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

ASHEVILLE — Once hailed as a financial guru and by some county commissioners as one of the best administrators in North Carolina, former Buncombe County manager Wanda Greene now faces decades in prison after being charged with embezzlement and wire fraud.

A federal grand jury also indicted her son, former county employee Michael Greene.

The charges for both, announced Thursday by U.S. Attorney R. Andrew Murray, are one count of conspiracy to embezzle, steal, obtain by fraud or misapply county funds and 50 counts of wire fraud offenses.

See: A timeline of the Wanda Greene investigation, from retirement to indictment

By the numbers: Wanda Greene tied to $3.6 million in controversial spending

Wanda Greene, 66, additionally is charged with five counts of embezzling public funds and aiding and abetting such embezzlement.

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

Greene and her son have been summoned to appear in court April 13, when they could enter a plea.

Federal prosecutors say Greene and her son misused their county-issued credit cards and used other employees' cards to make nearly $200,000 worth of improper purchases over a decade-long period. Prosecutors also tied an unnamed county commissioner to several gift card purchases.

The Greenes "repeatedly used their (credit cards) to make purchases, at the expense of the county, that were prohibited by the county's policy and procedures, including personal purchases and transactions split to avoid or circumvent the single purchase limit," according to court documents.

Though the total amount spent reached six figures, the cards were routinely used to buy everyday, inexpensive items.

At Wal-Mart, they paid for hair dye, a Nintendo Switch video game system, groceries, cleaning supplies, makeup, women’s lingerie, skinny jeans and other items. Gift cards for Target bought alcohol, a wine aerator, underwear, a lamp shape and soap dispensers.

The indictments are the first major step by federal officials since they confirmed in August that Wanda Greene "and others" were under scrutiny. The investigation started just days after Wanda Greene retired June 30, and she was placed under restricted access to information in her final weeks of employment because of the discovery of questionable financial activity.

Michael Greene, 47, resigned from his job as business intelligence manager the same day the investigation became public. His attorney, Ted Besen, declined to comment Thursday.

Wanda Greene’s attorney, Thomas Amburgey, said "there has been an open dialogue with the investigators and the U.S. attorney's office" since Greene was made aware of the investigation.

"At this point, my client is cooperating with the government and will continue to cooperate as long as her assistance is needed," he said in a statement Thursday.

Prosecutors said Wanda Greene either herself bought or directed assistants to buy more than $75,400 worth of retail gift cards. Most were used "to purchase personal items for herself and others, and not for proper county purposes," according to the indictment.

In her last week of employment, as the county conducted an internal audit, Wanda Greene gave county Budget Director Diane Price an envelope containing $14,400 worth of unspent gift cards.

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But prosecutors tracked down the use of other gift cards. At Wal-Mart, purchases were tied to a membership number assigned to Wanda Greene, and included additional gift card purchases for other locations such as Sonic Drive-In, Starbucks, Cracker Barrel and others.

At Sam's Club, gift cards paid for wine, thermal underwear, and four new tires and its installation. Wanda Greene did not have a vehicle provided by the county, according to the indictment. They also covered membership renewals for Wanda Greene, Michael Greene and an unnamed family member.

Prosecutors said Wanda Greene also provided gift cards to others, including her son and a then-serving county commissioner, "and those other persons likewise used them to make purchases that were not legitimate county purposes."

Five commissioners were serving at the time: then-Chairman David Gantt, Bill Stanley, Carol Peterson, K. Ray Bailey and Holly Jones. None immediately responded to inquiries from the Citizen-Times, though Jones has previously said she never received any gift cards.

The commissioner who received the gift cards is tied to the purchase because of the Sam's Club membership number. Prosecutors say the gift cards paid for silver bracelets, strip steak, oysters, lamb and other items.

Transactions at Sam’s Club and Staples — and gift card purchases for those stores — are unnecessary under county policy, according to the indictment. The county had an open charge account with Sam’s Club, and Wanda Greene had a card for the account. Buncombe also has a state contract with Staples for purchases.

