How Wanda Greene became an accused embezzler, and what's next for the ex-Buncombe manager

ASHEVILLE — When Wanda Greene retired from a more than 20-year career with Buncombe County, she left with a largely favorable reputation as a numbers guru and, according to her elected bosses, the best manager ever seen in Western North Carolina's largest municipality.

The well-spirited sendoff didn't last long.

Behind the scenes, officials already had restricted Greene's access to records and county property. They would hand over documentation of questionable financial expenditures to federal investigators less than a week after her departure, launching a criminal investigation that would ultimately accuse her of embezzlement and wire fraud.

More: Ex-Buncombe manager Wanda Greene, son indicted: Embezzlement, wire fraud among charges

Prosecutors so far have targeted some $200,000 of what they said were improper purchases over a decade. But the Citizen Times has uncovered more than $3 million of controversial transactions during that same time period.

Now, Greene's post-retirement reputation is marred with allegations of nepotism, a disregard for transparency and a tendency to elude commissioner approval.

See: Former Buncombe manager Wanda Greene was friend to some, foe to others

It's a step that could decide the fate of her retirement benefits — and members of her family. Her son, former county employee Michael Greene, also has been indicted, while other relatives have been identified as potential witnesses.

Both Wanda and Michael Greene have pleaded not guilty.

More: Wanda Greene, son plead not guilty in federal court Friday

Federal officials, who said early on that Wanda Greene “and others” were under investigation, haven't ruled out the possibility of additional charges.

Prosecutors have since tied an unnamed commissioner to spending improperly purchased gift cards, but the U.S. attorney’s office would not say whether the elected official is under investigation.

The only thing the office would say: The investigation is ongoing.

This is how Wanda Greene became an accused thief.

Red flags

County officials have largely blamed previously unknown expenditures as management overrides, the result of Greene quietly giving herself authority through ordinances or by simply ignoring policies.

But the former county manager began leaving a paper trail long before she retired, and was able to avoid oversight for which commissioners were responsible.

As county manager, Greene was never regularly evaluated as county manager. And she never provided a detailed, line-item budget to commissioners — meaning the board for years approved ordinances that provided only summaries of the county's annual spending plans.

Greene also used those budget ordinances to push through personnel-related actions, including a controversial $1.4 million retention incentive program, the discretion to grant bonuses to certain employees and the authority to appoint the chief financial officer.

The CFO, a position now filled by Tim Flora, is an employee of the Board of Commissioners. He reports directly to elected officials.

Court documents have revealed other issues known to the county.

Greene told a county employee she gave up her county-issued credit card to avoid disclosure under the state's public records law, according to the grand jury indictment.

More: North Carolina's municipal managers condemn Wanda Greene's alleged conduct

And nearly a decade ago, her son, former county employee Michael Greene, was found by then-Internal Auditor Tim Flora to have engaged in fraud against the county. Prosecutors said his credit card was revoked, but the matter was referred to his mother.

Michael Greene never was disciplined, according to the indictment.

In a presentation to commissioners earlier this year, Flora said Wanda Greene handed down "peculiar decisions and direction" in fall 2016, though "nothing concrete." But Greene's "questionable actions" raised red flags by last spring, he said.

Flora also has said he opposed the use of economic development funds to give an advance payment to Skyland Fire and Rescue, ultimately stopping at least one transaction directed by Greene.

More: Buncombe County used economic development fund for advance Skyland fire payments

Beyond the indictment

While the grand jury indictment targets only $200,000 worth of purchases, the Citizen Times has reported on nearly $3.6 million worth of controversial expenditures.

The indictment showed much of what had been previously reported: Greene is accused of using county-issued credit cards to pay for personal purchases, including home decor, phone payments and gift cards.

Prosecutors billed the cost of Buncombe-bought gift cards at more than $90,000 over a decade-long period. That includes purchases Greene made and those she directed her assistants to buy, according to the indictment.

