FORMER ELIZABETHTOWN POLICE CHIEF JAILED IN EMBEZZLING CASE

ELIZABETHTOWN -- Former Police Chief Dennis Michael Royston pleaded no
contest Tuesday to a charge that he embezzled more than $300,000 of the
town's money over 10 years.

Royston retired in January 2000 after 14 years as chief of the
Elizabethtown Police Department.

Through an arrangement with the district attorney's office, he was charged
and entered the plea Tuesday in Bladen County Superior Court.

Judge Greg Weeks sentenced Royston to 16 to 20 years in prison. The
sentence was suspended. Royston was placed on supervised probation for five
years and must serve 60 days in the Brunswick County Jail, beginning Oct.
1. He also was ordered to pay $100,000 in restitution to the town.

Royston, in his early 50s, now lives in Gaston County. His lawyer, David
Wall of Elizabethtown, declined to discuss the case Tuesday.

The allegation first surfaced shortly after Town Manager David Smitherman
was hired in May 2000. Smitherman became suspicious after reviewing budget
and accounting documents that showed numerous requests by the Police
Department in past years for money for undercover drug operations,
according to a statement issued by the town.

Smitherman discovered the money was not specifically itemized, which led to
further investigation by other town officials and the new police chief,
Bobby Kinlaw, who was hired in March 2000.

District Attorney Rex Gore said his office and the State Bureau of
Investigation began looking into the matter in late 2000 or early 2001.

SBI agents audited budget documents, bank account records and other
documents from Royston's tenure.

"So much of law enforcement is drugs and drug enforcement and money used
for undercover purchases," Gore said. "Oftentimes maybe the questions
aren't always asked that could be asked if something is designated for
fighting the war on drugs in your town. I think the nature of a drug
investigation made it harder to keep (records) of the expenditures."

The town's general fund budget this year is $3.6 million.

About 60 days ago, authorities notified Royston and his lawyer about
pending charges, Gore said.

"Once we said that, we made arrangements for him to turn himself in on a
day we could take the plea and get it over with," he said.

Gore said the money was used for "lifestyle-type" expenses, housing and
family. Royston had children in college, Gore said.

Former Town Councilman Henry Bostic said he was shocked that Royston, who
had been hired while Bostic was on the council, had been charged.

"I just don't want to hear it," Bostic said. "I loved him."

Bostic was on the council until 1999.

He said council members had no reason to suspect that money was being used
inappropriately.

"Absolutely not," he said. "This is a shock to me. It just absolutely
breaks my heart."

Council members Rufus Lloyd declined to comment on the matter. Council
member Dicky Glenn referred to the statement from the town, which said that
town officials have since "carefully reviewed their accounting process."

"As a result, additional checks and balances have been instituted to help
prevent the recurrence of any such event in the future,'' the statement said.

Other council members could not be reached Tuesday evening.

Royston was hired in March 1987 at the age of 37. He had been police chief
in Orangeburg, S.C., from 1982 to 1985, then worked for Acme Retail in
Gastonia.

He told the Observer at the time that he "felt strongly about
professionalism in law enforcement."

"I will try to provide good, strong leadership and take strengths from my
background and pass them along to the younger officers and diversify their
backgrounds," he told the Observer.

Gore, who became district attorney in 1991 and often worked with Royston on
cases, called Royston's actions "reprehensible."

"When a law enforcement person violates that standard, it hurts all the
good, honest people involved in law enforcement who sacrifice to their
families and live on salaries they're given to do their job," Gore said.
"It's really the kind of thing that makes you angry."