Newspapers / Winston-Salem Chronicle (Winston-Salem, N.C.) / April 30, 1992, edition 1 / Page 2
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Sumler says he diverted funds Continued from paae A1 crimes with which he is charged. Sumler, Alderman Larry Womble, former alderman Patrick Hairs ton, and Rev. Lee Faye Mack were indicted by the FBI on charges of political corruption that included racketeering. Racketeer ing charges, which carry the heavi est penalty, were dropped against Mack last week and dismissed against Alderman Womble on Tuesday. Mack will face charges of per jury and obstruction of justice in a later trial, and Womble still faces four counts of extortion. Hairston and Sumler face a number of charges alleging that they pressured business leaders into hiring Sum ler's company, Associated Consul tants, and donating money to chari ties in exchange for favorable votes from the aldermen. Some supporters of Mack and Womble say that the dismissal of racketeering charges against them proves that the government's case was racially motivated, but that argu ment seemed less effective this week when Sumler took the witness stand. Throughout the day Tuesday, Sumler admitted that he had divert ed thousands of dollars he solicited for charities, that he cashed checks which were intended fofcharities and kept the money in his house, and that much of the money ended up with sources very close to him: his consulting business, his tabloid newspaper, and a charity run by his wife. Sumler's testimony was con fusing at best When Assistant U.S. Attorney Doug Cannon showed him a letter on his letterhead, Sum ler testified that it was not his letter. The totPT dftfprt 198ft, included a list of non-profit organizations to which Sumler said he had distribut ed monies given to him by Winston Salem businessman and FBI infor mant William Smith. The govern ment charges that Sumler used most of the money for personal uses. Sumler testified the letter was not a true account of where the money went. "I outlined this information and left it for my secretary," he said. "It contains some information I wrote, but there are some expla nations left out and even I made some mistakes." The letter states that $1000 was given to the NAACP. "Did you cause $1000 to be given to the NAACP from Bill Smith?" asked Cannon. "Not in all cash, no," Sumler replied. He explained that the money went to purchase advertise ments, most of which were printed in a tabloid he publishes, the AC Phoenix. The letter stated he gave $1000 to the NAACP youth, but he could only account for $500, which he said he gave to the NAACP Youth Director, who was his wife. The letter stated he gave $1000 to the Liberty East Rehabilitation project, but he had no receipt to prove so. It also stated he gave n $2000 to PATH (People Arc Treat ed Human), a group of which he was president "I don't think we had a bank account then for PATH," he said. "I don't think I put it into the account I don't know when I disbursed the funds. Anyway, that letter was just a general outline of where funds went" In 1987, Naegele Outdoor Advertising employed Sumter's ser vices and gave him $10,000 to give to non-profit groups, but Sumler could not produce receipts to prove it Most of that money he had advised them to donate to two groups of which he was president, AC Cultural and Educational Com mission, and Atrairiento Casa, for merly the Dungeon Club. He testi fied that he did not tell Naegele officials that he was president of those groups. At the time, his moth er in-law was one of die few board members of PATH, and his sister was one of a few. board members of AC Cultural and Educational com mission. ? He engaged in fundraising activities for the Guilford Commu nity Action project (GAC): about the same time he advised Naegele ~ tolfonate $2000 to GAC. Cannon produced $2000 worth of checks from Naegele to GAC which were endorsed by director Earl Jones and signed over to Rodney Sumler. "I cashed them as compensa tion for work I did for them/ he said, clearly irritated. But Jones stated that they canceled the fundraising contract with Sumler because he was unable to raise any money beyond his own fee. Throughout Sumler'.