7 arrests in 3-year federal investigation of Prichard Water multimillion dollar fraud

MOBILE, Ala. (WPMI) — WATCH PRESS CONFERENCE

A three-year investigation that began with a multi-agency raid of the Prichard Water Board offices in February 2022 has led to arrest of 7 people, according to the U.S. Attorney’s office.

The indictment alleges that from as early as 2018 Nia Bradley, former operations manager, and 6 others defrauded the Prichard Water board of over $2.4 million.

Randy Burden, who is charged in State court with theft along with Bradley, her husband Anthony and Teresa Lewis, is also charged federally along with:

Steve Jones, 61, of Mobile

Larry Knight, 35 of Mobile

Dejuan Lamar, 47 of Mobile

Ayanna Payton, 47 of Eight Mile

Stephanie Hunn, 49 of Mobile

According to Costello, Knight and Lamar were arrested Thursday morning, while Bradley, Burden and Jones turned them selves in to federal authorities.

According to U.S. Attorney Sean Costello, the scheme involved a false and fraudulent contractor scheme, the involved outside contractors, employees and board members of the Prichard Water Board.

Ayanna Payton and Stephanie Hunn have already pleaded guilty to charges and are awaiting sentencing. Ayanna Payton served as a board member and was hit with a minor Ethics Violation in 2019. The Alabama Attorney Generals office referred the case back to the Prichard Water Board to be handled administratively.

The federal government will be seeking monetary judgments in the amounts of $2,459,279.39, $960,851.41 and $302,134.90. The indictment alleges that Nia Bradley and Randy Burden laundered $960,000 through a business owned and operated by them.

The 32-count indictment alleges:

• Conspiracy to commit mail, bank and wire fraud
• Conspiracy
• Money Laundering Conspiracy
• Wire Fraud
• Bank Fraud
• False Tax Filing
• Aiding and assisting in false tax filing

Ayanna Payton plead guilty to Conspiracy to commit mail, wire and bank fraud, conspiracy, wire fraud, bank fraud and make false statement in tax document.

Payton entered that plea in November 2023 and was found guilty on November 11, 2023. She has a sentencing date currently set for April 28, 2025.

Stephanie Hunn plead guilty to the same charges in February 2023, she also has a court date currently listed as April 28.

Randy Burden and Steve Jones have both entered not guilty pleas.

Penalties range from 3 to 30 years in prison, if convicted.

Read the indictment:

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According to the indictment unsealed today, Nia Bradley, 50, of Mobile, Alabama; Randy Burden, 47, of Prichard, Alabama; Steve Jones, 61, of Mobile, Alabama; Larry Knight, 35, of Mobile, Alabama; Dejuan Lamar, 47, of Mobile, Alabama; Ayanna Payton, 47, of Eight Mile, Alabama; and Stephanie Hunn, 49, of Mobile, Alabama, were charged with various federal crimes listed below. Payton and Hunn previously pleaded guilty to all charges against them and are awaiting sentencing. Their proceedings were sealed in light of the ongoing investigation which led to charges recently filed against Bradley, Burden, Jones, Knight, and Lamar. Each of the defendants face potential sentences of decades in prison.

The Grand Jury returned an indictment alleging the following scheme: starting as early as 2018 through 2022, the defendants bilked the Prichard Water Board of at least approximately $2.4 million dollars through a false and fraudulent contractor scheme involving outside contractors and employees and board members of the Prichard Water Board. Approximately $960,000 of the money was illegally laundered, including through a business owned and operated by Bradley and Burden.

The Prichard Water Board provides water and sewer services to approximately 8,000 residential and 2,000 commercial clients and is funded by customer payments and also through a $55 million bond it secured in 2019. The indictment alleges that the criminal scheme involved the creation of a fictitious business by Hunn and the creation of false invoices to justify unlawful payments to Hunn, Jones, Knight, and Lamar. Bradley and Burden, who were employees of the Prichard Water Board, allegedly falsified payment authorizations and received kick-back payments and other benefits.

Payton and another uncharged co-conspirator served on the board of the Prichard Water Board where they are alleged to have falsified payment authorizations and received kick-back payments and other benefits for their roles. Several of the conspirators communicated through coded messages and destroyed evidence to attempt to avoid detection of the crimes, according to the indictment. Bradley, Payton, Hunn, and Jones committed tax fraud to avoid revealing the criminal scheme and to avoid paying taxes to the United States. Through its criminal cases, the United States is seeking money judgments in the amounts of approximately $2,459,279.39, $960,851.41, and $302,134.90, as well as the forfeiture of three real properties which were purchased using fraud proceeds and involved in the money laundering scheme.

Nia Bradley is charged with Conspiracy to Commit Mail, Bank, and Wire Fraud; Conspiracy to Defraud the United States (Taxes); Money Laundering Conspiracy; Wire Fraud; Bank Fraud; and related tax charges.

Randy Burden is charged with Conspiracy to Commit Mail, Bank, and Wire Fraud; Money Laundering Conspiracy; and Bank Fraud.

Steve Jones is charged with Conspiracy to Commit Mail, Bank, and Wire Fraud; Money Laundering Conspiracy; Bank Fraud; and filing false tax returns.

Larry Knight and Dejuan Lamar are charged with Conspiracy to Commit Mail, Bank, and Wire Fraud and Bank Fraud.

Ayanna Payton and Stephanie Hunn have pleaded guilty to Conspiracy to Commit Mail, Bank, and Wire Fraud; Conspiracy to Defraud the United States (Taxes); Wire Fraud; Bank Fraud; and False Tax Filings and both women are awaiting sentencing.

“The taxpayers of the Southern District of Alabama deserve to be able to rely on competent, honest public servants,” said United States Attorney Sean P. Costello. “This indictment is the result of careful, thorough, and meticulous investigation. Together with our partners in law enforcement, we will continue our efforts to protect the taxpayers and hold accountable thieves who seek to enrich themselves at the expense of our community.”

“Fraud and theft by government employees from the very people they are put in place to serve will not be tolerated,” said FBI Mobile Division Supervisory Special Agent Parker Still. “This investigation is another example of law enforcement cooperation between federal, state and local entities to ensure people have trust in their public works.”

“Corrupt public officials waste government resources and diminish the trust citizens place in their government to provide the essential services they expect,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue investigating and forwarding for prosecution those who disregard the public trust by misusing taxpayers’ funds to enrich themselves and their coconspirators.”

“The U.S. Postal Inspection Service remains steadfast in our commitment to protect the nation’s mail system from illegal use,” said Shameka Jackson, Acting Postal Inspector in Charge of the Houston Division. “With the collaborative investigative efforts of local, state and federal law enforcement agencies, we will continue to work together to bring to justice those who abuse the trust given to them by the American people.”

The Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and United States Postal Inspection Service, investigated the case with assistance from the Mobile County District Attorney’s Office and the Mobile County Sheriff’s Office.

Assistant U.S. Attorneys J. Bishop Ravenel and Kasee S. Heisterhagen are prosecuting the case on behalf of the United States.

An indictment or information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.