But from retention incentives to equestrian advertisements, the largest amount of controversial spending is not included in the indictment.

More: Wanda Greene's alleged gift card purchases outspent other North Carolina counties

In mid-2016, Greene created a program that gave a total of some $1.4 million in extra compensation for certain employees. The list of recipients was decided by Greene and includes herself. Commissioners say they were unaware, but Greene included the change in a budget ordinance that was approved by a majority of commissioners.

The board, instead, debated for nearly an hour on other budget issues before approving the budget in a split vote.

Another $600,000 in spending is tied to a Polk County-based Tryon International Equestrian Center, a new facility owned by business mogul Mark Bellissimo. Most of it went toward advertising and sponsorships signed off by Greene.

Though the ads promote the Asheville Regional Airport, the airport did not contribute any funding. That's a different strategy than that of Greenville-Spartanburg International Airport, which paid for its own sponsorship with the equestrian center, according to documents obtained by the Citizen Times through a public records request.

Greene also used taxpayer funds for a private dining reception with the equestrian center's CEO, Mark Bellissimo, and some of the area's most prominent names in the business and real estate community.

Records show Greene also used her county-issued credit card to pay for retail trips and pricey dining. She logged nearly $40,000 in meals during a three-year period, with as many as 25 restaurant trips in a single month.

Some meals were exceptionally costly: She once spent $1,201 at the Second Empire Restaurant and Tavern in Raleigh, and $766 at the Space Needle's SkyCity Restaurant in Seattle.

An expense report obtained by the Citizen Times revealed Greene received more than $257,000 in reimbursements in the final years she worked at Buncombe. She submitted redacted receipts in which she used black marker or white correction fluid to remove information such as email addresses, credit card information and descriptions of purchased items.

Greene also was reimbursed for payments that were originally paid for by her son.

More: Wanda Greene redacted her own receipts. Did she violate public records law?

Such expense reports are reviewed by finance staff, county attorney Michael Frue said, and are checked to see whether documentation of the transaction is submitted.

The county has not yet responded to requests on which county staffer reviewed Greene's reports, and how staff could approve redacted receipts.

The county's response

As they work to restore public trust, county officials consistently point to their policy changes since Greene departed.

Among the most recent changes: The placement of strict restrictions on county-bought meals and gift cards.

More: After Wanda Greene, commissioners consider strict restrictions on gift cards, meals

With the input of a county staff team, officials have implemented policies that create a liaison position to consider requests from the few departments that are still allowed to buy gift cards. Such purchases were not explicitly prohibited under previous county rules, but the new policies now clearly state gift cards cannot be provided as payment for goods and services.

County-funded meals should be "cost-effective and reasonable" under the policy, and staff are required now to submit receipts, invoices, an agenda of the meeting and an accurate attendance list.

See: Anonymous hotline, no-retaliation policy set up for Buncombe County staff

Other changes implemented by Buncombe officials include limiting the county manager's spending limits; requiring a vote on economic development funds; setting a cap on employee bonuses; and scaling back the authority of the board chairman.

You can read a document from the county outlining its changes since the launch of the Greene investigation here:

In an April 13 statement released after the Greenes' not guilty pleas, commissioners and county administration said they were committed to ensuring "full accountability."

"The actions of the former county manager Wanda Greene and Michael Greene are the exception and do not represent the more than 1,400 public servants who continue the work of the county each day with integrity and professionalism," the joint statement said.

The county, at times, has refused to hand over records before the legality of withholding them has been challenged by the Citizen Times. Officials initially declined to provide records related to credit card spending by Greene's assistants, and has not released life insurance records.

First denying the request on the grounds of an ongoing criminal investigation, the county now has shifted its reasoning to claim any life insurance policy payments for Greene is part of her private personnel file.

Two months later, the county has yet to respond to a challenge from a Citizen Times attorney that the records are subject to public disclosure.

Next steps

The 56-count indictment accuses both Greenes of wire fraud and conspiracy charges. Wanda Greene additionally has been charged with embezzlement.

