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Memphis. Home of the Mid-South Fair, pyramids, the muddy Mississippi, or at least part of it, blues, Beale street, Elvis and that other Ford, Harold.

In 1974 Gerry Ford, in assuming the presidency following Richard Nixon's resignation, said in his acceptance speech, "I'm a Ford, not a Lincoln." Those carefully chosen words soothed a nation.

In another part of the country, Memphis and Shelby County a man named Harold Ford was beginning to live as a Lincoln, and not a Ford. More corruption has occurred in Memphis during the past thirty years than a president could ever contrive. And it has done so with a blind press and a justice system with 20/20 vision.