Ex-Arkansas county clerk accused of embezzling $1.4 million

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Jacob Kade Holliday

JONESBORO (AP) – A former county clerk in northeastern Arkansas faces federal charges for allegedly embezzling more than $1.4 million of government money for personal use.

A federal grand jury indicted Jacob Kade Holliday, 32, on Tuesday on 11 counts of wire fraud, U.S. Attorney Cody Hiland and FBI Special Agent Diane Upchurch announced in a Wednesday press release.

As the Craighead County Clerk, Holliday was official bookkeeper for the county and was responsible for overseeing payroll tax obligations and employment retirement contributions. The indictment alleges that Holliday transferred money from the county clerk’s bank account to his accounts from Jan. 29 to June 24. If convicted, he faces up to 20 years in prison and a fine of up to $250,000.

“We take all allegations of undermining public trust very seriously,” Hiland said in the press release. “In this case and in all potential cases, any reports of public corruption will be thoroughly investigated by our office with the help of our law enforcement partners.”

Dustin McDaniel, Holliday’s attorney, told the Arkansas Democrat-Gazette that they were expecting a federal indictment.

“We have been cooperating with the U.S. attorney’s office for several months, and we will continue to do so,” McDaniel said. “Until we can review the contents of the indictment, we will not be able to comment further.”

Holliday already faced criminal charges in circuit court for 13 counts of property theft and is scheduled to stand trial in March.

Prosecutor Scott Ellington told The Jonesboro Sun that it’s uncertain how the federal indictments will affect the circuit court case.

“I guess it’s yet to be determined because we haven’t seen anything and don’t know all the information from the federal courts,” Ellington said.

In June, Craighead County Judge Marvin Day filed a lawsuit against Holliday seeking to recoup some of the stolen funds. Day said he doesn’t think the federal indictment will affect the civil suit.

Upchurch said that state police investigators made the indictments possible.

“Without the diligent efforts of our partners at the Arkansas State Police, Mr. Holliday’s alleged theft of over $1.4 million from the citizens of Craighead County would not have been uncovered,” Upchurch said.

Holliday, a Republican, was elected to the office in 2012. He is scheduled to be arraigned on the federal charges on Dec. 17 before U.S. Magistrate Judge Joe Volpe.

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