Lici Beveridge

Breaking News Reporter

The Rev. Kenneth Fairley, 62, of Hattiesburg is seeking to appeal his federal theft and conspiracy convictions.

The case was transferred to the 5th Circuit Court of Appeals.

Fairley was found guilty in September of two counts of theft of government funds and one count of conspiracy to defraud the government, involving money received from the U.S. Department of Housing and Urban Development through grants administered by the city of Hattiesburg.

Pine Belt Community Services, of which Fairley is director, turned in about $38,000 in receipts for two homes it was supposed to rehabilitate using the HUD grants. The homes are located at 202 South St. and 127 E. Fifth St.

Pine Belt Community Services received around $98,000 for the projects, which left around $60,000 unaccounted for.

He was sentenced Dec. 19 by U.S. District Judge Keith Starrett to three years in prison and ordered to pay $60,223.95 in restitution and a $30,000 fine. Each charge came with a three-year sentence, but Starrett ordered they be served concurrently.

Fairley also will have three years of post-release supervision.

Trial attorneys Sanford Knott and Arnold Spencer will handle his appeal along with New Orleans attorney Herbert V. Larson Jr.

Fairley, who asked for leniency, gave a statement at his sentencing but never apologized. He said he believed in the court process, but said the jury "got it wrong."

Fairley, pastor of Mount Carmel Baptist Church, has remained free on $25,000 bond. He was ordered to report to prison within 60 days of sentencing.

Artie Fletcher, 55, of Picayune, who was indicted with Fairley but pleaded guilty to a separate charge of misprision of a felony, was given three years of probation and also ordered to pay $60,223.95 in restitution. The other charges against him were dropped.

Fletcher admitted he had knowledge of a felony and did not make it known to authorities.

Fairley initially faced six charges tied to grant money his nonprofit organization received through a HUD home rehabilitation program. Three of those charges were dropped the first day of trial: two counts of engaging in monetary transactions to criminally derive property and one count of conspiracy to commit money laundering.

The conspiracy charge stemmed from activity between Fairley and Fletcher, who operates a number of businesses in the New Orleans area. The government proved Fairley and Fletcher entered into an agreement in which Fletcher was contracted to conduct the rehabilitation work but the actual work was subcontracted "to local individuals and companies who attempted to perform the work for a lesser amount."

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