Related: Buncombe commissioner challengers call for restoring trust amid Wanda Greene investigation

Prosecutors argued that Wanda Greene and her son began using other employees' credit card information after Michael Greene’s own card was revoked by the county. Four employees are referenced in the indictment by their initials, and are described as working as Wanda Greene's assistants at one point in time.

Nearly $7,500 in personal purchases made by Michael Greene are cited in court documents, including nearly 20 DVDs — among them "Citizen Kane," "Reservoir Dogs" and "The Nightmare Before Christmas" — and a ticket to watch "Young Frankenstein" at a New York City theater.

Though not an ordinary practice of the county, Michael Greene was allowed to review and approve his own purchases. His card was revoked in 2009 after an internal audit found he engaged in systematic fraud against the county, according to the indictment. Though he was ordered to reimburse the county nearly $1,600, he was neither terminated nor suspended.

Wanda Greene at one point simultaneously had two county-issued credit cards and used each of them, according to the indictment. She had ultimate authority to review and approved her own purchases, and no review by the board was required.

The indictment said she voluntarily stopped using the cards around February 2011, telling an employee that their use could be subject to public records law. Prosecutors cited more than $58,000 worth of personal purchases made by Wanda Greene using county funds.

Wanda Greene made photo-copies of credit cards assigned to her assistants, using the information to pay for Bose sound systems. Two of the systems were found in her Arden home on Aug. 10, when a federal search warrant was executed.

Prosecutors also said the Greenes used other county credit cards to pay for more than $18,000 in Verizon account charges. The bills paid for five phones, two of which were assigned to Wanda Greene and another was assigned to a relative who is not a county employee, the indictment said.

The other two lines were assigned to Michael Greene, though the county never agreed to pay for them. Prosecutors said law enforcement agents found a photo-copy of one of the employees’ credit cards in Michael Greene’s county office in July.

The wire fraud charges carry a maximum penalty of 20 years in prison per count; the conspiracy charge carries a maximum five-year prison term; and the federal program fraud charges carry a maximum 10-year prison term per count. All carry a $250,000 fine.

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

Along with regular shopping trips and gift card purchases, public records requests filed by the Citizen Times have found that controversial spending under Wanda Greene’s tenure totals more than $3.6 million. Her carrying out of a retention incentive program, advertising for a Polk County equestrian center and regular fine dining trips, among other expenditures, have prompted policy overhauls by county commissioners. Buncombe officials have promised to restore public trust after the investigation.

Commissioners are expected Tuesday to vote on policy changes that would set strict limits on employee spending.

"With the indictments handed down today, we move forward as a community in holding former county manager Wanda Greene and former employee Michael Greene responsible for alleged criminal actions on their part," commissioners and administrators said in a joint statement. "If proven true, these actions are a gross violation of Dr. Greene's position and power as an appointed county official and Mr. Greene's responsibility as a county employee.

"As this continues to be an ongoing federal investigation, the Board of Commissioners and county administration have no further comment at this time. Like you, we want to make sure there is full accountability for these actions."

By the numbers

A grand jury indictment singled out some $200,000 in purchases tied to Wanda and Michael Greene, made either by their own county-issued credit cards or that of other staff.

Wanda Greene's personal purchases

Target: $10,718.76

T.J. Maxx: $6,479.03

Bed, Bath and Beyond: $1,464.17

Tuesday Morning: $1,146.48

Wal-Mart: $443.08

Best Buy: $18,256.69

Barnes and Noble: $3,572.93

Amazon: $2,798.19

Other vendors, including Toys 'R' Us, Office Depot, Ross, Vera Bradley and others: $13,202.32

Michael Greene's personal purchases

Amazon: $2,926.87

Staples: $970.77

Best Buy: $1,592.78

Other vendors, including Target, Barnes and Noble and others: $1,988.76

Other employees' purchases

AT&T: $705.53

Verizon Wireless: $18,554.35

Apple: $4,909.89

Other vendors, including Staples, Lowe's, Wayfair and others: $18,257.12

Gift cards: $75,400

Total: $183,387.70

You can read the indictment here: