FBI INVESTIGATES BANK ACCOUNT OF FORMER SHERIFF

SHELBY - Former Cleveland County Sheriff Dan Crawford is being investigated
by the Federal Bureau of Investigation in connection with a bank account
found shortly after he left office.

More than $70,000 moved through the account over a five-year period,
including thousands of dollars seized from illegal video poker machines and
money seized in at least one drug case. The account did not go through the
Cleveland County finance office, something that "should never happen,"
according to County Finance Director David Dear.

The FBI took over the investigation from the Cleveland County Sheriff's
Office early this year.

The FBI in Charlotte did not return phone messages seeking comment.

Rob Deaton, Crawford's legal adviser, said Crawford will cooperate with the
investigation.

"We have reliable information that the present sheriff contacted the FBI
alleging that the former sheriff intentionally misappropriated government
funds," Deaton said. "This allegation is absolutely false, and Sheriff
Crawford will cooperate with any investigation and has thus far."

The investigation centers on an account at First Charter Bank in Shelby.
The account is named: CLEVELAND COUNTY SHERIFF'S OFFICE, Sheriff Dan
Crawford Special Fund.

Deaton said the account was established by Crawford as a flower fund for
employees who had a death in the family. It grew to include Christmas
parties and other things that, Deaton said, the county would not pay for.
He said Crawford learned from the North Carolina Sheriff's Association that
sheriffs in other counties had similar accounts. Deaton would not provide
the names of those sheriffs.

"This account was an account that did enormous good for the Sheriff's
Office," Deaton said. "This Sheriff's Office was made better by the former
sheriff's actions and decisions that were made."

Deaton said the primary source of money for the account was donations from
people and groups who wanted to help the Sheriff's Office.

Crawford was sheriff from 1994 to 2002. In a re-election bid, he was
defeated by current sheriff Raymond Hamrick in the Democratic primary.

The Star has obtained copies of account records, including check stubs,
canceled checks and correspondence between county officials and First Charter.

The correspondence includes a Dec. 30, 2002, internal memo written by
Sheriff's Capt. Brian Hawkins (see related story, Page 2A). The memo came
one week after the account was discovered and summarizes what happened
after that discovery.

Hawkins' investigation revealed that $5,961.25 from illegal video poker
machines was forfeited to the county and then deposited in the First
Charter account.

Deaton said if any video poker or drug money was deposited into the account
that it was an "error."

"He (Crawford) never intended to deposit any forfeiture money into this
account," Deaton said. "If there is any forfeiture money deposited, it was
an oversight or inadvertent error by the sheriff or another employee."

Deaton said the forfeiture money is at the center of the FBI's investigation.

"It is my well-informed opinion that the FBI is only interested in
substantial money that may have been intentionally diverted from federal,
county, state or local agency seizure funds," Deaton said. "It is my
opinion this was an account that was used to supplement things in the
Sheriff's Office that the county did not pay for. The FBI, if this is
confirmed, won't be further interested in this case."

Hawkins also discovered checks written off the account, copies of which
have been obtained by The Star.

One of those checks was for $1,475. It was made out to Crawford and signed
by Crawford on Nov. 11, 2002, two months after Hamrick defeated Crawford.

Deaton said Crawford wrote the check to reimburse himself for money
contributed to the account. Deaton said he could not document any
contributions to the account by Crawford at this time.

"This account existed for many years," Deaton said. ". A number of
employees knew about the account, including the present sheriff. It's not
like they stumbled across it, like they may have you believe."

Other checks with Crawford's signature included one for $33.97 for a
two-year renewal to Popular Mechanics magazine. The check was dated Oct.
14, 2002, two months before Crawford was to leave office.

Other magazine renewals in October 2002 included Motor Home Magazine and a
two-year subscription to Police Magazine.

Deaton said the magazine subscriptions were from school groups that
approached Crawford about buying a subscription.

"He would always order subscriptions from the school groups, from each
school, as I understand," Deaton said.

Among the records obtained by The Star is a check ledger, which runs from
June 12, 1997, until Oct. 13, 2001.

The ledger includes more than 250 entries. Here is a sample of deposits and
checks that were written:

DEPOSITS

More than $73,045.34 is listed as deposits. A number of them are labeled as
donations, including:

- - $150 from Eaton on Oct. 24, 1997

- - Four donations from Wal-Mart totaling $7,000

- - An Aug. 20, 1999, deposit labeled, "$2,500 deposit Dover Found. canine"

- - An Aug. 20, 2001, deposit of $7,500 where the first word in the notation
is "Dover" but the rest is illegible.

Others have no notations or general notations, such as:

- - $8,266 on May 6, 1999, with no notation

- - $1,800 labeled "book money"

- - $6,850 from "calendar money"

- - $607.05 in "hat sales"

EXPENDITURES

More than $51,064 is listed as expenses in the account, including:

- - $718.32 on Oct. 13, 1997, to Command Uniforms

- - $460 on Feb. 27, 1998, for cash

- - $500 on June 25, 1998, for cash

- - $775.92 on May 18, 1998, to S and M Sport Shop

- - $5,000 on Aug. 29, 2000, to Lt. Billy Benton, with the notation "drug deal."

- - $150 on April 21, 2001, to Cleveland Demo

There were also a number of expenses for flowers for funerals and donations
to community and national organizations, such as MDA and the Cleveland
Kidney Association.

An Internet account log from the First Charter account shows that it was
gradually drained of money starting in early September 2002, when it held a
balance of $6,336. Most checks during that time were for less than $100,
with the exception of three checks that were cashed totaling $5,000.

The county's primary bank is First National Bank, said Dear.

He said the county has no accounts with First Charter.

Dear said that county regulations are clear on how money should be handled.

"There are no exceptions as far as county money goes," he said. "All money
that is county money should go through the county finance department."

That includes donations, he said.

"If they are donated to the county or a county department, then it's public
money in my opinion," Dear said.

Deaton said he didn't believe the donations were public money.

"The county was aware of this account," Deaton said. "It's a common
practice in other counties."

But he conceded that the way the account was managed "may be a technical
violation of state statues. We will try to correct whatever needs to be
corrected."