Guy Thompson, a former Milton mayor and ex-United Way of Santa Rosa County director, pleaded guilty to 20 counts of wire fraud and three counts of tax evasion in federal court Thursday afternoon.

Thompson, 65, waived his right to a grand jury indictment and instead pleaded guilty to each count based on information compiled by the U.S. Attorney's Office for the Northern District of Florida.

Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of tax evasion carries a maximum of five years in prison and a $250,000 fine.

Financial investigation:Santa Rosa United Way puts Executive Director Guy Thompson on leave

Human impact:Charities that relied on United Way of Santa Rosa County deal with fallout

Complex embezzlement scheme

Between at least 2011 and 2018, Thompson embezzled money belonging to United Way of Santa Rosa County while he was employed as its executive director, according to a press release issued after the hearing by the U.S. Attorney's Office.

Thompson devised a complex scheme where he kept a portion of money intended for use to pay United Way's regular bills and expenses by replacing it with other donation checks no one at United Way knew about. By conducting a series of complicated financial transactions to cover his tracks, Thompson embezzled over $650,000 from United Way of Santa Rosa County, according to prosecutors.

Thompson maintained his scheme by making fraudulent misrepresentations to United Way's board members and employees, its parent nonprofit United Way Worldwide and bank personnel, according to the press release. He also took steps to prevent internal or external audits of United Way from occurring that would have uncovered his fraud.

Thompson then failed to report to the Internal Revenue Service the extra income from his embezzlement scheme, which ranged from approximately $86,000 to $99,000 in a given year, the press release said.

The government said it intends to forfeit all proceeds of Thompson’s fraud, including approximately $221,000 that has already been seized from his bank accounts.

Thompson will be sentenced July 29. He will remain on probation until his sentencing.

Financial investigation launches

Thompson was ousted from the United Way of Santa Rosa County in October after the financial irregularities first came to light. The FBI began its investigation of Thompson later that month, and the organization launched its own internal audit as well.

In March, United Way Worldwide formally cut all ties with the Santa Rosa County organization, and ordered the local group to stop using the United Way name and logo. The organization has since stopped accepting and distributing donations, no longer has a staff, is selling its buildings and has all but dissolved completely.

In a prepared statement provided to the News Journal after the plea hearing, the chairman of the remaining board of directors of the organization formerly known as United Way of Santa Rosa County, Rick McClanahan, said it was one of the "victims" in Thompson's case.

"The United Way of Santa Rosa County's Board of Directors, as one of the victims in this taking, remains supportive of the clients served by our partner agencies who are also hurt by this," McClanahan said in the statement. "As such, we are focused on the recovery of funds to distribute to their programs and very thankful for the expediency of all parties involved in this investigation."

►Cutting ties:United Way of Santa Rosa County loses charter amid financial audit, FBI probe

►Selling the building:Defunct United Way of Santa Rosa County to refund 2019 donations

Jane Judy Miller, a board member of the Family Resource Center in Milton, said her organization would definitely feel the effects of the United Way of Santa Rosa County going under. The charity received $20,000 in United Way funding last year.

Miller attended Thompson's hearing on Thursday due to the "major fallout" she said local charities will be experiencing in the coming months as a result of Thompson's actions. She sat quietly on a bench in the courtroom on the first floor of the U.S. Federal Courthouse in Pensacola as Thompson pleaded guilty to all 23 counts.

"Family Resource Center provides food, clothes, energy, power and water bills, and we've seen such an increase in senior citizens to include people over 55, as well as children 18 and under," Miller said. "That $20,000 we received last year not coming our way this year would have helped a lot of people.

"I hate that it has to be this way," she added, referring to Thompson. "But I've got to think of the women, children and seniors in Santa Rosa County who are not going to be served because of what has happened."

United Way of Escambia County has announced it would be expanding its services into Santa Rosa County.

Annie Blanks can be reached at ablanks@pnj.com or 850-435-8632.