Stanback, a member of the Richmond County School Board, is mounting a mayoral campaign against long-term Rockingham incumbent Gene McLaurin. He did not return multiple phone calls from the newspaper.
He has been unavailable for comment on the investigation of the RHA or his campaign to become mayor of Rockingham.
The letter is from U.S. Attorney Anna Mills Wagoner and is dated August 10.
“I am writing to advise you that this office is currently active in an investigation involving operations of the Rockingham Housing Authority (RHA) during your tenure as the Chairman of the Board of Directors of the RHA,” the letter reads. “Facts uncovered during the course of the investigation to date have resulted in this office requesting that the Federal Grand Jury review your activities with respect to these matters.
“You are a target of this investigation.”
Much of the two-page letter is concerned with instructing Stanback on his constitutional rights throughout the court’s proceedings.
First, it instructs him he could testify before the grand jury, which convened on August 31, if he pleased, however he wouldn’t be served with a subpoena to testify.
“... this will be a final offer on the part of this office,” it reads.
A federal courthouse official confirmed the grand jury that convened on August 31 adjourned last Tuesday.
“The presentation of evidence as it relates to a case can last for several grand jury sessions,” said Greensboro U.S. Attorney’s Office Spokeswoman Lynn Clower. “Lots of times, investigations are on-going, and evidence is presented to the grand jury as it becomes available.”
She called it “very common,” for a case to be heard in more than one session of federal grand jury.
Stanback was also invited to appear with his attorney at the U.S. Attorney’s Office in Greensboro to meet with them and federal investigators by the date the grand jury convened.
It instructs Stanback if he is not heard from before August 31, it would be assumed that he does not wish to cooperate with the investigation, and it would proceed without his cooperation.
The Daily Journal has been unable to confirm or deny if that meeting took place before that date.
“You are invited to bring with you any and all records, documents or writings of any nature whatsoever which you feel will be helpful,” it reads.
Rockingham Police Chief Robert Voorhees, who opened an investigation into the financial transactions of the RHA, declined to comment on the letter.
The letter follows to advise Stanback of his Miranda rights, and states “Nothing contained in this letter should be construed as an offer of immunity.”
In July 2008, he left the RHA board and began working as the director of the 21st Century after school program the housing authority operated at Falling Creek Park in Rockingham.
He was later removed from that position due to a conflict of interest for accepting the $54,000 a year job within a year of serving on the RHA board. RHA Executive Director Gracie Ingram has also been a target of a joint investigation between the Rockingham Police Department and the U.S. Department of Housing and Urban Development Office of Inspector General in Greensboro.
She was terminated from her approximately $80,000 a year job in June after serving for 14 years,.
Ingram and Stanback were the two signatories on an account registered to the Richmond County Enrichment Corporation, which appears to be at the heart of the investigation into RHA dealings.
The account for the non-profit organization was set up at First National Bank and Trust at least as far back as 1999, and RHA Interim Director Jim McCaskill and then-Chairman of the Board of Directors Ed Ormsby gained access to the account only after Ingram’s termination.
Ingram and Stanback apparently never willingly relinquished their access to the account.
To date, the joint investigation has netted one arrest. Suspended RHA Public Housing Specialist Mildred McSween is facing four felony charges for falsifying information on a public housing application.
Those charges are being prosecuted by the State of North Carolina, and two of the charges are for felony conspiracy related to the alleged fraud.
On both conspiracy charges, Ingram is listed as a co-conspirator.
The McSween case is currently working its way through the court system, after she was indicted by a Richmond County Grand Jury in July.
At the August meeting of the RHA, McCaskill began to introduce “more information” about the account and the non-profit organization, before Voorhees advised him the conversation may be more appropriate for closed session.
McCaskill replied the information was appropriate for the public record, and said the account was used for more programs than previously believed and the board of directors of the Richmond County Enrichment Corporation were taken from the Board of Directors for the RHA.
More discussion followed behind closed doors.
Ingram is represented by Charlotte Attorney Will Terpening, who maintained his client’s innocence in a June interview.
The sad part for me is, I know two of these people and I was shocked at these allegations. I must maintain the fact that people are innocent until proven guilty.
The truth will come out, it always does.
We ALL reap what we sow, be it good or bad.