STRAY ROUNDUPS, SALES HELP PAD K-9 FUND

[Telegraph] Editor's Note: Second in a two-part series examining
transactions found within Sheriff J.B. Smith's unaudited K-9 and Livestock
Fund. The first story ran Sunday and can be viewed in its entirety at
www.tylerpaper.com.

While Smith County sheriff's officials were appealing for donations to
support the department's search and rescue animals, the lawmen
administering the K-9 and Livestock Fund were paying twice the current
average rates for pasture leases, the Tyler Morning Telegraph found while
reviewing 10 years worth of account records.

Sheriff's officials spent at least $41,550 to lease 133.046 acres for a
work farm, using donations given by citizens and businesses to the
sheriff's unaudited K-9 and Livestock fund, which collected a total of
$520,560.43 over the past decade.

Although Sheriff J.B. Smith said the K-9 fund was a non-profit account used
to support the agency's dogs and horses, the agency did not seek a 501
(c)(3) status through the Internal Revenue Service or apply for its own tax
ID number, bank records show.

When asked about the fund and its activities, the sheriff in February told
the newspaper's editorial board that he could not recall having signature
authority on that account, a recording of that meeting shows.

And he could not recall signing a check on the account.

Account records show he signed signature cards in 2001 and 2002.

In the months preceding his remarks to the newspaper, the sheriff was
signing checks on that account, including a $2,500 payment to Tyler Welding
in October 2003.

Other checks the sheriff signed include $3,000 to Ross Bozeman in 2001 for
pasture rental, and checks totaling $800 to Dale Geddie for horseshoeing
from 2001 to 2002.

Checks were also written for $242 to Designer Graphics in 2002 and to
Glenwood Animal Clinic in 2002 in the amount of $411. Records show a $21.50
check to Tyler Welding in 2002 and a $227 check to Just For Trucks for
ramps in 2003.

Smith also issued a $326.96 check to "MPS" for a Makita chain saw in 2003,
and a $150 check to James Lowery in 2003. One of the final checks Smith
signed in 2003 was given to Lt. Charlie Baker in the amount of $134 for
"reimbursement."

STRAY MONEY

During its examination of the account records, the Morning Telegraph found
transactions that appear to indicate the sheriff's office used county
equipment, employees and inmates to make money, which was then deposited
into the K-9 fund.

Money was put into the K-9 fund from hay sales, horse training and animal
sales.

Other deposits include drug seizure money and $46,900 from the county's
jail commissary vendor, Mid-States Services, Inc.

Another $62,216.05 in fund deposits were directly generated from the sale
of stray livestock rounded up by the department and from reimbursement of
expenses incurred in those activities, the newspaper found.

Of that amount, $49,976.55 in checks were deposited into the K-9 fund from
audited county accounts. Another $12,239.50 came from insurance companies.

Some of those checks written from audited county accounts for deposit into
the K-9 fund appear to be payment for fines. In the notation sections,
these checks include report and case numbers and the words "estray fees."
Estray means a stray domesticated animal.

Auditor Ann Wilson has not answered questions posed in recent weeks about
why money from audited county coffers would be transferred into the
sheriff's unaudited account, or whether there were any invoices to support
the transactions.

Ms. Wilson's stamped signature appears on the treasurer's checks along with
County Treasurer Joyce Smith and County Clerk Judy Carnes.

In an earlier conversation, Ms. Wilson said money from livestock was given
to the K-9 account as "reimbursement" for expenses associated with the
animals' care.

Some of the animals sold by the sheriff's office were received by the
department as donations while others were picked up as strays. Deputies
historically use some county equipment and inmates to round up then contain
the stray animals, which wandered away from their pasture or fled a wreck
scene, officials said.

After corralling the animals, the sheriff's office is required by law to
maintain the animals for a short period of time so their owners may reclaim
them. Those who do are asked to pay fees associated with their upkeep.

The other unclaimed animals are sold, many at auctions throughout East Texas.

These sales were not limited to cattle. A 1997 transaction shows the
sheriff's office earned $60 after selling 17 emu chicks to a Tyler lighting
company.

However, money received from these animal sales and insurance payments went
into the K-9 fund instead of county coffers, records show.

# Between 1995 and 2000, a total of 68 checks worth $14,786.77 were
deposited into the K-9 account, using funds maintained in an audited county
account called the "sheriffs special." According to Ms. Wilson, this
"special" account contained proceeds from livestock sales and was
maintained at Tyler Bank and Trust, now operating as Regions Bank. Those
transfers stopped in 2000.

# Functions and revenues associated with the sheriff's special account were
shifted into the general fund, Ms. Wilson said. A total of 91 checks worth
$35,189.78 have been written to the K-9 fund from the general fund between
late 1996 through February of this year.

# The sheriff's account also received $12,239.50 in collision-related
payments from Hartford Insurance. All those payments were deposited into
the K-9 fund in 1999, 2002 and 2003 as payment for services rendered by
deputies during the roundup of stray cattle after traffic collisions.

There was also a 1995 deposit of $1,960.41 from State and County Mutual
Fire Insurance Company that included a notation of "property damage."

When asked about the propriety of these transactions, Smith said in June he
was unaware it had been going on.

"That's a lot of money," he said.

Other records reviewed by the newspaper indicate the K-9 fund benefited
from farm activity, including a $640 check written in 2000 by a Houston
rancher for the purchase of 40 rolls of hay.