Some charges carry maximum penalties of 20 years in prison per count.

Both will be tried in a system that, through either pleas or trials, has convicted more than 90 percent of defendants. That's a rate that has remained at that level since at least the early 2000s, according to annual data released by the U.S. Department of Justice.

The mother and son could lose a portion of their retirement benefits if convicted. North Carolina law restricts pensions for public officials convicted of a federal or state felony related to the job, targeting the years of service related to the crime. Individual pension contributions or earned interest is not affected.

The indictment's accusations of illegal spending span a decade.

“Full-time public employees are required to contribute 6 percent of their salary to the retirement system,” said Stephanie Hawco, a spokesperson with State Treasurer Dale Folwell’s office. “They are always entitled to receive a refund of those contributions.

“Based on the outreach efforts of (Department of State Treasurer) staff, many district attorneys and judges are now aware of the felony forfeiture laws and in some instances as part of the plea bargain process, DAs have negotiated with defendants who were public employees to use their refunded contributions to pay restitution.”

The U.S. attorney’s office says the investigation is ongoing. In the indictment, prosecutors tied an unnamed commissioner to spending some of the improperly purchased gift cards. That commissioner was not named, but was described as serving at the time the cards were used between 2011-2012.

All five commissioners at the time – David Gantt, Holly Jones, Carol Peterson, K. Ray Bailey and Bill Stanley – have denied they are the official mentioned in the indictment. A spokesperson with the U.S. attorney’s office would not say whether the unnamed commissioner is under investigation.

A federal judge last week denied the Greenes' request to be able to communicate with several relatives.

Greene has two sisters employed by the county: Irene Wolfe, an accountant, and Peggy Hughes, a staffer in the jail’s identification bureau. The judge said both are potential witnesses – Wolfe additionally has received a grand jury subpoena – and should not be in communication with the Greenes.

The judge also ordered the Greenes to not have contact with Rebecca Gillespie, Wolfe’s daughter. Gillespie is not employed by Buncombe County but has been interviewed by the State Bureau of Investigation, according to court documents.

Under the conditions of their release, Wanda and Michael Greene are allowed to speak to each other but cannot discuss the investigation. They are prohibited from communicating with county staff.

Both Greenes are due in court on May 29 in Charlotte for a status conference before U.S. Judge Robert Conrad.

Court documents show Greene is represented by Thomas Amburgey, a former assistant district attorney, and Noell Tin, a prominent Charlotte defense lawyer.

Tin represented Kenneth Kagonyera following his wrongful conviction in the 2000 murder of Walter Rodney Bowman in Fairview. Tin also is the lawyer for Jane Whaley, the founder of the Spindale-based Word of Faith church who is accused of abusing and brainwashing children to keep them in the congregation.

Though her legal counsel has largely declined to comment on matters related to the investigation, Amburgey has said that Wanda Greene has been cooperating with investigators and will continue “as long as her assistance is needed.”

By the numbers

Some $200,000 of spending is targeted by prosecutors in their indictment of Wanda and Michael Greene. But other controversial expenditures have surfaced since the former county manager's retirement.

Retention incentives: $1,464,000

Skyland payments: $925,000

Equestrian funding: $593,773.70

Greene's expense reports: $257,031.95

Greene's credit cards: $208,339

Assistants' cards: $126,760.96

1.5 percent bonuses: $118,366

Total: $3,693,871.61

The players

Wanda Greene

Greene began working for the county as an assistant manager, and three years later would be promoted to the top administrative job. For 20 years, she led Buncombe during a time the county saw strong finances and high bond ratings. It wasn't until after her retirement that allegations of embezzlement would surface.

Michael Greene

Greene's only son, Michael, was hired by the county in 2004 and most recently worked as a business intelligence manager in the budget department. Prosecutors say no disciplinary action was taken when an internal audit in 2009 found he defrauded the county, though his county-issued credit card was revoked. He resigned the same day the federal investigation was confirmed and has been indicted by a grand jury alongside his mother.

