Jan Schaefer, a spokeswoman for Attorney General Jim Hood, said the state and Georgia’s Facility Group, which was hired to oversee construction of the plant, have reached agreement although a settlement has yet to be submitted to Hinds County Circuit Judge Winston Kidd.

“We have agreed on all material terms but the formal written agreement is still being finalized,” Schaefer wrote in an email. “We will release more details when that is complete.”

Schaefer declined to release further details. Phil Abernethy, a lawyer for Facility Group, said Hood is still reviewing the document, but says it could be filed next week.

The state’s lawsuit alleges that Facility Construction Management Inc., a subsidiary of the Smyrna, Ga., Facility Group, kept the project going even after executives knew it was doomed, so the company could keep bilking the state out of money.

Mississippi Beef Processors LLC closed three months after it opened in 2004, laying off 400 people and sticking taxpayers with $55 million in state-backed loans.

Federal, state and local subsidies for the project totaled more than $71 million. There has been some payoff, as frozen-foods firm Windsor Quality Foods bought the plant in 2007 and now employs 300 people there.

A trial had been scheduled to begin March 19 before Kidd, but never took place. The last public action in the case was lawyers arguing motions before Kidd in February. The Facility Group had asked Kidd to rule in such a way that it would have gutted the state’s case, while the state had been seeking to obtain 2004 federal grand jury testimony from the criminal investigation of the plant.

Six people went to jail in that case, including three leaders of the Facility Group — Robert L. Moultrie, Nixon E. Cawood and Charles K. Moorehead. Their company took over after Richard Hall, a Tennessee businessman who originally led the effort, ran into trouble. Hall, whose company collected a $5 million state grant in addition to loan guarantees, was sentenced to eight years in prison after admitting he kept $751,000 in public and corporate funds for himself. Others convicted in the case include a contractor and refrigeration salesman.

Facility Group leaders said they gave illegal campaign contributions to Ronnie Musgrove, a Democrat who was governor from 1999 to 2003. Musgrove had only indirect influence over the project, said he did nothing wrong, and never faced criminal charges. But the fallout from the scandal haunted his failed efforts to be re-elected governor and to win a U.S. Senate seat.

The prime backers of the project were Republican Agriculture Commissioner Lester Spell, then-House Speaker Billy McCoy D-Rienzi, and current House members Steve Holland, D-Plantersville and Tommy Reynolds, D-Charleston.

State Auditor Stacey Pickering eventually recovered more than $550,000 from Facility Group and people who were ordered to pay restitution as part of convictions.

Copyright 2012 The Associated Press. All rights reserved.

The spending, legal in Mississippi, showed up in campaign finance reports, The Commercial Appeal said (http://bit.ly/GPkrts).

Nothing in Mississippi law forbids personal use of campaign money — a loophole that state Rep. Henry Zuber III, R- Ocean Springs, has been trying for years to close.

“Why should elected officials have a gravy train?” he asked.

Davis says he won’t comment until the FBI completes its investigation. The bureau began a criminal investigation of the mayor’s spending after the state auditor told Davis in November to pay back about $170,000 for allegedly improper billings to the city.

Auditor Stacey Pickering’s office contends Graham, between 2004 and 2007 as a Jackson police spokesman and 911 dispatch supervisor, earned almost $46,000 operating his private business, Professional Dispatch Management teaching dispatcher certification classes while on the city clock.

The Clarion-Ledger reports the suit filed Tuesday in Hinds County Circuit Court seeks over $45,000, including costs of the auditor’s investigation and interest.

The 58-year-old Graham, in his second term as supervisor now serving as board president, denies he falsified time records and other allegations, calling them politically motivated.

The certification courses were taught by Graham during regular work hours when Graham indicated on his City of Jackson timesheets that he had been at work. Attendees for the classes paid fees to a private company, Professional Dispatch Management, owned by Robert Graham, to earn certifications and re-certifications through the National Emergency Communications Institute. The actions took place from 2004 – 2007 when Graham was certified to teach for the National Emergency Communications Institute. NECI has since revoked his certification and no longer allows Graham to administer its programs.

“Our investigation began on this case in 2008 when our office received the first complaint,” said State Auditor Stacey Pickering. “The investigation indicated Graham’s time and expenses to recreate training material were paid by the City of Jackson when Graham was clearly not doing City business. We work to recover misappropriated funds as quickly as possible and consider civil lawsuits a final tool to recover funds. It is sometimes necessary when individuals refuse to pay after being issued a demand.”