Bank records also reveal expenses associated with the upkeep of the animals
such as 25 checks worth $23,393.82 spent by the department for feed, and
$19,992.14 for vet bills.

The department also wrote 11 checks totaling $8,832.93 to Tyler Welders
Supply, but no purposes for the expenses were noted.

In October 2003, Smith wrote a personal check in the amount of $273.12 to
the K-9 fund, which included a notation of "reimbursement - fertilizer."

Other records show that in 2000, Grasshopper Hill ranch in Flint issued 12
checks worth $3,550 to the fund. Checks were sent to the same post office
box as is listed on Smith's personal checking account. And all of the
ranch's checks were addressed to "Smith County Search Team, Attn: Marvin
Wintters."

When asked about the nature of those checks, ranch owner Dr. David K.
Fletcher in September said, "Those were donations. I had horses that needed
to be worked because I simply didn't have time to do it. They said they had
prisoners out there who were doing stuff like that, and that if I wanted to
bring them out there, they would work them if they had the opportunity.

"I said, 'well, what could I do?' They said, 'Well you can't pay us for
that, but if you want to donate to the search and rescue team or whatever,
that would be fine.' I said, 'OK.'"

The physician said he made numerous donations to the fund.

"They did work those horses and I brought the horses home and I think I
still donated money for a long time," Fletcher said. "I take it they took
that money and fed their dogs or whatever it is they do."

Smith did not respond to questions about the physician's donations.

PASTURE RENTAL

Regular expenses paid for by the K-9 fund included monthly payments of $400
and later $500 to rancher Ross Bozeman Jr. to lease land for a county work
farm, which until recently housed stray animals and the agency's dogs and
horses.

Between 1994 and 2001, the K-9 fund paid Bozeman at least $41,550 to lease
pastureland for a county work farm, a tract that abuts ranch land that
shows Smith as the listed owner since 1997.

In August 2001, a final check for $6,000 was written from the K-9 fund for
a full year's rent, an increase from $4,800 annually in prior years.

The sheriff's office paid between $36 and $45 an acre annually to lease
133.046 acres for the work farm, although average annual rental prices for
pastureland in the area generally range from $10 to $20 an acre, the
newspaper found.

In spite of the amount paid to lease the land, there are few signs of
improvements - a barn, a few corrals and a faded sign denoting the
existence of the county work farm are about the only evidence remaining.

Immediately next door, a newly constructed black metal fence and gate
featuring the words, "Texas Sheriff," marks the entrance to Smith's
136-acre ranch.

When first asked about the lease, Smith said the county rented around 137
acres from the rancher.

Sheriff's officials said initially they could not locate a copy of the
lease agreement for the work farm or related receipts showing expenses for
maintaining the property.

County officials told the Morning Telegraph there was no lease agreement on
file.

Bozeman's wife said in August her husband would not be commenting on the
lease arrangement due to health reasons.

Finally, in response to a written request for the lease agreement, the
sheriff in September notified the newspaper a copy of the document had been
located.

That record was a five-year lease agreement for 40-acre and 93.046-acre
tracts for a period beginning Jan. 1, 1999, until December 2004, but makes
no mention of any prior agreement.

Smith, on behalf of his search team, agreed to pay $500 a month to lease
the land, the document shows. The lease dated January 2000, was signed by
Smith, Bozeman and Bozeman's wife Helen.

"I signed the contract with him (Bozeman), but that written lease was
reviewed by the DA's office and the commissioner's court," Smith said. "We
went before the commissioner's court with it."

In support of the sheriff's statements, Chief Deputy Bobby Garmon provided
a copy of the lease and minutes of a commissioners meeting.

However, the document of that meeting described action taken on March 19,
1990 - a full 10 years before the lease provided to the newspaper was executed.

In that 1990 meeting, the commissioners were asked to consider only a
request to "declare Smith County Sheriff Department Livestock Compound a
Work House."

No mention was made of a lease.

FUNCTIONS REDUCED

Smith said his department stopped leasing the work farm property two years
ago because it was expensive and too remote to be convenient.

"We thought it best to have it (dog and horse facilities) located centrally
so it's now located at the minimum and medium security (jail)," the sheriff
said. "And we don't have to pay for it."

Claiming Smith County officials refused to fund his search dogs and horses,
the sheriff's office appealed to the good will of businessmen to construct
new dog pens and equine facilities beside the Low Risk Facility.

Contractor Supplies, Inc., East Texas Brick and Tyler Building Systems
responded by donating $30,000 in materials to build 10 dog runs, which were
constructed by Smith County Jail trusties and off-duty sheriff's employees.

The facility opened in 2002 with five bloodhounds taking residence.

At the opening ceremony, the sheriff also expressed appreciation to
Brookshire grocers for supplying free dog food.

"To run a program like this you have to have someone dedicated," Garmon
said. "Chief Beddingfield, that was his deal, he liked to do stuff like
that. When he retired and everything, we don't have the people here that
know how to care for horses and dogs like he did."

The agency now leases pasture from a rancher on Interstate 20 on an "as
needed" basis to accommodate stray cattle in emergency situations.

Thus far, the agency has paid only $275 in 2002 and $175 in 2003 for that
service.

Roy Maynard covers local government. Jacque Hilburn covers police, fire,
and public safety organizations.