Former Sevier County Utility District President Indicted on Corruption Charges

KEY POINTS:

• Former SCUD President Matthew Ballard was indicted on charges of official misconduct and bribery.
• Investigation revealed a kickback scheme and misuse of public funds for personal gain.
• Ballard faces allegations of manipulating invoices, interfering with the investigation, and authorizing questionable spending.

Sevier County, TN – A former president of the Sevier County Utility District (SCUD) has been indicted on charges of official misconduct and bribery of a public servant following an investigation by the Tennessee Comptroller of the Treasury.

Matthew Ballard, who served as SCUD president for over 20 years, was placed on leave in January 2023 and subsequently terminated two months later. The Comptroller’s report, released on Friday, alleges that Ballard misappropriated at least $181,582.83 in public funds.

Kickback Scheme:

A key finding of the investigation was a kickback scheme involving Ballard and an electrical company. The company allegedly overbilled SCUD, and Ballard received kickbacks totaling $141,010 for himself and $17,750 for his father. Investigators identified 30 such payments made between 2018 and 2022.

Misuse of Public Funds:

In addition to the kickback scheme, Ballard is accused of misusing public funds for personal use, including:

• Personal Property Improvements: Misappropriating funds for work on his or his father’s property.
• Personal Purchases: Using district funds to purchase a leaf and lawn vacuum for personal use.

Other Allegations:

The Comptroller’s report also alleges that Ballard:

• Manipulated invoices to conceal a gambling debt.
• Interfered with the investigation by deleting data from his work devices and instructing an employee to provide false information.
• Authorized questionable spending exceeding $1.7 million, including excessive payments to the electrical company and other contractors.

Investigation and Next Steps:

The Tennessee Comptroller’s Office conducted a thorough investigation into Ballard’s activities. The indictment follows this investigation and will now proceed through the legal system.