“We are checking to see if he has to repay that money to the city and the legality of it,” Lisa Shoemaker, a spokesman for Auditor Stacey Pickering’s office, said of the utility stipend.

Davis started receiving the $35,000 annual stipend to oversee the department after the accidental drowning of utility director Chris Hadaway in 2009.

After The Commercial Appeal reported the stipend, it was cut on Jan. 18 by Alderman Greg Guy while he was acting mayor in Davis’ absence.

The stipend — along with two others, a $5,000 educational stipend and a $2,700 longevity stipend — have since all come under scrutiny.

Coupled with the mayor’s $145,000 annual salary, the stipends brought Davis’ salary to more than $187,000, making him one of the highest-paid elected officials in the state.

Aldermen are awaiting an opinion from the state Attorney General’s Office on the legality of the educational and longevity stipends before deciding whether to cut them from Davis’ salary.

Shoemaker said the educational and longevity stipends will not be investigated by the Auditor’s Office because they fall under city-related business.

Meanwhile, she said auditors have asked the Southaven Board of Aldermen to once again review charges Davis made on his city-issued credit card.

“We’re asking them for a second review,” Shoemaker said.

The mayor’s expenses since last year have been the focus of an ongoing state auditor’s and federal investigation.

In November, the Auditor’s Office ordered that Davis repay $170,000 in personal charges, penalties and interest to the city for unsubstantiated expenses spent on family counseling, personal trips, meals and clothing, including $67 spent at a gay sex shop in Toronto.

Through a group of supporters, Davis has repaid $96,000 of the money but still owes nearly $63,000.

Shoemaker said before the remainder of the money is repaid, auditors want to “look under a microscope at everything related to Mayor Davis.”

That includes his mileage reimbursements from the city, his travel expenses and a $1,000 donation he made to a political action committee supporting Mississippi State University, his alma mater.

Alderman Ronnie Hale said board members have been going over the credit card statements for the past few weeks and hope to wrap up an internal investigation by next week.

“We have been working to verify each charge to see if they are personal in nature,” Hale said. “Most of it has been easy to track to being a city expense, but there are a few questionable items that we are getting explanations for.”

He said once the board finishes with its examination of the statements, it will turn over its findings to auditors.

Shoemaker said the Auditor’s Office is still reviewing the board’s liability related to the expenses.

“We are working to wrap everything up sooner rather than later,” Shoemaker said. “And yes, it is still under review if the board will be held liable for any of the charges.”

Billy Lamont Johnson of Newton was recently charged with uttering forgery, and has since been indicted.

The now former Newton middle school employee is accused of cashing a check that did not belong to him.

For several years, district administrators say Johnson worked as a library assistant at Pilate Middle School. According to them, he left the job at the end of last school year.

The district says the incident in question happened after Billy Johnson left the school district last May. It was during the summer months after that when he’s accused of cashing a $700 check, that was not originally made out to him, at one of the banks in Newton.”

“This money that he’s accused of forging the check on is actually band booster money,” said Larry Gressett, spokesman for Newton City Schools. “It doesn’t come through the district. That’s a club that’s outside our business jurisdiction. They handle their own funds.”

Because Newscenter 11 contacted district officials after business hours Thursday, Gressett says administrators were not able to comment on the issue until Friday.

Meanwhile, district officials say part of their goal is to be transparent with the public.

“We don’t have anything to hide,” said Dr. Virginia Young, superintendent for Newton City Schools. “A lot of great things are going on here. This is a great district. It’s a great place to be and we want people to see that.”

Young says the district is in the process of putting together a commercial that will spotlight what’s happening within the district.

“The people who work here, we know what goes on here,” Young said. “But we want everyone to really see what’s really going on here within the district.”

If things work out as planned, Dr. Young says the commercials will appear on the local cable network within the next few months.

Information obtained Thursday by Newscenter 11 from State Auditor Stacey Pickering’s Office identified Johnson as a library assistant, not former library assistant.

Malcolm Sanders pled guilty to two counts — fraudulent statement submitted and wire fraud — in Rankin County Circuit Court, according to State Auditor Stacey Pickering.

Sanders was arrested in April following an investigation into the business he owned at the time, Sanders Lawn Service, which had a service contract with the school district along with other school districts in the Metro area.

The investigation revealed Sanders was not performing work or providing purchased products as specified in his contract and invoices to the school district, according to Pickering.

Sanders was sentenced to serve 10 years with five years suspended. He was also ordered to pay full restitution of $141,331, which includes principal, interest, investigative costs and court costs. It is to be repaid within four years of being released from prison.

