Feds seize Wanda Greene's bank account amid money laundering charges

Jennifer Bowman | The Citizen-Times

Show Caption Hide Caption Key Buncombe personnel departures follow Wanda Greene investigation Several officials are no longer with Buncombe County following the fallout of the federal investigation into former manager Wanda Greene.

ASHEVILLE — A credit union account assigned to Wanda Greene that was used to wire money last year for a real estate closing has been seized by federal officials, according to a warrant obtained by the Citizen Times Thursday.

The seizure warrant, signed by U.S. Magistrate Judge Dennis Howell, allows investigators to freeze nearly $30,000 in a State Employees' Credit Union account assigned to Greene, Buncombe County's retired county manager who has been twice indicted on federal charges.

An FBI agent noted in the warrant several wire transfers from the account, including to a Tennessee law firm and to Greene's son, Michael.

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The most recent indictment against Wanda Greene was announced the day before the June 6 seizure warrant was signed by Howell. She has pleaded not guilty to all charges since April, which include money laundering, embezzlement, conspiracy and fraud.

Investigators said in the warrant there is probable cause to believe the money in Greene's credit union account are derived from proceeds of wire fraud and money laundering.

Though officials seized the account's $30,000, the balance shortly before Greene's retirement last summer was $93,000. It received $428,000 in deposits between July 24, 2017-March 20, 2018, according to the warrant.

Nearly $396,000 of the account's deposits last year came from Wanda Greene's cashing out her two county-funded life insurance policies, investigators said. The warrant noted a July deposit of a $395,860 check, which included $192,361 from one insurance policy and $203,499 from the other.

Greene is accused of spending more than $2 million of county funds to buy whole life insurance policies for herself and other employees, including her son, Michael. That money was initially appropriated for settlements related to wrongful convictions in the Walter Bowman shooting death, the June 5 indictment said.

Greene cashed out the policies shortly after her retirement and deposited the money into her State Employees' Credit Union account, according to prosecutors.

Investigators say that on Aug. 7, 2017, Greene wired $155,000 of the proceeds to an unnamed Nashville, Tennessee-based law firm's account to pay for costs related to a real estate closing. Prosecutors have not disclosed any further information on the transaction, and the Citizen Times found no property in the firm's region that lists Wanda Greene as the owner.

The seizure warrant claims $100,000 was wired Aug. 14, 2017, to another State Employees Credit Union account in Greene's name, "and ultimately provided to Michael Greene and another individual."

There were more wire and electronic transfers last year, investigators said, in which proceeds from the life insurance policies funded "one or more accounts" of Wanda Greene.

Buncombe County and the U.S. attorney's office both say commissioners never approved the life insurance program and were unaware the policies existed.

That claim was contradicted last week in a news release by county staff, which asserted that an unnamed employee asked former board chairman David Gantt about the policies. Gantt strongly denied the claim and took issue with the county using what he called "anonymous employees."

Chairman Brownie Newman later identified County Manager Mandy Stone as the employee. Stone abruptly retired the same day, and commissioners are still determining who will serve as an interim replacement.

Greene pleaded not guilty Wednesday morning to the latest charges involving the insurance policies. She is due in court again Aug. 6.

As part of a request made by Assistant U.S. Attorney Richard Edwards, Howell required as part of the conditions of her release that Greene notify the court of any financial transactions over $10,000.

Edwards noted in court the recent sale of Greene's home in Arden and her involvement in a "fair number" of real estate closings.

Michael Greene is his mother's co-defendant in a separate case in which prosecutors allege the duo used county credit cards to pay for personal purchases, including retail gift cards. He resigned as Buncombe's business intelligence manager the same day the federal investigation was confirmed.

County officials have filed a lawsuit against Wanda and Michael Greene in an attempt to recover money they argue the mother and son illegally spent. The suit also claims ex-board chairman David Gantt's signature on documents related to Wanda Greene's retention incentive were forged.

"I am confident that the criminal investigation by the U.S. attorney’s office and civil investigation by former Judge Ron Payne will provide Buncombe County citizens with answers to the questions they are entitled to concerning misuse of taxpayer money," Gantt said in a statement Thursday. "I will continue to fully cooperate with both offices to make sure they can give a full and comprehensive report to the residents about all details in this disappointing chapter of Buncombe County history.

"I assume whoever forged my signature on county documents will be fully investigated by the offices handling these matters."

Staff writer Molly Horak contributed to this report.