^ first day on the witness stand, his attorney, John A. Dusenbury in, repeatedly objected to Cannon's questions, but Judge William Osteen overruled them. Sumler was left to answer direct questions about what he had done with charity money. Womble elated After Judge Osteen dismissed the two racketeering charges against him on Monday, Alderman Larry Womble came close to show ing emotion as he stepped through the swinging gate that separates courtroom participants from the audience, and sporting a very wide smile, said, "I am elated with the decision the judge has made, and I'm confident these charges will prove to be false. You haven't seen me downtrodden and disappointed. I'm still smiling, still shaking hands. After this is over with, I will be vindicated. I have complete trust in the court" In dismissing the racketeering charges against Womble, Judge Osteen said he felt that Womble had no knowledge of Sumler's actions, and that the prosecution had failed to prove any relation ship between Sumler and any of the organizations that were involved in the so-called conspir acy. Vote Walter Marshall for School Board Punch 127 "Decades of Dedicated Service to the Community" Support The Marshall Plan for the W1nston-Salemv/Forsyth County Schools "Build bridges and find a common ground" An Advocate for Parents' and Students' Rights ** Promote Multi-Cultural Curriculum ^ Require Staff/Faculty Sensitivity Training Promote Professionalism for Teachers/Freedom to Teach Improve Discipline by Using Conflict Management Techniques and Building Self-Esteem Design Curriculum and Staffing Pattern Commensurate with the Student Population being Served Support Community Based Schools if <a 1 Rodney Sumler testified Tliesday that soma of tha monefes Intend ed for charities ended up with sources close to him. . o? A* V- /Ma H I UK CHUCK FOR STATE AUDITOR CHUCK HICKS FOR STATE AUDITOR CHUCK HICKS FOR STATE AUDITOR CHUCK HICKS FOR STATE AUDITOR CHUCK HICKS FOR STATE AUDITOR CHUCK HICKS FOR STATE AUDITOR CHUCK HICKS FOR STATE AUDITOR CHUCK HICKS FOR STATE AUDrrOR CHUCK FOR STATE AUDTTOR . ^ m the Anderson Center Conference Room . WSSU Campus Saturday, May 9, 1992 1 0:00 a.m. RSVP (722-7895) ? Limited Seating ? Doorprizes Reservation Deadline: Thursday, May 7 TOPICS SB Earn Income: part-time/full-time 62 Mutual Funds 83 Life Insurance E3 403 (B)/TSA Plans B5 Real Estate Bl Rollover/IRA's Joseph D. Williams Sr. senior consultant Joseph D. Williams Jr. associate Ashley D. Williams associate Spit P. ? ' ^ ?? ? ^ >ij?vWC.'vvv ?' V^Xx^WX*>VV<,.V ^ Single Copy 78* - Mall Subaorlptfon Rates (payaMt mi order) In County 2 years $40.95 1 yoar ...... .........30.72 6 mos .20.48 3 mos .'....lO-fl* Out of County /State . . 2 years - $45.06 1 year ....35.72 6 mos .26.46 ; 3 mos ?J..1 5.24 Q Yea, please send me the Chronicle. Nam* Addrass City St. Zip. ? 2 MaM to: Check endosedtar Q 1 year Q Smooths Q 3 month* Winston- Salem Chronic! Is P.O. Box 1636 Winston-Salem, NC 27102 The Mnefon-SaJam Chronldm is published every Thursday by the Winston-Salem Chronicle Publishing Co. Inc., 617 N. Liberty St. Mailing addreaa: P.O. Box 1636 Winston-Saiem, NC 27102 Phone: (91$) 722-6624 FAX: (919)723-9173 Second class postage 051 paid at Winston-Salem, NC 27102 The WlnitonSsfam Chronicle is a member of: ? Associated Press ? Audit Bureau of Circulation - ? National Newspapers Publishers Association . ? North Carolina Press ? Assodadon ' - ? North Carolina Btacfir Publishers Association ? National Advertising Representative: Amalgamated Publishers, fnc. . (212)869-5220 . MAKE VjUVH-KiMVlliJM i < ; : ' ! ? . . kc.f r-l "> , or State Ai.ci.U J ^ C0? r> . *tf r ? VOTE CHUCK HICKS FOR STATE AUDITOR ON MAY 5TH CHKKIIICKS is the only Democratic candidate for State Auditor who has ever conducted a governmental audit. Vet that's what the State Auditor does? audits state departments, agencies, universities, community colleges and technical schools to ensure that your tax dollars are spent efficiently. chi ck mens is the only Democratic candidate for State Auditor who is a Certified Public Accountant (CPA), Yet only CPAs are trained to issue official opinions on certified audits, including audits of governmental entities. CHICK HICKS has been partner in charge of governmental auditing at the largest accounting firm based in North Carolina since 197<>. CHI CK HICKS has lectured on governmental auditing at universities. the Institute of Government, and associations of CPAs in four states. CHI CK HICKS was the first CPA in North Carolina to receive the prestigious Certificate of Educational Achievement in Governmental Accounting. }\orth Carolinians deserve a State Auditor who has spent his professional career as a CPA auditing governments. Only CHUCK HICKS has the experience to make government more efficient and save tax dollars. T ' ??
Winston-Salem Chronicle (Winston-Salem, N.C.)
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April 30, 1992, edition 1
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