Pickering said:

“Our investigation uncovered invoices from Sanders Lawn Service for $80,260.30 for pine straw purchased that was never provided to Rankin County School District.”

“Sanders Lawn Service created documents that concealed the fact the pine straw was not provided to Rankin County School District as reflected on the invoices submitted for payment. It is very important to me as State Auditor that we send a message to the public that we hold criminals accountable, especially when they steal taxpayer dollars and money that could be used for our students in the classroom. We also appreciate School Board member David “Grumpy” Farmer for his assistance in this case.”

The newspaper found the chamber reimbursed Davis for as much as $48,000 in one year alone for expenses incurred while promoting the city to prospective businesses.

Precisely how much Davis received from the chamber is unclear. On Wednesday, the organization was weighing a request by the newspaper for records related to the mayor’s spending.

Chamber executive director Ginger Adams said the organization will seek legal advice before releasing any records. Adams said she didn’t know if Davis abused his chamber expense account, as is alleged on his city account.

At the same time, she said the organization never questioned Davis’ spending, saying she took the mayor’s word that his expenses were legitimate.

“Absolutely. Why wouldn’t I?” Adams said. “Whether he abused funds or not, it’s not for me to decide. … This is the state auditor’s job to look into these things. It’s not my job.”

Adams said she has had no discussions with state auditors or the FBI. She said the newspaper’s inquiry about the expenses is the first she has received from any party outside the chamber.

Davis, who by state law cannot be forced to resign by the board of aldermen, did not return phone calls Wednesday about the chamber expenses.

Lisa Shoemaker, a spokeswoman for Auditor Stacey Pickering’s office, confirmed that her office has had no contact with the chamber, saying it investigates government entities only.

Adams sent an e-mail to Chamber members late Wednesday, saying she was “currently unaware of any improper use of Chamber funds. Further, I would like to ensure all Southaven Chamber members that the Chamber Staff and the Board of Directors shall be performing all proper and appropriate due diligence concerning this matter.”

Adams said Davis regularly submitted credit card statements — but not receipts — to the chamber to be reimbursed for expenses incurred while promoting the city. She said she didn’t know what specific expenses the mayor incurred, but said one expense likely involved dinners with businessmen.

“That’s what economic development means to me. Probably the most common thing is to take people out to dinner,” she said.

The chamber’s tax returns show that it paid $48,000 during the fiscal year ending Sept. 30, 2010, to cover “travel or entertainment expenses for any federal, state or local public officials.”

As a nonprofit corporation, those returns are public records.

Adams said the $48,000 involved expenses submitted by the city of Southaven to promote economic development. She said she didn’t know how much of that was incurred directly by Davis. However, Adams confirmed that the promotional expenses appeared on statements for a Capital One credit card used by Davis.

Adams said she had no details about additional reimbursements made by the Chamber to Davis in other years.

However, a source familiar with Davis’ chamber account said the arrangement extends back to at least 2006 and involves many thousands more in reimbursements. The chamber paid at least $42,000 through the arrangement during the fiscal year ending Sept. 30, 2009, the source said.

The Southaven Chamber of Commerce received the largest donation from the city of all the nonprofit and charitable organizations the city helps subsidize annually.

This fiscal year, $356,000 will be given to the organizations, with the Chamber receiving the lion’s share of $225,000. Last year, the organizations received $414,000, with the chamber receiving $140,500.

“The funding to the chamber goes into their operational fund, and what they do with it, that is up to them,” Southaven City Administrator Chris Wilson said.

Pickering, the state auditor, ordered Davis in November to repay more than $170,000 for using city funds for improper charges to both his city-issued and personal credit cards.

The personal expenses included trips, clothes, expensive dinners, entertainment, family counseling at an upscale clinic in Arizona and a $67 charge at an adult store in Canada catering to gay men.

The state auditor’s seven-month investigation of spending by Davis between July 2009 and April 2011 found that the city made a total of $128,642.59 in direct payments to Davis’ personal Capital One credit card after he submitted vague invoices to the city for reimbursement. He maintains the charges involve city-related business.

Davis was given 30 days to repay the funds to the city. He has repaid $96,000, money raised by anonymous supporters who donated to a fund called “Operation Rescue” set up at DeSoto County Bank.

The auditor’s office is expected to soon release the final amount he still owes, Shoemaker said.

The Southaven Board of Aldermen passed a resolution last week asking Davis to resign from the job he has held for 15 years, saying he “lied and misled” the board for his own reasons.

According to his attorney, Steve Farese, Davis is in an undisclosed health care facility and will be on leave for 30-60 days.