David Gantt

Gantt and Wanda Greene joined — and left — Buncombe County's top ranks around the same time. An attorney himself, Gantt was the board's longtime chairman who has praised Greene for her administrative leadership. Greene did not receive regular performance reviews under Gantt's tenure. He's often declined to comment to the Citizen Times amid the ongoing investigation.

Brownie Newman

Newman became board chairman after Gantt, and had priorly served as commissioner during Greene's tenure. He's led commissioners through the investigation and through policy changes in the aftermath, including the launch of performance evaluations. His call for reducing salaries after bonuses and retention incentives were disclosed did not receive support from a majority of commissioners.

Mike Fryar

Fryar publicly clashed with Greene, and was known to question expenditures as commissioner. Greene once tried to justify extra pay she granted herself by saying Fryar caused her to work extra hours, and in 2015 accused him of nearly hitting her in the face with a phone. Fryar denied the claim. He has said that Greene often tried to keep commissioners away from staff and attempted to pit commissioners against each other.

Ellen Frost

Frost was once friends with Greene, but their friendship ended prior to Greene's retirement. Frost was aware of Greene's equestrian-related charges, though the commissioner says she did not know the extent. She has since denounced Greene's spending and has made amends with Fryar, a fallout for which both blame Greene.

Greene's assistants

Four county employees, two of which have not been publicly identified, provided assistant duties for Greene. The indictment accuses Greene of using some of their county-issued credit card information for personal purchases, and directing at least two of them to travel to retail stores and buy gift cards in bulk. Mila White and Rachel Norton were previously named in a temporarily unsealed search warrant application; the other two were identified in the indictment only by their initials. County officials have not responded to a request by the Citizen Times for their names.

Mandy Stone

Stone's employment with the county began in 1981, preceding even Greene's longtime tenure. Previously the health and human services director, Stone also served as an assistant county manager and became Greene's successor after a majority of commissioners decided against a search. She was named county manager just 10 days after Greene announced her retirement. Stone also was a recipient of Greene's controversial retention incentive program. Her management style is a stark contrast to that of Greene, serving less as a spokesperson as the county navigates through the investigation.

Tim Flora

A county employee for more than a decade, Flora serves as the county's chief finance officer. He serves at the will of the board, meaning commissioners have the authority to hire and fire him. That's despite the authority commissioners had given Greene in a June 2015 budget ordinance. During Greene's tenure, Flora reported directly to Price. Commissioners took action last year to formally recognize him as finance officer. Flora also served as internal auditor when it was concluded Michael Greene defrauded the county.

Jon Creighton

The longtime assistant county manager and planning director worked alongside Greene during her tenure, and was the supervisor of at least one assistant whose credit card information was being used by Greene. Including supplements and a retention incentive, he was the recipient of an additional $269,000 in additional pay handed out by Greene during her last two years with the county. Creighton retired in December.

Irene Wolfe

Wolfe is one of two of Greene's sisters employed by the county. She previously worked as financial services manager but days after the investigation became public, took a voluntary reassignment — and a $30,000 pay cut — to become an accountant. Last week, a federal judge denied Wanda and Michael Greene's requests to communicate with Wolfe, saying she and two other relatives — Peggy Hughes, the second sister employed by the county, and Wolfe's daughter, Rebecca Gillespie — were potential witnesses. The judge also revealed that Wolfe received a grand jury subpoena.

Unnamed commissioner

The indictment ties a then-serving commissioner to spending of improperly purchased gift cards, though the official is not named. Prosecutors say the cards were used between 2011 and 2012 at Sam's Club and Walmart to buy items such as beef tenderloin, jewelry and wine. All five commissioners who served at the time — Gantt, Holly Jones, Carol Peterson, K. Ray Bailey and Bill Stanley — have denied they are the commissioner mentioned in the indictment. The U.S. attorney's office would not say whether the unnamed commissioner is under investigation.